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- 00:07:42.0 Raw material prices are currently rising. How can we survive? There are too many supermarkets right now. Some supermarkets have become very large due to M&A. However, in general, supermarkets are facing a very difficult time. Almost no existing supermarkets produced positive results. We deal with this industry as well as convenience stores. Convenience stores are almost saturated. Under these circumstances, we must continue to increase our sales and income. The environment is very tough. As mentioned below, what we have to do first is apologize to you, as we significantly underperformed our targets. We could not predict the extent of the yen depreciation and the rise in the cost of raw materials.
- 00:08:36.0 The raw materials, or sheets, that we manufactured in this environment were Multi FP. Sales of foam Multi FP lids and containers increased by 220,000?230,000 cases. Probably about 100,000 cases are general-purpose products, whose price is lower than their cost. Therefore, they can’t help us to be competitive on price. Under these circumstances, we replaced our loss-making products with profitable products without cutting back on our operations. However, these are still our results. How unusual is the current industry? From our perspective it is unusual. But this is the current situation. Sales for new products introduced to the market in March used to rise considerably in July. Actual shipments had been increasing at a good pace up until yesterday, after the end of the consecutive holidays in May. Given this pace, I believe we will achieve our current forecast, even if we don't fully raise our sales prices. Monthly costs increased about 400 million yen, including electricity charges and raw material costs. It is by no means impossible to offset our costs just through new products. In the first half, it is difficult to raise our sales prices, so sales prices would not go up in the first half. Our current forecast estimates that sales prices will rise during the Bon Festival in the second half.
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