Foreign Exchange, Political/Economic and Regulatory Risks Associated with the Globalization of Operations
First written in FY2016. 22 of 38 entries say "Materialised", first in FY2017-Q2. Latest entry: FY2026.
Yakult Honsha moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2025: 72 of 118 companies on the "Worse" side.
23 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「The estimated impact of exchange rate fluctuations was a ¥7.1 billion decrease in net sales and a ¥1.4 billion decrease in operating income for the current consolidated fiscal year.」
The impact of foreign exchange fluctuations affecting the overseas business was reflected in actual performance as a ¥7.1 billion decrease in net sales and a ¥1.4 billion decrease in operating income. - 2026-05-12MaterialisedFinancial Results Presentation
「Foreign exchange impact △7,145 Foreign exchange impact △1,436」
The company recorded foreign exchange-related decreases of ¥7,145 million and ¥1,436 million in overseas net sales and overseas operating income, respectively. - FY2026-H1MaterialisedAnnual report
「In the region, consumers were seen holding back on purchases due to lower purchasing intent resulting from the impact of U.S. tariff policies and other factors. The company nevertheless strengthened sales support through public relations activities and other measures, while working to increase the number of stores handling its products.」
The decline in purchasing intent due to U.S. tariff policies and other factors has actually materialized in the Americas region's sales activities as consumers holding back on purchases. - FY2025MaterialisedAnnual report
「In China, amid the continued delayed economic recovery and slowdown in consumption, the company worked to restore sales by strengthening activities to promote the value of the Shirota strain of lactic acid bacteria, centered on Yakult Peach Flavor (with Iron), and by developing new business partners.」
The delayed recovery of the Chinese economy and the slowdown in consumption have continued and are reflected in actual performance as an impact on sales. Business restructuring, including the closure of the Shanghai plant, was also implemented. The estimated foreign exchange impact was a ¥10.8 billion increase in net sales and a ¥1.7 billion increase in operating income. - FY2025-H1MaterialisedAnnual report
「In China, sales were affected by the delayed recovery of the country's economy and the slowdown in consumption, although sales of Yakult Peach Flavor (with Iron), launched in May, performed strongly. The company will continue working to restore performance by implementing measures from both short- and medium-term perspectives.」
The delayed recovery of the Chinese economy and the slowdown in consumption have actually materialized as an impact on sales. At the same time, the company states that it is working to restore performance through short- and medium-term measures. - FY2024Positive earnings impact from the weaker yenAnnual report
「The estimated impact of exchange rate fluctuations was a ¥16.9 billion increase in net sales and a ¥3.7 billion increase in operating income for the current consolidated fiscal year.」
Regarding foreign exchange fluctuations affecting the overseas business, the company continued to report positive effects on net sales and operating income from the weaker yen, estimating an increase of ¥16.9 billion in net sales and ¥3.7 billion in operating income for the current fiscal year. - FY2024-Q3MaterialisedAnnual report
「However, sales have been affected by the delayed recovery of the country's economy and the slowdown in consumption.」
The economic environment risks of the overseas business, namely the delayed recovery of the Chinese economy and slower consumption, have actually materialized as an impact on sales in China. - FY2024-Q2WorsenedAnnual report
「During the second quarter of the current consolidated cumulative period, Japan's economy was recovering moderately, partly due to the effects of various policies, but remained in a situation requiring close attention to downside risks from global monetary tightening, concerns about the outlook for the Chinese economy and other factors, as well as the impact of rising prices and other developments.」
The company explicitly identifies concerns about the outlook for the Chinese economy, in addition to global monetary tightening and rising prices, as downside risks to the economy. - FY2024-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, Japan's economy was recovering moderately, partly due to the effects of various policies, but remained in a situation requiring close attention to downside risks from global monetary tightening and other factors, as well as the impact of rising prices and other developments.」
The company continues to note the downside risk to the economy from global monetary tightening and the impact of rising prices. - FY2023Positive earnings impact from the weaker yenAnnual report
