For commercial activities, we launched new products and strengthened our response to diversifying consumer needs. While we implemented measures to grow volume, we also worked to improve profitability. As part of our profitability-focused pricing strategies, we revised the shipping prices of large PET bottle products in May and the suggested retail prices of small package products in October. In the areas of manufacturing and logistics, we have been working to establish a system that can flexibly respond to sudden changes in demand to realize a stable product supply. To achieve this, we revamped our Sales and Operations Planning (S&OP) process. Additionally, in July 2022 operations started at our new automated Akashi Mega Distribution Center (DC), which has one of the largest storage and shipment capacities of the Coca-Cola System in Japan. Together with the Saitama Mega DC, which began operations in 2021, it will focus on stable operations to improve our logistic network, which is a basis for our sustainable growth. We also worked on initiatives to develop a supply chain organization that can ensure high-quality products at the lowest cost.Despite short-term volume declines due to the price revisions, our sales volume in 2022 grew strongly, increasing by 3% from the previous year. This was a result of our effective commercial activities that captured growth opportunities from the recovering traffic. Revenue increased by 2.7% year-on-year to 807.4 billion yen owing to volume growth and improved wholesale revenue per case through the 23Message From the CFOInitiatives for building our revenue baseand achieving low-cost operations areyielding resultsIn 2022, although there were increased demand opportunities with the recovery in traffic and the hot summer, the business environment remained challenging. This was because of external factors, mainly a significant increase in the cost environment. In such circumstances, we positioned 2022 as a year to build a foundation for sustainable growth. We focused efforts on strengthening our earnings foundation and achieving low-cost operations.Enhancing corporate value:Building a stronger business foundation and improving profitabilityBjorn Ivar UlgenesRepresentative Director and Vice President, CFO
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