Low-Cost Operations and Absorbing Cost Increases
First written in FY2016. 10 of 35 entries say "Worsened", first in FY2020. Latest entry: 2026-08-07.
Megmilk Snow Brand moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
The whole theme swung hardest in 2026: 6 of 21 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2026WorsenedAnnual report
「To address higher costs, the company implemented price revisions even amid concerns about a temporary impact on sales volume. It also actively pursued various promotional activities, but operating profit fell below the previous year due in part to higher fixed costs.」
While advancing price revisions and promotions, lower sales volume associated with the price revisions and higher fixed costs resulted in a 4.5% year-on-year decline in company-wide operating profit. - FY2026-H1WorsenedAnnual report
「To address higher costs, the company implemented price revisions even amid concerns about a temporary impact on sales volume. It also actively pursued various promotional activities, but operating profit fell below the previous year due in part to higher fixed costs.」
While advancing price revisions and promotions, the impact of price revisions on sales volume and higher fixed costs combined to push operating profit in Dairy Products and Beverages and Desserts below the previous year. - FY2024AdvancedAnnual report
「In the existing businesses, the effects of price revisions and other measures taken to date absorbed the impact of higher costs, earnings power has steadily recovered, and the company believes it demonstrated a degree of resilience to higher costs.」
The explanation has shifted to the company being able to absorb the impact of higher costs through price revisions and other measures, demonstrating actual earnings improvement after insufficient absorption of higher costs in the previous year. - FY2024-Q3AdvancedAnnual report
「Revenue in both the Dairy Products and Beverages and Desserts segments exceeded the previous year due to appropriate price revisions. In addition, as the price revisions implemented since the previous year gained traction, stronger marketing activities and other factors resulted in higher profit.」
It explains that the increasing penetration of price revisions implemented since the previous year and stronger marketing activities lifted revenue in Dairy Products and Beverages and Desserts above the previous year, resulting in higher profit. - FY2024-Q2AdvancedAnnual report
「Revenue in both the Dairy Products and Beverages and Desserts segments exceeded the previous year due to appropriate price revisions. In addition, as the price revisions implemented since the previous year gained traction, stronger marketing activities and other factors resulted in higher profit. Operating profit was ¥11,242 million, up 53.0% year on year.」
The company disclosed that the increasing penetration of price revisions implemented since the previous year and appropriate pricing drove higher revenue in Dairy Products and Beverages and Desserts, as well as the 53.0% increase in company-wide operating profit. - FY2024-Q1AdvancedAnnual report
「In fiscal 2023, the first year of the plan, the company designated as key initiatives the response to higher costs through productivity improvements across the entire value chain, a review of its cost structure, and appropriate pricing; maintaining and expanding the top line in response to changes in the operating environment; and creating new growth opportunities and launching initiatives in overseas markets, primarily in Asia, and in the e-commerce business. It moved forward with these initiatives proactively.」
The company translated its response to higher costs into initial-year measures under Medium-Term Plan 2025, combining productivity improvements, a review of its cost structure, and appropriate pricing. In Dairy Products and Beverages and Desserts, higher selling prices following price revisions contributed to higher profit, and company-wide operating profit rose 32.1% year on year. - FY2023WorsenedAnnual report
「However, in the fiscal year ended March 2023, although revenue exceeded the previous year, raw material and energy prices surged due to foreign exchange movements and the situation in Ukraine. The company implemented price revisions and changes in product sizes, but was unable to absorb all of the higher costs.」
It explains that, although it implemented price revisions and changes in product sizes, it was unable to fully absorb the increases in raw material, energy, and other costs. - FY2023-Q3RestatedAnnual report
「Profit declined due to higher raw material, operating, and fixed costs, among other factors.」
The company has continued to report a situation in which higher raw material, operating, and fixed costs are factors behind lower profit. - FY2023-Q2WorsenedAnnual report
「Profit declined due to higher raw material, operating, and fixed costs, among other factors.」
Profit declined in the Dairy Products segment due to higher raw material, operating, and fixed costs. In Beverages and Desserts, higher raw material and operating costs and lower sales volume reduced profit, while in Feed and Seed, lower gross profit due to higher raw material costs was a factor behind the decline. - FY2023-Q1WorsenedAnnual report
