Risk of soaring material, fuel and logistics costs
First written in FY2016. 11 of 30 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-08-03.
NH Foods moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 121 of 167 companies on the "Worse" side.
39 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「Business profit declined 52.7% year on year to ¥2,170 million, as soaring prices for raw materials used in processed chicken products in North America and persistently high manufacturing costs due to lower operating rates weighed on results.」
In North America, soaring prices for raw materials used in processed chicken products and persistently high manufacturing costs caused by lower operating rates reduced business profit at the Processed Foods Division by 52.7% year on year. - FY2024-Q3MitigatedAnnual report
「Business profit rose 48.6% year on year to ¥8,916 million, as the product mix improved with the recovery in sales volumes of Schau Essen and the chilled bakery product range, while price revisions to offset soaring raw material prices also contributed.」
The benefits of price revisions to offset soaring raw material prices contributed to improved profit, demonstrating the results of measures to address the impact of higher costs. - FY2023WorsenedAnnual report
「The industry continues to face an unprecedentedly challenging situation as persistently high raw material prices, rising energy prices, and price increases for various products resulting from these factors have directly affected household budgets, leading consumers to become more cost-conscious and shift toward lower-priced products.」
Higher raw material and energy prices and continued preference for lower prices due to price pass-through reduced profit at the Processed Foods Division by 65.8% year on year. - FY2023-Q3WorsenedAnnual report
「The industry is undergoing major changes in its operating environment, including soaring raw material prices, rising energy costs, and the continued rapid depreciation of the yen, and an unprecedentedly challenging situation continues.」
Continued soaring raw material prices and energy costs could not be absorbed by the Processed Foods Division and other operations, resulting in lower profit. - FY2023-Q2WorsenedAnnual report
「In addition, the rise in international grain and crude oil prices and the depreciation of the yen led to raw material prices and fuel costs rising above expectations, resulting in a challenging earnings environment.」
Higher grain and crude oil prices and yen depreciation drove raw material prices and fuel costs above expectations, worsening the earnings environment. - FY2023-Q1WorsenedAnnual report
「Although restrictions on going out were eased as the impact of COVID-19 subsided, sales of both consumer and food-service products declined as consumers became more cost-conscious, and sales fell below the previous year. In addition, the rise in international grain and crude oil prices and the depreciation of the yen led to higher raw material prices and fuel costs, resulting in a challenging earnings environment.」
Higher grain and crude oil prices, raw material prices, and fuel costs, combined with yen depreciation and lower demand, reduced business profit at the Processed Foods Division by 63.3% year on year to ¥1,220 million. - FY2022WorsenedAnnual report
「Profit for the Processed Foods Division as a whole declined because raw material prices, fuel costs and other expenses rose sharply above expectations, while labor costs increased with higher volumes and upfront costs for the development of DX capabilities also rose.」
In addition to the sharp rise in raw material prices and fuel costs, higher labor costs became an actual factor behind the decline in profit, and the risk of higher costs is increasing. - FY2022-Q3WorsenedAnnual report
「Profit for the Processing Business Division as a whole declined because raw material and fuel prices rose sharply and more than expected, while labor costs increased with higher volumes and upfront costs for building DX capabilities also rose.」
Raw material prices and fuel costs rose sharply above expectations, while higher labor costs also contributed to lower profit at the Processed Foods Division. - FY2022-Q1MaterialisedAnnual report
「In procurement, the Group struggled to secure products because of labor shortages and vessel departure delays resulting from the impact of COVID-19 in countries from which imported products are sourced. However, it worked to meet customer needs and secure profits by leveraging its procurement network, which is a key strength, developing new procurement sources, and sourcing products such as beef from Uruguay through the Group's overseas locations.」
The Company struggled to secure imported products because of labor shortages and vessel departure delays in sourcing countries, and logistics and supply risks materialized. - FY2020MaterialisedAnnual report
「The industry continued to face a challenging operating environment, including higher prices for some raw materials, rising labor and logistics costs amid labor shortages, intensified competition, and livestock diseases in Japan and overseas.」
Raw material, labor, and logistics costs continued to rise during the fiscal year, with logistics costs included in selling, general and administrative expenses totaling ¥41,169 million. - FY2020-Q3MaterialisedAnnual report
「The industry continued to face a challenging operating environment, including higher prices for some raw materials, rising labor and logistics costs amid labor shortages, intensified competition, and livestock diseases in Japan and overseas.」
Rising labor and logistics costs driven by labor shortages, higher raw material prices, and intensifying sales competition continue to characterize the operating environment. - FY2020-Q2MaterialisedAnnual report
「In the sales division, the company worked to strengthen proposals for branded meat and value-added products, as well as to secure and propose a stable supply of products from a broad range of countries of origin in light of price volatility risks arising from livestock diseases in Japan and overseas and the impact of US-China trade negotiations. However, overall profit declined because domestic and imported beef struggled amid high procurement prices, domestic pork and chicken selling prices remained weak due to increased supplies of imported pork and domestic chicken, and performance was affected by unfavorable summer weather and higher logistics costs.」
