Risk of fluctuations in raw material procurement prices driven by weather, supply and demand, and exchange rates
First written in FY2018. 15 of 24 entries say "Worsened", first in FY2022. Latest entry: FY2027-H1.
Morozoff Limited moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 45 of 64 companies on the "Worse" side.
21 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Surging raw material prices, particularly higher purchase prices for cocoa and nuts」
In addition to the previously identified increase in raw material prices such as cocoa, the company explicitly cites higher purchase prices for nuts, indicating that higher raw material costs are actually affecting profits. - FY2026WorsenedAnnual report
「Although the company worked to optimize staffing levels at its factories and pursued design changes and price revisions for some products, the cost of sales, affected by surging raw material prices, particularly cocoa, amounted to 51.7% of revenue, up 2.5 percentage points from the previous consolidated fiscal year.」
Raw material prices, particularly cocoa, continued to surge, and although the company implemented measures including design changes and price revisions, the cost-of-sales ratio rose 2.5 percentage points. - 2026-03-13WorsenedRevision of earnings forecasts
「We expect cost increases from higher depreciation expenses associated with the start-up of the new factory, continued increases in raw material prices, and higher personnel expenses due to increases in the minimum wage.」
In addition to an expected continuation of elevated raw material prices, the company expects higher depreciation expenses from the new factory and higher personnel expenses due to increases in the minimum wage. - FY2026-H1WorsenedAnnual report
「Continued surges in raw material prices, particularly cocoa, higher labor and transportation costs due to wage increases, and expenses recorded in connection with the complete outsourcing of the logistics functions in Funabashi last year」
Continued surges in raw material prices, particularly cocoa, as well as higher wages and transportation costs and expenses associated with the transition to outsourced logistics functions, became factors weighing on profits. - FY2025WorsenedAnnual report
「Raw material prices, particularly cocoa, continued to rise substantially, while energy costs such as electricity and gas and logistics costs also increased, causing the cost-of-sales ratio to continue rising. / The sharp increase in raw material prices, particularly cocoa, higher labor costs due to wage increases, higher transportation costs and expenses recorded in connection with the relocation of the Funabashi logistics center, among other factors,」
While the impact of suspended sales due to egg supply restrictions was eliminated, the sharp increase in raw material prices, particularly cocoa, and continued increases in energy and logistics costs intensified pressure from procurement price fluctuations. - FY2025-H1Egg supply restrictions are easing, while raw material prices continue to riseAnnual report
「The outlook remains uncertain, as consumer sentiment has weakened against a backdrop of further increases in raw material prices and persistently high energy prices, among other factors. / The company was able to resume normal sales this year of products whose sales had been suspended last year due to egg supply restrictions, among other factors,」
While products whose sales had been suspended due to egg supply restrictions could be sold normally, the company also reported further increases in raw material prices and persistently high energy prices, indicating that easing and worsening factors coexist within the procurement risk. - FY2025-Q1MitigatedAnnual report
「The company was able to resume normal sales this year of products whose sales had been suspended last year due to egg supply restrictions, among other factors,」
The company states that this year it was able to sell normally the products affected by egg supply restrictions that had led to suspended sales in the previous year, indicating that the impact of supply constraints has eased to some extent. - FY2024RestatedAnnual report
「Although the supply restrictions on eggs affected Western-style confectionery products, including the suspension of sales of some products, the company worked to secure supplies of custard pudding and actively sold seasonal puddings, cheesecakes and other products that use less egg.」
While the suspension of sales of some products due to egg supply restrictions continues, the company is reaffirming its response through securing supplies and selling products that use less egg. - FY2024-Q3RestatedAnnual report
「Although the supply restrictions on eggs affected Western-style confectionery products, including the suspension of sales of some products, the company worked to secure supplies of custard pudding and actively sold seasonal puddings, cheesecakes and other products that use less egg.」