「The estimated impact of exchange rate fluctuations was a ¥29.7 billion increase in net sales and a ¥5.3 billion increase in operating income for the current consolidated fiscal year.」
Regarding foreign exchange effects on the overseas business, the impact shifted from the decrease in net sales and operating income caused by the stronger yen through the previous fiscal year to an estimated increase of ¥29.7 billion in net sales and ¥5.3 billion in operating income from the weaker yen in the current fiscal year. - FY2023-Q3RestatedAnnual report
「During the third quarter of the current consolidated cumulative period, Japan's economy was expected to recover, but remains in a situation requiring close attention to downside risks from the global monetary tightening and other factors, as well as the impact of rising prices and other developments.」
The company continues to note the downside risk to the economy from global monetary tightening and the impact of rising prices. - FY2023-Q2RestatedAnnual report
「In Myanmar, the company has temporarily suspended its sales and production activities in light of the political situation and other factors. In China, activities in many districts were restricted due to lockdowns and other effects associated with the spread of COVID-19.」
The suspension of sales and production activities in Myanmar due to the political situation and other factors, and restrictions on activities in China due to infectious disease and lockdowns, continue. - FY2023-Q1WorsenedAnnual report
「In Myanmar, the company has temporarily suspended its sales and production activities in light of the political situation and other factors. In China, operations at the Shanghai plant and activities in many districts were restricted due to lockdowns and other effects associated with the spread of COVID-19.」
Political and infectious disease-related constraints on the overseas business have extended from Myanmar to China, materializing as restrictions on operations at the Shanghai plant and activities in many districts. - FY2022MaterialisedAnnual report
「In Myanmar, Myanmar Yakult Co., Ltd. has currently suspended its sales and production activities for more than one year due to political instability and demonstrations, prioritizing the safety of its employees. As a result, the company determined that there were indications of impairment, calculated the fair value less costs of disposal as the recoverable amount for property, plant and equipment of ¥2,898 million, and recognized an impairment loss of ¥1,380 million.」
Political risk related to the overseas business materialized in Myanmar as a suspension of sales and production activities for more than one year, and an impairment loss of ¥1,380 million was recognized. - FY2022-Q3MaterialisedAnnual report
「The main factors were an increase in the foreign currency translation adjustment account due to the weaker yen and an increase in retained earnings from quarterly net income attributable to owners of the parent, despite a decrease in valuation difference on available-for-sale securities.」
Unlike the previous decrease due to the stronger yen, the increase in the foreign currency translation adjustment account due to the weaker yen is clearly reflected as a factor in the increase in net assets. In Myanmar, the temporary suspension of sales and production activities due to the political situation and infectious disease also continues. - FY2022-Q2MaterialisedAnnual report
「In Myanmar, the company has temporarily suspended its sales and production activities, taking into consideration the political situation and the spread of COVID-19.」
Political, economic and infectious disease risks related to the overseas business have actually materialized in Myanmar as a temporary suspension of sales and production activities. - FY2022-Q1The foreign exchange impact shifted toward a weaker yen.Annual report
「The main factors were an increase in the foreign currency translation adjustment account due to the weaker yen and an increase in retained earnings from quarterly net income attributable to owners of the parent, despite a decrease in valuation difference on available-for-sale securities.」
Unlike the previous decrease in the foreign currency translation adjustment account due to the stronger yen, the company states that in the first quarter it increased due to the weaker yen, contributing to an increase in net assets. - FY2021MaterialisedAnnual report
「The estimated impact of exchange rate fluctuations was a ¥11.2 billion decrease in net sales and a ¥2.3 billion decrease in operating income for the current consolidated fiscal year.」
The estimated impact of exchange rate fluctuations, including the stronger yen, was a ¥11.2 billion decrease in net sales and a ¥2.3 billion decrease in operating income for the current period. - FY2021-Q3MaterialisedAnnual report
