Declining Profitability of the Agricultural Materials Business Due to Intensifying Competition
First written in FY2018-Q2. 3 of 5 entries say "Worsened", first in FY2018. Latest entry: FY2022.
Kaneko Seeds moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2026: 38 of 83 companies on the "Worse" side.
33 other companies' latest entry also says "Worsened".
- FY2022WorsenedAnnual report
「In terms of profit, segment profit was ¥951 million, down 7.2% year on year, as competition intensified while demand failed to grow.」
With demand remaining stagnant, the decline in profitability caused by intensifying competition was reflected in results, and profit in the agricultural materials business declined 7.2%. - FY2020-Q2WorsenedAnnual report
「In terms of profit, segment profit was ¥74 million, down 36.6% year on year because profitability declined amid intensifying competition and logistics costs increased, among other factors.」
Declining profitability amid intensifying competition and higher logistics costs continued, resulting in a 36.6% year-on-year decline in segment profit in the agricultural materials business. - FY2018WorsenedAnnual report
「Gross profit increased only slightly. Although the high-margin seed business made steady contributions to profit growth, sluggish sales in the floriculture business, fewer orders for nutrient-solution cultivation plants in the horticultural materials business, and intensifying competition, a common factor affecting the horticultural materials and agricultural materials businesses, all reduced profit margins.」
Intensifying competition is explicitly identified as a common factor behind lower profit margins in the agricultural materials and horticultural materials businesses. - FY2018-Q3RestatedAnnual report
「In terms of profit, segment profit was ¥345 million, down 32.9% from the same quarter of the previous year because profitability declined amid intensifying competition.」
Declining profitability and lower profit in the agricultural materials business amid intensifying competition have continued. - FY2018-Q2First statedAnnual report
「In terms of profit, segment profit was ¥72 million, down 55.1% from the same quarter of the previous year because profitability declined amid intensifying competition.」
The company has, for the first time, explicitly stated that declining profitability amid intensifying competition had resulted in lower segment profit in the agricultural materials business.