While the suspension of sales of some products due to egg supply restrictions continues, the company is reaffirming its response through securing supplies and switching to products that use less egg. - FY2024-Q2WorsenedAnnual report
「Although the supply restrictions on eggs affected Western-style confectionery products, including the suspension of sales of some products, the company worked to secure supplies of custard pudding and actively sold seasonal puddings and other products that use less egg.」
The egg shortage has actually affected sales through supply restrictions and the suspension of sales of some products, bringing the raw material procurement risk to the fore. - FY2024-Q1WorsenedAnnual report
「The outlook remains uncertain, owing to factors including tight egg supplies due to avian influenza and inflation caused by surging raw material and energy prices.」
In addition to the existing risk of raw material price fluctuations, tight egg supplies due to avian influenza and surging energy prices have become apparent, increasing pressure from procurement and cost increases. - FY2023WorsenedAnnual report
「On the earnings side, raw material prices are expected to rise substantially, while logistics-related expenses and other cost-increase factors are also expected to increase.」
The company expects a substantial increase in raw material prices as well as higher logistics-related expenses, continuing to indicate strong pressure from rising procurement prices and costs. - FY2023-Q3WorsenedAnnual report
「Although the sharp increase in raw material prices has gradually pushed up the cost of sales, its impact remains limited for the time being,」
The company states that the sharp increase in raw material prices has actually emerged as an increase in the cost of sales, indicating continued pressure from procurement price fluctuations. At the same time, it states that the impact remains limited at present. - FY2023-Q2WorsenedAnnual report
「Inflation caused by surging raw material and energy prices」
In addition to higher raw material prices, the company explicitly cites surging energy prices and inflation, indicating mounting pressure from procurement and cost increases. - FY2023-Q1MaterialisedAnnual report
「In terms of earnings, although raw material costs increased,」
Regarding the risk of fluctuations in raw material prices, the company states that higher raw material costs occurred as an actual result for the current quarter. - FY2022WorsenedAnnual report
「On the earnings side, raw material prices are expected to rise substantially, while logistics-related expenses and other cost-increase factors are also expected to increase.」
The company states that substantial increases in raw material prices and logistics-related expenses are expected, indicating mounting pressure from fluctuations in procurement prices and rising costs. - FY2021RestatedAnnual report
「The raw materials used by the company are primarily agricultural products, and purchase prices may fluctuate depending on adverse weather conditions, changes in harvest volumes due to natural disasters, supply and demand conditions, and other factors. For imported raw materials, purchase prices may also fluctuate due to foreign exchange movements.」
The company is reaffirming the risks of fluctuations in packaging material prices due to weather and supply and demand for agricultural products, foreign exchange effects on imported raw materials, and crude oil prices, as well as its response through measures including diversification of suppliers. - FY2020MaterialisedAnnual report
「Cost of sales as a percentage of revenue rose 0.4 percentage points from the previous fiscal year to 51.6%, due to higher raw material costs and increased depreciation expenses associated with the reconstruction of the baked-goods line at the Seishin Factory, among other factors.」
Regarding the risk of fluctuations in raw material prices due to weather, supply and demand, and foreign exchange, the company states that higher raw material costs actually occurred and contributed to the increase in the cost-of-sales ratio. - FY2020-Q1MaterialisedAnnual report
「As raw material costs have been trending upward,」
Regarding the previously identified risk that prices of agricultural and other raw materials could fluctuate, the company states that raw material costs are actually trending upward. - FY2018First statedAnnual report
「The raw materials used by the company are primarily agricultural products, and purchase prices may fluctuate depending on adverse weather conditions, changes in harvest volumes due to natural disasters, supply and demand conditions, and other factors. For imported raw materials, purchase prices may also fluctuate due to foreign exchange movements.」
The company identifies as risks fluctuations in harvest volumes and supply and demand for agricultural raw materials, foreign exchange effects on imported raw materials, fluctuations in container and packaging material prices due to crude oil prices, and procurement difficulties.