Difficulty Procuring Ingredients and Persistently High Logistics Costs

「The logistics industry continues to face labor shortages, an aging driver workforce, and the need to comply with working-hours regulations, as well as increases in labor, utilities, and fuel costs. Contractor agreements with delivery companies therefore require periodic review. In addition, amendments to the Freight Motor Transportation Business Act scheduled to take effect in April 2026 will require measures to improve logistics efficiency and ensure fair transactions when outsourcing deliveries, creating the possibility of further increases in logistics costs.」

「Because the Group's core wholesaling business involves daily deliveries to customers, its reliance on delivery contractors has increased. In connection with the logistics industry's 2024 problem, it reviewed contractor agreements due to higher logistics costs, including labor and fuel costs. In 2025, amendments to the laws known as the two revised logistics laws, the Act on the Optimization of Physical Distribution and the Freight Motor Transportation Business Act, will also introduce mandatory logistics-efficiency measures and transaction regulations when outsourcing deliveries. If these changes lead to further cost increases and a review of contractor agreements, or if the Group is unable to secure personnel for its own deliveries because of labor shortages or other reasons, this could affect its business performance.」

「In the food wholesaling industry, companies continue to face higher product prices driven by rising raw material and labor costs, chronic labor shortages, and the need to respond to increasingly diverse consumer needs.」

「However, the challenging and uncertain outlook continues due to the weaker yen, soaring raw material and energy prices, changes in consumer sentiment caused by rising prices, changes in behavior during the COVID-19 pandemic, and prolonged difficulty in hiring.」

「On the other hand, the outlook remains uncertain due to monetary tightening resulting from global inflation, the yen's depreciation against other currencies, soaring raw material and energy prices, changes in consumer sentiment caused by rising prices, and changes in behavior during the COVID-19 pandemic.」

「Because the Group's core wholesaling business involves daily deliveries to customers, its reliance on delivery contractors has increased. It may be required to review contractor agreements due to higher logistics costs, including labor and fuel costs, arising from the logistics industry's 2024 problem, and may also be unable to secure personnel for its own deliveries because of labor shortages or other reasons.」

「However, the impact of foreign exchange rates due to the yen's depreciation and the surge in energy and raw material prices resulting from the prolonged Russia-Ukraine situation are not expected to ease for the time being, and the outlook remains uncertain.」

「During the first quarter of the current consolidated fiscal year (1 April 2022 to 30 June 2022), Japan's economy showed signs of recovery as increased vaccination rates and eased restrictions on activities led to more opportunities to go out and a recovery in human mobility, although the impact of prolonged COVID-19 continued. However, the outlook remained uncertain due to the sharp depreciation of the yen, soaring raw material prices, and geopolitical risks associated with the situation in Ukraine.」

「The spread of COVID-19 led to repeated reissuance of states of emergency and continued restrictions on economic activity, including requests to refrain from nonessential, nonurgent outings and shortened business hours. Although signs of recovery emerged as requests for self-restraint were gradually eased from October 2021 and the number of COVID-19 cases trended downward as vaccination rates increased, the outlook remained uncertain due to the risk of product shortages caused by surging global crude oil prices, price increases resulting from the weaker yen, and transportation problems from overseas, as well as the spread of the Omicron variant.」

「The Group sources a certain volume of food ingredients through overseas trading companies and manufacturers. Because fluctuations in foreign exchange rates cause procurement prices to fluctuate, a depreciation of the yen against foreign currencies could raise procurement prices and affect the Group's business performance. In addition to foreign exchange rates, significant changes in food supply and demand, such as fluctuations in food market prices due to crop conditions affected by weather and other factors or the introduction of import restrictions, could likewise affect the Group's business performance.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「By introducing a vehicle dispatch system for its own vehicles, the Group is building an efficient logistics network, improving efficiency, and working to contain its cost burden. It is also working to improve driving practices, including compliance with statutory speed limits and avoidance of driving behaviors involving sudden actions, by equipping all vehicles with dashcams. However, a greater-than-expected increase in costs could affect the Group's business performance.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「By introducing a vehicle dispatch system for its own vehicles, the Company is building an efficient logistics network, improving efficiency, and working to contain its cost burden; however, rising costs could affect its business performance.」

「In the food industry, we consider the soaring costs of raw materials and logistics, along with higher labor rates due to labor shortages, to be management challenges for the industry as a whole, and the outlook has remained challenging.」

「In the food industry, we consider the soaring costs of raw materials and logistics, along with higher labor rates due to labor shortages, to be management challenges for the industry as a whole, and the outlook has remained challenging.」

「In the food industry, we consider the soaring costs of raw materials and logistics, along with higher labor rates due to labor shortages, to be management challenges for the industry as a whole, and the outlook has remained challenging.」

「Because the Group's core wholesaling business involves daily deliveries to customers, its reliance on delivery contractors has increased. If contracts are reviewed due to higher logistics costs, including labor and fuel costs, or if the Group is unable to secure personnel for its own deliveries because of labor shortages or other reasons, this could affect the Group's business performance.」

「In the food industry, consumers remain strongly inclined to economize and seek lower prices as real incomes stagnate due to rising prices, while the challenging environment continues, with logistics and fuel costs increasing amid labor shortages.」

「In the food industry, consumers remain strongly inclined to economize and seek lower prices as real incomes stagnate due to rising prices, while the challenging environment continues, with logistics and fuel costs increasing amid labor shortages.」

「In the food industry, consumers remain strongly inclined to economize and seek lower prices as real incomes stagnate due to rising prices, while the challenging environment continues, with logistics and fuel costs increasing amid labor shortages.」

「In addition, revenue increased as proposals to help customers reduce their cost ratios led to an increase in items delivered, while operating profit declined due to higher delivery and other costs.」

「During the nine-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the six-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「During the three-month cumulative period, there were no new business or other risks, nor any material changes to the business or other risks described in the securities report for the previous fiscal year.」

「In addition, difficulty in sourcing and securing food ingredients is expected to continue due to the impact of foreign exchange rates, persistently high logistics costs, and rising demand in emerging markets.」