Risk of fluctuations in international raw sugar prices, foreign exchange rates and the pass-through of costs to selling prices
First written in FY2018. 7 of 12 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Ensuiko Sugar Refining moved to the "Worse" side of this theme in 2021.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「In the previous fiscal year, we implemented a price revision, namely a price reduction, for the first time in approximately 7 years in response to declines in international market prices and other factors. We will continue to focus on thorough cost management and sales at appropriate prices while working to reactivate the market.」
The response to rising costs and price pass-through risks has been framed not only as raising prices, but also as reactivating the market through price reductions in response to falling international market prices, cost management and sales at appropriate prices. - FY2025Improved earnings through appropriate pricingAnnual report
「In addition, as a result of efforts to procure and sell at appropriate prices, revenue from the sugar business as a whole was ¥30,864 million, up 4.1% from the previous consolidated fiscal year, and segment profit was ¥3,858 million, up 67.8%, with both reaching record highs.」
While risks of higher costs due to raw material prices, foreign exchange rates and other factors continued, revenue and profit from the sugar business reached record highs through procurement and sales at appropriate prices. - FY2024-Q2Revenue growth through selling at appropriate prices amid high costsAnnual report
「In domestic sales of refined sugar and other sugar products, sales volumes of both household-use and commercial-use products remained sluggish because inbound tourism and tourism-related demand had not returned to pre-pandemic levels, despite expectations of a recovery in demand as foot traffic returned. However, revenue exceeded that of the same quarter of the previous year as the company worked to sell at appropriate prices reflecting market conditions.」
As cost increases due to raw sugar prices, ocean freight rates and the depreciation of the yen continued, revenue exceeded the same period of the previous year through selling at appropriate prices despite sluggish sales volume. - FY2024-Q1WorsenedAnnual report
「Amid soaring raw material prices, revenue exceeded the same quarter of the previous year as the company worked to sell at appropriate prices.」
It states that, as raw material prices continue to soar, the company is in a situation requiring a response to selling at appropriate prices. - FY2023WorsenedAnnual report
「At present, the procurement price of raw materials is being affected by the depreciation of the yen, global climate change such as droughts, and soaring energy costs resulting from geopolitical issues in Ukraine.」
It explicitly states that the depreciation of the yen, climate change such as droughts, and soaring energy costs due to the situation in Ukraine are affecting raw material procurement prices. - FY2023-Q3WorsenedAnnual report
「The domestic wholesale price of sugar, as published in The Nikkei, for a 1 kg large bag of white sugar, started the period at ¥204–205 and rose to ¥216–217 in early August as a result of soaring overseas raw sugar prices, higher ocean freight rates and the rapid depreciation of the yen, ending the third quarter cumulative period at that level.」
Cost pressure from overseas raw sugar prices, ocean freight rates and the sharp depreciation of the yen continues to appear as an increase in domestic market prices to ¥216–217. - FY2023-Q2WorsenedAnnual report
「The domestic wholesale price of sugar, as published in The Nikkei, for a 1 kg large bag of white sugar, started the period at ¥204–205 and rose to ¥216–217 in early August as a result of soaring overseas raw sugar prices, higher ocean freight rates and the rapid depreciation of the yen, ending the second quarter cumulative period at that level.」
Cost pressure from overseas raw sugar prices, ocean freight rates and the sharp depreciation of the yen has appeared as an increase in domestic market prices to ¥216–217, and risks concerning procurement and selling prices continue. - FY2022-Q3WorsenedAnnual report
「As a result, revenue for the sugar business as a whole was ¥17,826 million, up 6.2% from the same quarter of the previous year, while segment profit was ¥1,148 million, down 21.1% due to higher raw material costs and other factors.」
Higher raw material and other costs have materialized as lower profit from the sugar business, and the impact of risks concerning cost increases and price pass-through continues. - FY2022-Q2WorsenedAnnual report
「The domestic wholesale price of sugar, as published in The Nikkei, for a large bag of white sugar, started the period at ¥192–193 and ended the second quarter cumulative period at ¥198–199 as a result of soaring overseas raw sugar prices and higher ocean freight rates.」
It specifies that, in addition to soaring overseas raw sugar prices, higher ocean freight rates and rising raw material and logistics costs are affecting domestic prices and profit from the sugar business. - FY2021WorsenedAnnual report
「International food prices, including grain prices, and ocean freight rates have risen, and this upward trend is unavoidable for the time being while the COVID-19 pandemic remains unresolved internationally.」
It newly specifies the difficult environment of rising international food prices and ocean freight rates due to the COVID-19 pandemic, and the difficulty of passing higher raw material costs through to prices. - FY2019RestatedAnnual report
「The procurement price of overseas raw sugar fluctuates due to overseas market prices and foreign exchange rates. Changes in procurement prices affect selling prices. If the Group cannot absorb these changes through its own efforts, or cannot appropriately reflect them in selling prices due to price competition or other circumstances, its operating results and financial position may be affected.」
The difficulty of passing through changes in procurement prices due to overseas raw sugar prices and foreign exchange rates to selling prices continues to be identified as a risk. - FY2018First statedAnnual report
「Changes in procurement prices affect selling prices. If the Group cannot absorb these changes through its own efforts, or cannot appropriately reflect them in selling prices due to price competition or other circumstances, its operating results and financial position may be affected.」
It shows the impact if changes in procurement prices due to overseas market prices and foreign exchange rates cannot be appropriately passed through to selling prices.