「Profit declined due to higher raw material and operating costs and lower sales volume, among other factors.」
Higher raw material costs and other factors reduced profit in the Dairy Products, Beverages and Desserts, and Feed and Seed segments, resulting in a 39.0% year-on-year decline in company-wide operating profit. - FY2022-Q3WorsenedAnnual report
「Profit declined due to higher raw material and operating costs, among other factors.」
While targeting the absorption of higher costs, the company has seen increases in raw material and operating costs emerge as factors behind lower profit in the Dairy Products segment. - FY2022-Q2RestatedAnnual report
「Although advertising and promotional expenses increased, operating income rose due to higher sales volume and product-mix effects.」
It continues to explain that earnings improvements from higher sales volume and a favorable product mix absorbed the increase in advertising and promotional expenses. - FY2022-Q1Higher advertising and promotional expenses absorbed by sales volume and product mixAnnual report
「Although advertising and promotional expenses increased, operating income rose due to higher sales volume and product-mix effects.」
It explains that, although advertising and promotional expenses increased, higher sales volume and a favorable product mix were drivers of higher profit, with other earnings improvement factors absorbing the increase in expenses. - FY2021RestatedAnnual report
「Although efforts to operate advertising and promotional expenses more efficiently had an effect, operating income declined substantially due to lower sales volume, reflecting changes in consumer behavior resulting from COVID-19, and higher operating costs.」
While continuing to address higher costs through the efficient use of advertising and promotional expenses, the company continued to report throughout the fiscal year that lower sales volume and higher operating costs were weighing on earnings. - FY2021-Q3RestatedAnnual report
「Although efforts to operate advertising and promotional expenses more efficiently had an effect, operating income declined substantially due to lower sales volume, reflecting changes in consumer behavior resulting from COVID-19, and higher operating costs.」
While the efficient use of advertising and promotional expenses provided an offset, lower sales volume and higher operating costs continued, with higher costs and efficiency measures continuing to coexist. - FY2021-Q2RestatedAnnual report
「Although efforts to operate advertising and promotional expenses more efficiently had an effect, operating income declined substantially due to lower sales volume, reflecting changes in consumer behavior resulting from COVID-19, and higher operating costs.」
While the efficient use of advertising and promotional expenses provided an offset, lower sales volume and higher operating costs continued. - FY2021-Q1Higher costs became a drag on earningsAnnual report
「Although efforts to operate advertising and promotional expenses more efficiently had an effect, operating income declined substantially due to lower sales volume, reflecting changes in consumer behavior resulting from COVID-19, and higher operating costs.」
While the efficient use of advertising and promotional expenses provided an offset, lower sales volume and higher operating costs became factors reducing profit in the beverages and desserts business. - FY2020WorsenedAnnual report
「In addressing higher costs, costs increased over the three years from fiscal 2017 by approximately ¥4.4 billion for raw materials, including milk, approximately ¥3.6 billion for logistics, and approximately ¥1.4 billion for energy, but the company was unable to take sufficient measures.」
The company quantified higher costs over the past three years at ¥9.4 billion and explained that insufficient measures to address them were a factor behind the shortfall against Medium-Term Management Plan 2019. - FY2020-Q3RestatedAnnual report
「Although efforts to operate advertising and promotional expenses more efficiently supported earnings, operating income declined due to increases in fixed costs and operating costs.」
While the efficient use of advertising and promotional expenses provided an offset, fixed costs and operating costs continued to increase, documenting the continued coexistence of higher costs and efficiency measures. - FY2020-Q2Higher costs continued, with partial offsets from price revisions and efficient operations becoming more evidentAnnual report
「Although raw material costs and operating costs increased due to factors including higher transaction prices for raw milk, operating income increased substantially as a result of the impact of selling-price differentials from price revisions and the effects of efforts to operate advertising and promotional expenses more efficiently.」
While raw material and operating costs continued to rise due to higher transaction prices for raw milk, price revisions and the efficient use of advertising and promotional expenses supported earnings in the beverages and desserts business. - FY2020-Q1Higher costs continued, partly offset by efficient operationsAnnual report
