08.16.23
Toyo Ink SC Holdings Co., Ltd. announced the first half financial results for the fiscal year ending June 30, 2023. Consolidated net sales for the first half of fiscal 2023 were ¥153,676 million ($1.063 billion), a decrease of 0.7% over 2022’s first half. Operating profit was ¥4,752 million ($33 million), up 3% from 2022.
Sales in the Packaging Business were ¥40,361 million ($279 million), an increase of 0.9% from the first half of 2022.
“In the liquid ink products market in Japan, consumer pullbacks due to rising prices spread to daily necessities, leading to slow growth in demand for packaging materials for food products; however, demand for packaging materials for seasonal products and souvenirs was solid, reflecting the lifting of COVID restrictions,” Toyo reported. “Sales of products for cardboard boxes used in beverage and processed food applications were also lackluster as consumers became more thrifty.
“Overseas, demand in India was solid and sales also held firm; however, in China sales of products for food packaging were weak due to sluggish consumption. Profitability also improved both in Japan and overseas thanks to progress with the revision of selling prices in response to rising raw material prices.
“As a result, net sales for this segment as a whole increased to ¥40,361 million (up 0.9% year on year), and operating profit increased to ¥1,418 million (up 201.2% year on year).
Sales in the Printing and Information Business were ¥36,344 million ($251 million).
“While domestic sales of products for flyers, advertising, and publishing were sluggish due to the continued structural contraction of the information-related printing market, sales of products for paper containers and packaging were firm partly due to an upturn in consumption driven by travel-related demand,” Toyo reported.
“In face of persistently high energy and raw material costs, the Group continued to reduce costs through collaboration with competitors and business structure reforms while at the same time making revisions to selling prices to cover cost increases the Group could not absorb through its own efforts. In overseas markets, sales were lackluster, partly due to economic downturn in China caused by property market woes and weak exports; however, progress was made in expanding sales of functional coatings for paper containers and packaging.
“As a result, net sales for this segment as a whole increased to ¥36,344 million (up 0.0% year on year); however, the segment reported an operating loss of ¥41 million (compared with operating profit of ¥588 million in the same period of the previous year) due to stubbornly high energy costs and raw material prices,” Toyo added.
Sales in the Packaging Business were ¥40,361 million ($279 million), an increase of 0.9% from the first half of 2022.
“In the liquid ink products market in Japan, consumer pullbacks due to rising prices spread to daily necessities, leading to slow growth in demand for packaging materials for food products; however, demand for packaging materials for seasonal products and souvenirs was solid, reflecting the lifting of COVID restrictions,” Toyo reported. “Sales of products for cardboard boxes used in beverage and processed food applications were also lackluster as consumers became more thrifty.
“Overseas, demand in India was solid and sales also held firm; however, in China sales of products for food packaging were weak due to sluggish consumption. Profitability also improved both in Japan and overseas thanks to progress with the revision of selling prices in response to rising raw material prices.
“As a result, net sales for this segment as a whole increased to ¥40,361 million (up 0.9% year on year), and operating profit increased to ¥1,418 million (up 201.2% year on year).
Sales in the Printing and Information Business were ¥36,344 million ($251 million).
“While domestic sales of products for flyers, advertising, and publishing were sluggish due to the continued structural contraction of the information-related printing market, sales of products for paper containers and packaging were firm partly due to an upturn in consumption driven by travel-related demand,” Toyo reported.
“In face of persistently high energy and raw material costs, the Group continued to reduce costs through collaboration with competitors and business structure reforms while at the same time making revisions to selling prices to cover cost increases the Group could not absorb through its own efforts. In overseas markets, sales were lackluster, partly due to economic downturn in China caused by property market woes and weak exports; however, progress was made in expanding sales of functional coatings for paper containers and packaging.
“As a result, net sales for this segment as a whole increased to ¥36,344 million (up 0.0% year on year); however, the segment reported an operating loss of ¥41 million (compared with operating profit of ¥588 million in the same period of the previous year) due to stubbornly high energy costs and raw material prices,” Toyo added.