Household insecticides and repellents Segment

In Japan, the demand period for household insecticides and repellents was extended over the latter half of the usual sales season due to prolonged summer heat waves that lasted longer compared with the previous year. Under such conditions, in addition to measures to curb product returns the Group has been working on as a management priority, the favorable weather conditions helped reduce the total amount of product returns, which in turn contributed to earnings improvements. Sales were also buoyed by increased sales of the mainstay products for cockroaches and other insect pests, and the launch of MAMO ROOM for Cockroaches in the MAMO ROOM brand, which helped uncover new demand for the fall and winter season. Market share
increased to 56.9% (Company estimate, +0.6 points versus 2022), as the effects of price revisions began to materialize.
Overseas, sales were sluggish in China due to a slowing economic recovery, but sales continued to grow mainly in Thailand and Vietnam.
As a result of the above, sales in this category totaled 62,031 million yen (+4.5% year-on-year).

Household Products segment

In oral hygiene products, sales of Mondahmin Peppermint and other general-use products decreased year-on-year due to intensifying market competition caused by changes in consumer needs. Meanwhile, sales of the all-in-one mouthwash Mondahmin Premium Care increased, and sales of Mondahmin Habit Pro mouthwash sold exclusively through dental clinics also grew on the back of the Company’s progress in cultivating partner dental clinics. As a result, overall oral hygiene product sales amounted to 8,364 million yen (+2.1% year-on-year).
For bath salts, while the use of bath salts has become more widespread, the market shrank year-on-year due to consumers’ having greater opportunities to go out with the downgrading of COVID-19 to a Class 5 infectious disease and the impact of the weather, namely the summer heat waves and warmer winter temperatures. In line with such market trends, the Group’s performance lagged, with bath salts sales amounting to 26,041 million yen (-3.4% year-on-year).
In other household products, sales of refrigerants and coolants grew as countermeasures for heat stroke during the summer. Sales of the Sukki-ri! series of deodorizing air fresheners and Raku Hapi series of cleaning products also contributed, but sales of masks for household use and insect repellents for clothing fell year-on-year, resulting in other household products sales of 32,793 million yen (-1.0% year-on-year).
As a result of the above, sales in this category totaled 67,199 million yen (-1.6% year-on-year).

Pet products and others segment

In pet products, while the pandemic pet boom showed signs of winding down, the pet products market continued holding firm backed by heightened awareness for pet health among pet owners. Against this backdrop, sales of pet care products such as premium food and cat litter increased, leading to sales in this category amounting to 9,776 million yen (+10.6% year-on-year).

Companies are strengthening in-house hygiene management, prompted by the revisions of relevant laws and regulations in Japan and the trend toward the international harmonization of safety standards for food, pharmaceuticals, and healthcare. Against this backdrop, demand for the Company’s quality hygiene management services utilizing its specialized knowledge, technology, and expertise continued holding firm, especially among its core customers—those involved in the operation of food, pharmaceutical, and package material production facilities. Meanwhile, personnel expenses and material and equipment costs rose at an accelerated pace due to the protracted Russia-Ukraine war.
Under these circumstances, the Company actively invested in the construction of an internal structure, including for the installation and development of systems aimed at cultivating human resources and improving operational efficiency, to better respond to customer needs. At the same time, we stepped up efforts in technology development, including by engaging in industry academia-government collaborations, to provide sanitary management services that stand apart from competitors’ offerings, and in doing so maintained existing contracts while acquiring new ones and secured an appropriate level of profit. We implemented various measures targeting the pharmaceutical and regenerative medicine industries in particular, and continued strengthening audit and consulting operations related to food safety management. Further, we reviewed the prospects for business expansion and new business development to tackle various environmental issues in a range of fields, including agriculture, with the aim of contributing to creating an environment that will lead to a more prosperous future.
In the fiscal year ended December 31, 2023, while performance was affected by a higher cost ratio and an increase in personnel expenses attributed to active investment in human resources, the number of annual contracts grew, boosting overall segment results.
Accordingly, sales in the General Environment and Sanitation Business amounted to 29,073 million yen (+3.9% year-on-year) and the segment income (operating income) to 1,451 million yen (+1.5% year-on-year).
For more information about our General Environment and Sanitation Business, please visit the Earth Environmental Service Co., Ltd. website.