Restrictions on the General Sale of Additional Beet Sugar and Inventory Valuation Loss
First written in FY2018-Q3. 5 of 11 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2026.
Nitten moved to the "Worse" side of this theme in 2018, 6 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 39 companies on the "Worse" side.
37 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「(Of this amount, reduction in the carrying amount of inventories related to the Beet Sugar business) 1,572 Ditto 1,104 Ditto」
The reduction in the carrying amount of inventories related to the Beet Sugar business declined from ¥1,572 million in the previous fiscal year to ¥1,104 million, reducing the impact of inventory valuation losses. However, the operating loss in the Sugar business widened. - 2026-05-13MitigatedRevisions to earnings forecasts
「Operating profit, ordinary profit and profit attributable to owners of the parent exceeded the forecasts, mainly because the inventory valuation loss on raw sugar inventories for beet sugar decreased.」
The decrease in the inventory valuation loss on raw sugar inventories for beet sugar reduced the impact on earnings relative to the previous forecast. - FY2025WorsenedAnnual report
「Of the reductions in the carrying amount of inventories held for ordinary sale due to declining profitability, included in cost of sales, the reduction in the carrying amount of inventories related to the Beet Sugar business increased from ¥30 million to ¥75 million.」
The reduction in the carrying amount of inventories related to the Beet Sugar business increased from ¥75 million in the previous fiscal year to ¥1,572 million in the current fiscal year, with the risk of valuation losses on raw sugar inventories becoming substantially apparent. - FY2024WorsenedAnnual report
「Of the reductions in the carrying amount of inventories held for ordinary sale due to declining profitability, included in cost of sales, the reduction in the carrying amount of inventories related to the Beet Sugar business increased from ¥30 million to ¥75 million.」
The reduction in the carrying amount of inventories related to the Beet Sugar business increased from ¥30 million in the previous fiscal year to ¥75 million, and the impact of inventory valuation losses widened again. - FY2023MitigatedAnnual report
「(Of this amount, reduction in the carrying amount of inventories related to the Beet Sugar business) 461 Ditto 30 Ditto」
The reduction in the carrying amount of inventories related to the Beet Sugar business declined from ¥461 million in the previous fiscal year to ¥30 million, easing the impact of inventory valuation losses. - FY2022WorsenedAnnual report
「In addition, the supply-demand balance for beet sugar has been uneven in recent years, resulting in an increase in raw sugar inventories. Revenue in the Sugar segment was ¥37,809 million, up 7.0% from the previous fiscal year. Despite efforts to reduce costs, the segment posted a loss of ¥331 million, compared with a loss of ¥716 million in the previous fiscal year, partly due to higher storage costs resulting from raw sugar inventories.」
Increases in raw sugar inventories and storage costs continued to weigh on the Sugar business. Although the loss narrowed from the previous fiscal year, the impact of the supply-demand imbalance continued. - FY2020WorsenedAnnual report
「Sugar segment sales were ¥37,729 million, down 1.6% from the previous fiscal year, and the segment posted a loss of ¥613 million, compared with a segment loss of ¥470 million in the previous fiscal year, largely due to sluggish selling prices and the impact of inventory valuation losses on beet sugar.」
The impact of inventory write-downs on beet sugar continued, and the Sugar segment loss widened from the previous fiscal year. - FY2020-Q3MitigatedAnnual report
「Earnings improved as the inventory write-down on beet raw sugar declined from the same period of the previous year and through cost reductions, resulting in a segment loss of ¥230 million, compared with a segment loss of ¥1,229 million in the same period of the previous year.」
The inventory write-down on beet raw sugar declined year on year, and the Sugar segment loss narrowed from ¥1,229 million to ¥230 million. - FY2019-Q3WorsenedAnnual report
「Sugar segment sales were ¥29,430 million, down 2.2% from the same period of the previous year, as higher sales volumes were more than offset by lower selling prices accompanying the market decline. The segment posted a loss of ¥1,229 million, compared with a segment loss of ¥484 million in the same period of the previous year, due to higher sales of unprofitable beet raw sugar, impairment losses on beet raw sugar inventories, and increases in storage and transportation costs.」
Inventory write-downs related to the additional beet raw sugar production continued, and the Sugar segment loss widened from the same period of the previous year. - FY2019-Q1MaterialisedAnnual report
「Sugar segment sales were ¥10,200 million, up 2.7% from the same period of the previous year, due mainly to higher sales volumes resulting from increased production of 2017 beet sugar. However, the segment posted a loss of ¥115 million, compared with a segment profit of ¥689 million in the same period of the previous year, due to higher sales volumes of unprofitable beet raw sugar and lower selling prices.」
The increase in sales volume of the additional beet raw sugar production actually appeared as deteriorating profitability and a loss in the Sugar segment. - FY2018-Q3First statedAnnual report
「The 2017 crop of sugar beets is expected to produce substantially higher sugar output due to improvements in yield and sugar content. However, under the applicable system, the additional beet sugar production cannot be sold to the general market and will be low-margin raw sugar. Accordingly, the company recorded an inventory write-down on inventories at the end of the current quarter. In terms of earnings, the impact of this write-down and weak sugar prices resulted in a segment loss of ¥484 million, compared with segment profit of ¥545 million in the same period of the previous year.」
The expected increase in production resulting from improved yield and sugar content of raw sugar beets resulted in low-margin raw sugar due to restrictions on general sales under the applicable system, leading to an inventory write-down and a loss in the Sugar segment.