Progress status of midterm management plan
Showa Sangyo <2004> achieved sales of 18,000 kiloliters in the first year of its current midterm management plan ending in March 2024. In the basic strategy 1 "Strengthening foundational businesses," the company surpassed its goal by achieving a 3.9 billion yen increase in operating profit compared to the target of a 2.7 billion yen increase over the 2023 fiscal year. Business scale expansion and profit enhancement through group coordination, as well as the expanded sales of value-added products through optimized product mix and differentiation strategies, significantly contributed. From the fiscal year ending in March 2025 onwards, leveraging sales structures by business type and customer segment, Showa Sangyo aims to further evolve its grain solutions by providing various categories of products tailored to customer needs in a one-stop manner. Additionally, cost reduction efforts are ongoing through continued group-wide business structure reform. Progress in strengthening foundational businesses as of the fiscal year ending in March 2025 continues to demonstrate the results of sales force enhancement through organizational restructuring. Proposal-based sales combining multiple products to customers have been steadily increasing, leading to more successful deals. The effects of transitioning to a one-stop sales organization have also enhanced the proposal capabilities of sales personnel and contributed to talent development within the sales organization. The accumulation of expertise is progressing positively through collaborative proposal and knowledge sharing on multiple products by each sales representative. In terms of business expansion, the company obtained Halal certification for some products (certification system verifying products suitable for Islamic markets) and began exporting to Singapore starting in April 2024. Although the contribution to the fiscal year ending in March 2025 performance is not clear at this stage, the company is steadily building up achievements.
(Writer: FISCO analyst Tomoichi Murase)
