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- 00:19:49.6 We also developed a new product consisting of large-sized sheets.
Thus, our clients have told us only good news.
On the other hand, I have said that we shouldn’t become monopolistic. I said within the company that, if we became a monopoly, what would we do then?
If reality surfaces, competitors would stop price competition. Price increases are not an option where we have withdrawn from price competition. Competitors would say that they would withdraw from price competition.
When freight charges rise and raw material costs increase, many things will naturally surface in most cases. At that point, what hand could we extend to the industry?
In the current environment, purchasers will switch from competitors to FP Corporation on their own. They will switch if prices are the same. This situation has started to manifest itself. Therefore, I think we can make a revision, probably in September. I think that the loss incurred by this unprofitable segment will be reduced.
What are facing the harshest situation in this environment now are egg cartons. As for other products, we did not enter bids for trays whose prices declined due to bids because we suffered a loss.
This being the case, we announced a very unsatisfactory increase in sales and profits for the current fiscal year. There was no help for it. The environment is not bad. It is rather good. However, in the current situation, we can’t announce an optimistic outlook for an increase in sales and profits.
The market has not shrunk, as you know. It has not shrunk. Our users have opened an excessive number of stores. If stores are opened before the increase in the consumption tax, wholesalers’ sales will increase first. Wholesalers will earn profits from these increased sales at the time of the store openings.
In that respect, wholesalers’ business won’t suddenly become stagnant. Wholesalers that are the local leading companies tend to have such sales as well as funding sources. Therefore, we don’t need to worry too much about the creditworthiness of our sellers.
However, it would be hard to raise our prices. This environment is a reality. I will explain why this is based on our costs.
There are many companies that couldn’t do anything if we withdrew, although they would be angry if we said this. We cannot use this weapon.