「Although efforts to operate advertising and promotional expenses more efficiently supported earnings, operating income declined due to increases in fixed costs and operating costs.」
While the efficient use of advertising and promotional expenses supported earnings, fixed costs and operating costs continued to rise, leaving ongoing pressure from higher costs. - FY2019Insufficient effect from measures to address higher costsAnnual report
「Operating income declined because sales of core products stagnated amid a severe competitive environment and measures to address higher costs failed to produce sufficient results.」
The company implemented measures such as price revisions and package-size changes, but states that it was unable to fully absorb increases in raw material costs, operating costs, and fixed costs. - FY2019-Q3Higher raw material and fixed costs became a drag on earningsAnnual report
「Although product-mix improvements and the selling-price differential resulting from price revisions and changes in package sizes supported earnings, operating income declined because raw material costs and other costs increased, partly due to the impact of milk-price revisions.」
While product-mix improvements and price revisions supported earnings, increases in raw material and other costs associated with milk-price revisions continued to weigh on profit. - FY2019-Q2Lower earnings due to higher costs and disaster-related impactsAnnual report
「Although product-mix improvements and the selling-price differential resulting from price revisions and changes in package sizes supported earnings, operating income declined due to higher raw material costs resulting from milk-price revisions and higher fixed costs, as well as the impact of the Hokkaido Eastern Iburi Earthquake that occurred in September.」
Although the company improved its product mix and implemented price revisions and package-size changes, higher raw material costs and fixed costs, together with the impact of the Hokkaido Eastern Iburi Earthquake, reduced earnings. - FY2019-Q1Higher raw material, promotional, and operating costs became a drag on earningsAnnual report
「Although sales of functional yogurt expanded, operating income declined substantially due to a significant increase in advertising and promotional expenses associated with aggressive promotional activities, higher operating costs, and higher depreciation expenses.」
While sales of functional yogurt expanded, increases in advertising and promotional expenses, operating costs, and depreciation expenses became factors reducing profit in the beverages and desserts business. - FY2018-Q3Higher costs became a drag on earningsAnnual report
「Operating income declined due to increases in advertising and promotional expenses and energy costs.」
Increases in advertising and promotional expenses and energy costs emerged as factors reducing profit in the dairy products segment, documenting cost pressure during the period despite initiatives aimed at absorbing higher costs. - FY2017AdvancedAnnual report
「Although net sales declined during the period, mainly due to lower selling prices for feed, operating income increased as a result of efforts to review selling expenses and operate more effectively, as well as lower purchase prices.」
The company continued to review selling expenses and operate more effectively, and operating income in the feed and seeds segment was ¥1,255 million, up 45.9% year on year. - FY2017-Q3AdvancedAnnual report
「Although net sales declined during the period, mainly due to lower selling prices for feed, operating income increased as a result of efforts to review selling expenses and operate more effectively, as well as lower purchase prices.」
The company explains that, while continuing to review selling expenses and operate more effectively, operating income in the feed and seeds business was ¥1,152 million, or 120.5% of the prior-year period. - FY2017-Q2AdvancedAnnual report
「Net sales were ¥22,616 million, equivalent to 92.4% of the prior-year period, and operating income was ¥1,159 million, equivalent to 111.1%. Although net sales declined during the period, mainly due to lower selling prices for feed, operating income increased as a result of efforts to review selling expenses and operate more effectively, as well as lower purchase prices.」
The company describes specific measures involving a review of selling expenses and effective operations, explaining that operating income in the feed and seeds business was 111.1% of the prior-year period. - FY2017-Q1RestatedAnnual report
「The company worked to improve the product mix through expanded sales of high-value-added products and to improve productivity through the effective use of strategically invested production facilities.」
The company reiterates profit improvement measures combining expanded sales of high-value-added products with productivity improvements. - FY2016First statedAnnual report
「The company worked to improve profitability by expanding sales of core products, achieving low-cost operations through productivity improvements, and addressing higher costs through measures including a review of selling prices.」
The company describes profit improvement measures combining productivity gains with a review of selling prices during the fiscal year.