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Message

"Molting" for growth

Developing a highly profitable system and sowing seeds of growth

In the year ended March 2018 (the current year) we "sowed the seeds of growth" while continuing "the development of a highly profitable system" under the managerial policy of "brand value management." As for "the development of a highly profitable system," good performance was observed in products with high added value and high unit price, such as our main air care scented products (deodorizers and air fresheners) "Shoshu-Riki" Premium Aroma series, "SHALDAN" FRAGRANCE, and our new cloth care products (mothproofing agents), we also launched a new brand of cleaner "Senjo-Riki" and net sales were 48.6 billions of yen (a 6% increase from the previous fiscal year). As for profit, due to an increase in sales quantity of products with high added value and efforts to reduce returns and production costs, there was an increase in sales and profit, with operating income at 3.5 billions of yen (22% increase), ordinary income at 3.5 billions of yen (20% increase), and profit attributable to owners of parent at 2.4 billions of yen (33% increase). For "sowing the seeds of growth," we launched "Yells" a new brand of nursing-care goods for meeting the needs in the ageing society and "Aroma Sapuri" a product using aroma oil for new healthy habits.

From a "profit improvement phase" to a "scale expansion phase"

From the year ending March 2019 (this year), we will start a new medium-term business plan. We will transition from the "profit improvement phase" up until the current year to the new "scale expansion phase." This year, we will raise the seeds which were sown for growth. The following five points are important points for the development of the new medium-term business plan.
(Important points for development in the new medium-term business plan)
1. No.1 share of existing business
2. Domestic new field/new market
3. Overseas business
4. Thermal care
5. Creating a structure for growth
For "No.1 share of existing business," we are aiming for the No.1 share not only in cloth care products (mothproofing agents) and humidity care products (dehumidifiers), but also in niche products in the existing domestic market such as air care products (deodorizers and air fresheners).
For "domestic new field/new market," we are making developments in growing fields such as products for industrial use or for usage in nursing care sites, within the clear forest business, and in EC channels.
For "overseas business," we are aiming for global development, narrowing down the target areas of our strategies, and focusing on specific businesses.
For "thermal care," with the three keywords: existing, new, and overseas, we are developing a new thermal business.
For "creating a structure for growth," we will reevaluate our production system, reform our working style, and work on the development and diversity of our personnel.

The "future" is not on the extension line of "now"

While the current year has been one where there was an update in our past records for Profit, it has also been a year where we have realized various issues. For us to advance further, all staff must step outside of the box and greatly develop themselves. We appreciate your increased and continued support.

August 2018
Takako Suzuki
President and Chief Operating Officer