President Message

Strengthening of Brand Power to Grow Further

From Sowing the Seeds of Growth to its Nurturing

In the year ended March 31, 2019, under the management policy “Brand Value Management,” we started the new medium-term management plan and shifted our focus “From Sowing the Seeds of Growth to its Nurturing” As a result, products with high unit price and high added value continued to show a growth, but due to the disposable warmers market stagnating because of the effects a record-setting mild winter and the spring season peak for mothproofing agents extending into the next year due to seasonal factors, we recorded net sales of 47.7 billions of yen (2% decrease from the previous year).

As for profits, the investment made for growth could not be completely recouped due to the recorded sales diverging from the initial plan, which resulted in a decrease in sales and profit, with operating income of 2.8 billions of yen (18% decrease from the previous year), ordinary income of 2.7 billions of yen (22% decrease from the previous year) and profit attributable to owners of parent of 1.8 billions of yen (25% decrease from the previous year).

Regarding the nurturing of a new field for growth, we released a counter-pollen product through our healthcare brand MoriLabo, which uses Clear Forest technology.

Initiatives Taken in the Year Ending March 31, 2020

This will be the second year of our new medium-term management plan. Looking back at the initial year, we took note of the fact that (1) we could not complete the plans for Air Care and Overseas businesses, (2) we could not achieve the target sales of disposable warmers due to a mild winter, and (3) we could not fully recoup the investment for growth due to the increases in expenditure of some raw materials and SG&A expenses.

This year, after reflecting on the experiences of the previous year, we shall take initiatives regarding the following 5 important points.

(Important Points for This Year)

  • (1) Nurturing and strengthening of mainstay brand
  • (2) Domestic new field / new market
  • (3) Constructing an overseas foundation for growth
  • (4) Growing our thermal care business
  • (5) Creating a structure for growth

We shall continue with the strategies of the initial year regarding (1) Nurturing and strengthening of mainstay brand and (2) Domestic new field and new market. Under (3) Constructing an overseas foundation for growth, we shall review the foundation for our business in Thailand and plan a recovery. Under (4) Growing our thermal care business, the new factory started operating this term and the R&D and manufacturing systems have been put in order. We recognize this year as The Initial Year of Thermal Care and will raise the aforementioned business into a driver for growth. Finally, under (5) Creating a structure for growth, along with continuing with the reform of profit structures like capital investment aimed at growth, we shall also continue with the construction of a system for the future like work style reform and the formation of a diversified organization.

Strengthening of Brand Power to Grow Further

The year under review was a year in which we re-recognized various challenges. This year, we shall find solutions to those challenges, aim for further growth by strengthening our brand power with all our employees and break through our previous shell and continue growing. For that, we would appreciate your continued support.

June 2019
Takako Suzuki
President and Chief Operating Officer