Soaring Procurement Costs for Energy and Sugar-Production Materials Due to the Situation in Ukraine and Other Factors
First written in FY2022. 6 of 12 entries say "Worsened", first in FY2023-Q2. Latest entry: FY2026.
Nitten moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2022: 21 of 36 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Although manufacturing costs, including energy costs, declined, operating income was reduced by increased sales of low-margin raw sugar and higher product transportation costs associated with the increase in sales, among other factors.」
It states that manufacturing costs, including energy costs, declined, partially easing the cost pressure from soaring material and energy prices. However, higher transportation costs and other expenses continue to affect profit. - 2026-05-13RestatedEarnings
「Looking ahead, the prices of various materials are expected to remain high, and manufacturing costs for the Company’s products, including sugar, are expected to remain elevated.」
The Company expects high prices for materials and elevated manufacturing costs to continue into the next fiscal year. - FY2026-H1MitigatedAnnual report
「Feed business revenue decreased 2.7% year on year to ¥5,088 million, while lower raw material prices and cost reductions resulted in an operating loss of ¥103 million, compared with an operating loss of ¥183 million in the same period of the previous year.」
The pressure on Feed business profit from soaring raw material prices has eased from the same period of the previous year due to lower raw material prices and cost reductions. However, an operating loss is still being recorded. - FY2025WorsenedAnnual report
「There is an increasing need to properly incorporate changes in the environment surrounding sugar beets, including the sharp decline in planted acreage and persistently high manufacturing costs resulting from higher fuel prices and prices of other sugar manufacturing inputs.」
It explicitly identifies persistently high manufacturing costs caused by the sharp decline in planted acreage and higher fuel and sugar manufacturing input prices as factors necessitating a revision of the plan targets. - FY2024WorsenedAnnual report
「Although we worked to maintain the quality of sugar beet raw materials and prevent deterioration through rigorous quality control, and to reduce the amount of sugar manufacturing materials used, manufacturing costs increased significantly due to persistently high energy prices and other factors.」
Although quality control was strengthened and material usage was reduced, manufacturing costs increased significantly due to persistently high energy prices and other factors, causing the Sugar business's operating loss to widen from the previous period. - FY2024-Q2WorsenedAnnual report
「Feed business revenue increased 3.7% year on year to ¥5,206 million, but the business posted an operating loss of ¥676 million, compared with an operating loss of ¥230 million in the same period of the previous year, mainly because of an inventory valuation loss on fuel inventories.」
Risks related to higher energy and sugar manufacturing material costs have materialized as inventory valuation losses on fuel stocks, causing the Feed business's operating loss to widen from the same period of the previous year. - FY2024-Q1MaterialisedAnnual report
「Revenue for the first quarter of the current consolidated cumulative period increased 7.1% year on year to ¥16,455 million, mainly due to higher sales in the sugar and feed businesses. However, an inventory valuation loss on fuel inventories used in beet sugar production and other operations was recorded in cost of sales, causing ordinary profit to decrease 71.6% to ¥210 million and profit attributable to owners of the parent to decrease 75.9% to ¥118 million.」
Risks related to soaring resource and raw material prices have materialized in the form of inventory valuation losses on fuel stocks used to produce beet sugar and other products, significantly reducing ordinary profit and quarterly net income attributable to owners of the parent. - FY2023WorsenedAnnual report
「Although we worked to maintain the quality of sugar beet raw materials and prevent deterioration through rigorous quality control, and to reduce the amount of sugar manufacturing materials used, manufacturing costs increased significantly due to soaring energy prices resulting from the situation in Ukraine, the weaker yen and other factors.」
It states that sugar manufacturing costs increased significantly due to soaring energy prices against the backdrop of the situation in Ukraine and the weaker yen. - FY2023-Q3WorsenedAnnual report
「During the first nine months of the current fiscal year, Japan's economy was expected to recover as measures to control the infectious disease were balanced with economic activity under the transition to living with COVID-19. However, the outlook remained uncertain due to soaring raw material and energy prices resulting from the prolonged situation in Ukraine and sharp exchange-rate fluctuations, among other factors.」
Against the backdrop of the prolonged situation in Ukraine and other factors, raw material and energy prices remain high and exchange rates continue to fluctuate sharply, further worsening the cost environment for the Sugar and Feed businesses. - FY2023-Q2WorsenedAnnual report
「During the cumulative second quarter of the fiscal year, Japan's economy has been gradually recovering as the country transitions to a new phase of living with COVID-19, but challenges including globally rising prices and uncertainty over energy supplies remain, and the outlook continues to be uncertain. Sales in the Feed segment increased 11.9% year on year to ¥5,020 million, but the impact of soaring raw material prices resulted in a segment loss of ¥230 million, compared with segment profit of ¥171 million in the same period of the previous year.」
Amid continued global inflation and uncertainty over energy supplies, soaring raw material prices have affected results in practice, resulting in a ¥230 million loss in the Feed business. - FY2023-Q1MaterialisedAnnual report
「During the first quarter of the current consolidated fiscal year (1 April 2022 to 30 June 2022), the Japanese economy remained in an uncertain situation due to continued restrictions on economic activity resulting from the prolonged impact of COVID-19, as well as a sharp rise in raw material prices and rapid yen depreciation attributable to the situation in Ukraine and other factors.」
A sharp rise in raw material prices resulting from the situation in Ukraine and other factors has occurred and is affecting manufacturing costs and profit in the sugar and feed businesses. - FY2022First statedAnnual report
「The company procures much of the fuel and other materials required to manufacture beet sugar from overseas. As a result, international supply and demand may tighten and market prices may rise due to geopolitical events in exporting countries. Together with exchange-rate movements and logistics conditions, these factors may have a significant impact on procurement costs and pose a risk to the performance of the sugar business.」
The company has identified for the first time the risk of higher procurement costs for sugar-manufacturing materials, including fuel procured overseas, due to geopolitical events, tight supply and demand, higher market prices, exchange rates and logistics conditions. The text also describes surging energy costs and higher manufacturing costs due to the situation in Ukraine and other factors.