11.21.23
Toyo Ink SC Holdings Co., Ltd. announced financial results for the first nine month of fiscal year 2023. Consolidated net sales for the nine months of fiscal 2023 were ¥238,235 million ($1.605 billion), an increase of 01.4% over 2022’s first nine months. Operating profit was ¥9,131 million ($61 million), up 72% from 2022.
Sales in the Packaging Business were ¥62,431 million ($421 million), an increase of 0.5% from the first half of 2022. Operating profit was ¥2,575 million ($17.35 million), up 302% year on year.
“In the liquid ink products market in Japan, restrained purchases among consumers due to rising prices led to slow growth in demand for packaging materials for food products, and sales decreased compared to a year ago when there were customer inventory increases due to expectations of difficulties in procurement,” Toyo Ink noted. “Sales of products for cardboard boxes were also lackluster as demand for fruit and vegetable applications declined due to extreme heat and surging prices.
“Overseas, demand in India was solid and sales also held firm; however, sales of products for food packaging were weak due to sluggish consumption in China,” the report continued. “Profitability also improved both in Japan and overseas thanks to progress with the revision of selling prices in response to rising raw material prices. In the gravure cylinder platemaking business, while sales of products for packaging were firm, partly owing to efforts to capture new demand, sales of precision platemaking related to electronics were weak.”
Sales in the Printing and Information Business were ¥56,404 million ($380 million), up 0.2%, while operating profit was ¥941 million ($6.3 million), an increase of 27.5%.
“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 attributable to efforts to bolster sales,” Toyo Ink noted.
“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, sales of functional coatings for paper containers and packaging increased,” the company added.
Sales in the Packaging Business were ¥62,431 million ($421 million), an increase of 0.5% from the first half of 2022. Operating profit was ¥2,575 million ($17.35 million), up 302% year on year.
“In the liquid ink products market in Japan, restrained purchases among consumers due to rising prices led to slow growth in demand for packaging materials for food products, and sales decreased compared to a year ago when there were customer inventory increases due to expectations of difficulties in procurement,” Toyo Ink noted. “Sales of products for cardboard boxes were also lackluster as demand for fruit and vegetable applications declined due to extreme heat and surging prices.
“Overseas, demand in India was solid and sales also held firm; however, sales of products for food packaging were weak due to sluggish consumption in China,” the report continued. “Profitability also improved both in Japan and overseas thanks to progress with the revision of selling prices in response to rising raw material prices. In the gravure cylinder platemaking business, while sales of products for packaging were firm, partly owing to efforts to capture new demand, sales of precision platemaking related to electronics were weak.”
Sales in the Printing and Information Business were ¥56,404 million ($380 million), up 0.2%, while operating profit was ¥941 million ($6.3 million), an increase of 27.5%.
“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 attributable to efforts to bolster sales,” Toyo Ink noted.
“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, sales of functional coatings for paper containers and packaging increased,” the company added.