「Net assets were ¥426,115 million, an increase of ¥14,032 million from the end of the previous consolidated fiscal year. The main factor was an increase in retained earnings from quarterly net income attributable to owners of the parent and other factors, despite a decrease in the foreign currency translation adjustment account due to the stronger yen.」
The decrease in the foreign currency translation adjustment account due to the stronger yen is clearly reflected as a factor in the change in net assets. - FY2021-Q2MaterialisedAnnual report
「Net assets were ¥414,293 million, an increase of ¥2,211 million from the end of the previous consolidated fiscal year. The main factor was an increase in retained earnings from quarterly net income attributable to owners of the parent and other factors, despite a decrease in the foreign currency translation adjustment account due to the stronger yen.」
The decrease in the foreign currency translation adjustment account due to the stronger yen continues to be clearly reflected as a factor in the change in net assets. - FY2021-Q1MaterialisedAnnual report
「Net assets were ¥398,823 million, a decrease of ¥13,259 million from the end of the previous consolidated fiscal year. The main factor was a decrease in the foreign currency translation adjustment account due to the stronger yen, despite an increase in retained earnings from quarterly net income attributable to owners of the parent and other factors.」
The decrease in the foreign currency translation adjustment account due to the stronger yen is clearly reflected as a factor in the decrease in net assets, with the account down ¥20,210 million from the end of the previous fiscal year. - FY2020MaterialisedAnnual report
「The estimated impact of exchange rate fluctuations was a ¥6.7 billion decrease in net sales and a ¥1.4 billion decrease in operating income for the current consolidated fiscal year.」
Regarding foreign exchange risk associated with the increasing weighting of overseas operations, the estimated impact for the current period was a ¥6.7 billion decrease in net sales and a ¥1.4 billion decrease in operating income. - FY2020-Q3MaterialisedAnnual report
「The main factors were decreases in the foreign currency translation adjustment account due to the stronger yen and in valuation difference on available-for-sale securities due to the decline in share prices, offset by an increase in retained earnings from quarterly net income attributable to owners of the parent and other factors.」
The decrease in the foreign currency translation adjustment account due to the stronger yen is clearly reflected as a factor in the change in net assets at the end of the third quarter. The company states that attention is also required regarding fluctuations in the global economy and consumer sentiment following the consumption tax rate increase. - FY2020-Q2MaterialisedAnnual report
「The main factors were decreases in the foreign currency translation adjustment account due to the stronger yen and in valuation difference on available-for-sale securities due to the decline in share prices, offset by an increase in retained earnings from quarterly net income attributable to owners of the parent and other factors.」
The decrease in the foreign currency translation adjustment account due to the stronger yen is clearly reflected as a factor in the change in net assets at the end of the second quarter. - FY2020-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, Japan's economy continued to recover moderately, although the impact of fluctuations in the global economy requires attention, amid continued improvement in the income environment.」
The company continues to caution about the impact of fluctuations in the global economy. It states that there are no new business risks or other risks, and no material changes from the previous fiscal year. - FY2019MaterialisedAnnual report
「The estimated impact of exchange rate fluctuations was a ¥5.2 billion decrease in net sales and a ¥1.0 billion decrease in operating income for the current consolidated fiscal year.」
Regarding foreign exchange risk associated with the increasing weighting of overseas operations, the estimated impact for the current period was a ¥5.2 billion decrease in net sales and a ¥1.0 billion decrease in operating income. - FY2019-Q3MaterialisedAnnual report
「The main factors were decreases in the foreign currency translation adjustment account due to the stronger yen and in valuation difference on available-for-sale securities due to the decline in share prices, offset by an increase in retained earnings from quarterly net income attributable to owners of the parent and other factors.」
The decrease in the foreign currency translation adjustment account due to the stronger yen is clearly reflected as a factor in the change in net assets at the end of the third quarter. - FY2019-Q2MaterialisedAnnual report
「The main factors were a decrease in the foreign currency translation adjustment account due to the stronger yen, offset by an increase in retained earnings from quarterly net income attributable to owners of the parent, as well as an increase in valuation difference on available-for-sale securities due to the rise in share prices.」