High beef procurement prices, weak pork and chicken selling prices, and higher logistics costs actually contributed to lower profit in the sales division. - FY2020-Q1MaterialisedAnnual report
「The industry continued to face a challenging operating environment, including higher prices for some raw materials, rising labor and logistics costs amid labor shortages, intensified competition, and livestock diseases in Japan and overseas.」
The disclosure states that higher logistics costs put pressure on profit in the meat business. - FY2019MaterialisedAnnual report
「The industry continued to face a challenging operating environment, including higher prices for some raw materials, rising labor and logistics costs amid labor shortages, intensified competition, and livestock diseases.」
Higher labor and logistics costs amid labor shortages also occurred during the fiscal year, and logistics costs included in selling, general and administrative expenses totaled ¥40,528 million. - FY2019-Q3RestatedAnnual report
「The industry continued to face a challenging operating environment, including higher prices for some raw materials, rising labor and logistics costs amid labor shortages, and intensified competition.」
The disclosure reaffirms an environment of rising raw material, labor and logistics costs and intensifying competition. - FY2019-Q2RestatedAnnual report
「The industry continued to face a challenging operating environment, including higher prices for some raw materials, rising labor and logistics costs amid labor shortages, and intensified competition.」
The disclosure reaffirms an environment of rising raw material, labor and logistics costs and intensifying competition. - FY2019-Q1RestatedAnnual report
「The industry continued to face a challenging operating environment, including higher prices for some raw materials, rising labor and logistics costs, and intensified competition.」
The disclosure reaffirms an environment of rising raw material, labor and logistics costs and intensifying competition. - FY2018RestatedAnnual report
「However, if material, fuel and logistics costs surge due to high crude oil prices or other factors and cannot be offset through cost-cutting efforts, or if the increases cannot be passed on to selling prices, the Group's performance and financial position may be affected.」
The company continues to cite the risk of soaring material, fuel and logistics costs while pursuing production efficiency improvements and reductions in inventory losses and logistics costs. - FY2018-Q3RestatedAnnual report
「The industry continued to face a challenging operating environment, as prices for some raw materials rose due to supply shortages, while labor and logistics costs increased amid severe labor shortages, household consumption remained sluggish, and competition intensified.」
The disclosure again states that, in addition to higher raw material prices, labor and logistics costs continued to rise amid severe labor shortages. - FY2018-Q2WorsenedAnnual report
「The industry continued to face a challenging operating environment, as prices for some raw materials rose due to supply shortages, while labor and logistics costs increased amid increasingly severe labor shortages and competition intensified.」
The disclosure states that, in addition to raw material supply shortages and price increases, labor shortages have become more severe and labor and logistics costs have continued to rise. - FY2018-Q1MaterialisedAnnual report
「The industry continued to face a challenging operating environment, as prices for some raw materials rose due to supply shortages, while labor and logistics costs increased amid labor shortages and competition intensified.」
Higher labor and logistics costs amid labor shortages, along with rising raw material prices, continued to affect the actual operating environment. - FY2017RestatedAnnual report
「However, if material, fuel and logistics costs surge due to high crude oil prices or other factors and cannot be offset through cost-cutting efforts, or if the increases cannot be passed on to selling prices, the Group's performance and financial position may be affected.」
The company continues to state that the risk of higher material, fuel and logistics costs remains, despite pursuing production efficiency improvements, inventory-loss reductions and logistics-cost reductions. - FY2017-Q3RestatedAnnual report
「Although raw material prices began to stabilize, the industry continued to face a challenging operating environment due to domestic meat prices turning weak, higher logistics costs amid labor shortages, and intensified competition.」
Higher logistics costs amid labor shortages continued to be cited as part of the challenging operating environment. - FY2017-Q2RestatedAnnual report
「Although raw material prices began to stabilize, the industry continued to face a challenging operating environment due to domestic chicken prices turning weak, higher logistics costs amid shortages of labor and vehicles, and intensified competition.」
Higher logistics costs amid shortages of labor and vehicles continued to be cited as part of the challenging operating environment. - FY2017-Q1MaterialisedAnnual report
「Although raw material prices showed signs of stabilizing in the industry, the business environment remained difficult due to the domestic chicken market turning soft, rising logistics costs amid labor and vehicle shortages, and intensifying sales competition, among other factors.」
The disclosure states that logistics costs rose amid shortages of labor and vehicles, and that the risk of higher logistics costs has emerged as an actual operating-environment issue. - FY2016First statedAnnual report
「However, if material, fuel and logistics costs surge due to high crude oil prices or other factors and cannot be offset through cost-cutting efforts, or if the increases cannot be passed on to selling prices, the Group's performance and financial position may be affected.」
The company is pursuing production efficiency improvements, inventory-loss reductions and logistics-cost reductions, but does not state that these risks can be completely avoided.