Points of Business Performance

The Company aims to become a “strong company capable of sustainable growth, using food as a means of resolving social issues” under the four-year Mid-Term Management Plan starting from the fiscal year ended December 2022. The Company will work on the basic strategy that is to achieve sustainable growth by taking four actions (“1. Promote behavioral change in terms of vegetable intake,” “2. Change to fan-based marketing,” “3. Pursue both organic and inorganic growth,” and “4. Strengthen the Group's management foundation and foster a culture for tackling challenges”) that are organically connected, in an effort to further enhance corporate value. In the fiscal year under review (January 1 to December 31, 2023), the Company continued to face a severe management environment amid surging raw materials prices worldwide. Japan, in particular, continued to face an uncertain situation regarding the future outlook because of consumers’ heightened awareness toward cutting costs caused by inflation. In the Domestic Processed Food Business, prices of certain products in vegetable beverages and tomato condiments were revised in response to a substantial increase in cost of sales including mainstay raw materials. Although demand dampened after these revisions, sales were strong in the food category and category of institutional and industrial use, leading to higher revenue. Meanwhile, soaring raw materials prices resulted in a decline in core operating income. In contrast, the International Business recorded higher profit on higher revenue from rising selling prices of tomato paste and strong sales to food service companies. In addition, in the Domestic Agri-Business, impairment losses on fixed assets of 2,236 million yen were recorded as a result of comprehensively taking into account uncertainties in the fresh tomatoes market due to weather conditions and rising costs associated with soaring energy and fertilizer prices. Accordingly, revenue in the fiscal year under review increased to 224,730 million yen, up 9.3% year on year, and core operating income increased to 19,476 million yen, up 52.1% compared to the previous fiscal year. Operating income increased to 17,472 million yen, up 37.0% year on year, and net income attributable to shareholders of parent increased to 10,432 million yen, up 14.4% compared to the previous fiscal year.