The decrease in the foreign currency translation adjustment account due to the stronger yen is clearly reflected as a factor in the change in net assets at the end of the second quarter. - FY2019-Q1MaterialisedAnnual report
「The main factors were an increase in retained earnings due to quarterly net income attributable to owners of the parent and other items, despite a decrease in the foreign currency translation adjustment account resulting from yen appreciation, as well as an increase in the valuation difference on other securities due to the rise in share prices.」
The decrease in the foreign currency translation adjustment account due to the stronger yen is clearly reflected as a factor in the change in net assets for the quarter. - FY2018RestatedAnnual report
「The estimated impact of foreign exchange rate fluctuations was a ¥4.3 billion increase in net sales and a ¥800 million increase in operating profit for the consolidated fiscal year.」
Foreign exchange risk associated with the increasing overseas share of the business continues. For the current fiscal year, the Company estimated that foreign exchange fluctuations would increase net sales by ¥4.3 billion and operating profit by ¥800 million, a change from the decreases in net sales and operating profit caused by foreign exchange movements in the previous fiscal year. - FY2018-Q3RestatedAnnual report
「During the first nine months of the current fiscal year, Japan's economy continued to recover moderately, with corporate earnings improving and private consumption gradually picking up, although the outlook remained uncertain amid growing uncertainty in overseas economies and other factors.」
The Company continues to report growing uncertainty in overseas economies and an uncertain outlook. - FY2018-Q2RestatedAnnual report
「During the first six months of the current fiscal year, Japan's economy continued to recover moderately, with corporate earnings improving and private consumption gradually picking up, although the outlook remained uncertain amid growing uncertainty in overseas economies and other factors.」
The Company continues to report growing uncertainty in overseas economies and an uncertain outlook. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, Japan's economy continued to recover moderately, with corporate earnings improving and private consumption gradually picking up, although the outlook remained uncertain amid growing uncertainty in overseas economies and other factors.」
The Company continues to report growing uncertainty in overseas economies and an uncertain outlook. - FY2017MaterialisedAnnual report
「The estimated impact of foreign exchange rate fluctuations was a ¥25.4 billion decrease in net sales and a ¥6.8 billion decrease in operating profit for the consolidated fiscal year.」
Regarding foreign exchange risk associated with the overseas business, the Company specifically estimated that foreign exchange fluctuations, including yen appreciation, would reduce net sales by ¥25.4 billion and operating profit by ¥6.8 billion. - FY2017-Q3RestatedAnnual report
「Nevertheless, the Company remains in a situation requiring continued attention to the effects of uncertainty in overseas economies and volatility in financial and capital markets. The international business has also been affected by the impact of yen appreciation on foreign exchange translation.」
The Company continues to draw attention to uncertainty in overseas economies and financial markets, and continues to report the impact of yen appreciation on foreign exchange translation in its international business. - FY2017-Q2MaterialisedAnnual report
「The international business has nevertheless been affected by the impact of yen appreciation on foreign exchange translation.」
Regarding foreign exchange risk associated with the overseas business, the impact of yen appreciation on foreign exchange translation has appeared in the actual business performance discussion. - FY2017-Q1WorsenedAnnual report
「The outlook remains uncertain amid growing uncertainty in overseas economies, including uncertainty surrounding the UK's withdrawal from the EU.」
Although the risk section states that there have been no significant changes, the business performance discussion explicitly notes growing uncertainty in overseas economies surrounding the UK's withdrawal from the EU. - FY2016First statedAnnual report
「The Group operates businesses in countries around the world and conducts manufacturing and sales activities overseas. As each business location has remained robust, the overseas share of the Group’s performance has increased year after year.」
The Company states that, as its overseas business grows, foreign exchange fluctuations, political and economic instability, and changes in laws and regulations may affect its business performance and financial position.