Margin Pressure from Higher Raw Material Costs and Lower Product Prices
First written in FY2016. 11 of 27 entries say "Worsened", first in FY2018-Q3. Latest entry: 2026-08-10.
Takizawa Ham moved to the "Worse" side of this theme in 2021, 3 years after the typical company in this theme (2018).
The whole theme swung hardest in 2025: 11 of 19 companies on the "Worse" side.
7 other companies' latest entry also says "Restated".
- 2026-08-10RestatedEarnings
「これらのコスト増加を十分に吸収することができませんでした。」
価格改定やコスト削減を含む収益対応を進めているが、コスト増加を十分に吸収できない状況が続いている。 - FY2026RestatedAnnual report
「The cost of sales ratio was 86.7%, unchanged from the previous consolidated fiscal year, due to cost-increasing factors related to raw materials and other items, as in the previous year.」
Cost-increasing factors related to raw materials and other items continued, leaving the cost of sales ratio unchanged from the previous fiscal year at 86.7%. Despite efforts to implement price revisions and reduce costs, the company continued to be unable to absorb the full increase in costs. - FY2026-H1WorsenedAnnual report
「Regarding earnings, despite efforts to reduce expenses in response to lower sales volume and higher prices of imported beef and other raw materials, the company recorded an operating loss of ¥226 million (operating loss of ¥221 million in the same period of the previous year) and an ordinary loss of ¥220 million (ordinary loss of ¥207 million in the same period of the previous year)」
Higher prices of imported beef and other raw materials, together with lower sales volume, became loss factors, and the operating and ordinary losses increased from the same period of the previous year. - FY2025WorsenedAnnual report
「The cost of sales ratio deteriorated by 2.0 percentage points from the previous consolidated fiscal year to 86.7% due to cost-increasing factors related to raw materials and other items.」
The company was unable to absorb cost-increasing factors related to raw materials and other items through price revisions and cost reductions, and the cost of sales ratio deteriorated by 2.0 percentage points from 84.7% in the previous fiscal year to 86.7%, resulting in an operating loss of ¥432 million. - FY2025-H1WorsenedAnnual report
「In terms of earnings, the company worked to offset surging raw material prices through price revisions and cost reductions, but posted an operating loss of ¥221 million, compared with operating income of ¥39 million in the year-earlier period, and an ordinary loss of ¥207 million, compared with ordinary income of ¥56 million. In addition, due in part to the reversal of deferred tax assets, it posted an interim net loss attributable to owners of the parent of ¥289 million, compared with interim net income attributable to owners of the parent of ¥43 million in the year-earlier period.」
The company proceeded with price revisions and cost reductions in response to soaring raw material prices but was unable to absorb the full increase, recording losses including an operating loss of ¥221 million. Margin pressure from higher raw material costs materialized as a shift from a profit in the same period of the previous year to a loss. - FY2024MitigatedAnnual report
「The cost of sales ratio improved by 1.8 percentage points from the previous consolidated fiscal year to 84.7%, partly due to price revisions and cost reductions.」
Amid rising raw material and energy costs, among others, the company proceeded with price revisions and cost reductions, improving the cost of sales ratio by 1.8 percentage points. - FY2024-Q3RestatedAnnual report
「The business environment remains challenging, with raw material and energy prices staying high, higher logistics costs and labor shortages, and stagnant personal consumption due to continued inflation.」
While raw material and energy prices remained persistently high and logistics costs continued to rise, profit was positive in the cumulative third quarter due to the effects of price revisions and cost reductions. - FY2024-Q2RestatedAnnual report
「The business environment remains challenging, with raw material and energy prices staying high, higher logistics costs and labor shortages, and stagnant personal consumption due to continued inflation.」
While raw material and energy prices remained persistently high, profit was positive in the cumulative second quarter due to the effects of price revisions and cost reductions. - FY2024-Q1RestatedAnnual report
「The challenging business environment continues, with soaring raw material prices, higher energy prices and logistics costs, and declining personal consumption due to inflation caused by successive food price increases.」
While raw material and energy prices continued to soar, profit was positive in the current quarter due to the effects of price revisions and cost reductions. - FY2023WorsenedAnnual report
「The cost of sales ratio deteriorated by 1.1 percentage points from the previous consolidated fiscal year to 86.5%, partly due to higher electricity and fuel costs.」
The cost of sales ratio deteriorated by 1.1 percentage points year on year to 86.5% due to higher electricity and fuel costs, among other factors, and the margin pressure from higher raw material and energy costs increased in the full-year results. - FY2023-Q3RestatedAnnual report
「In terms of earnings, the company posted an operating loss of ¥79 million, compared with operating income of ¥259 million in the year-earlier period, an ordinary loss of ¥36 million, compared with ordinary income of ¥319 million, and a quarterly net loss attributable to owners of the parent of ¥95 million, compared with quarterly net income attributable to owners of the parent of ¥293 million, due to lower revenue and surging raw material prices and energy costs.」
Soaring raw material prices and energy costs have continued to emerge as loss factors together with lower sales. - FY2023-Q2WorsenedAnnual report
「In terms of earnings, the company posted an operating loss of ¥159 million, compared with operating income of ¥27 million in the year-earlier period, an ordinary loss of ¥136 million, compared with ordinary income of ¥59 million, and a quarterly net loss attributable to owners of the parent of ¥143 million, compared with quarterly net income attributable to owners of the parent of ¥50 million, due to lower revenue and raw material prices and energy costs rising beyond expectations.」
Raw material prices and energy costs rose more than expected and, together with lower sales, materialized as factors behind operating, ordinary and net losses. - FY2023-Q1WorsenedAnnual report
「However, the company was unable to absorb the sharp increases in procurement prices and fuel costs, among others, through its own efforts alone, and implemented price revisions.」
The sharp increases in procurement prices and fuel costs, among others, reached levels that could not be absorbed through the company's own efforts alone, leading to the implementation of price revisions. In addition, raw material and energy price increases exceeding assumptions made when the price revisions were implemented became a loss factor. - FY2022WorsenedAnnual report
「The cost of sales ratio deteriorated by 2.1 percentage points from the previous consolidated fiscal year to 85.4%, partly due to higher electricity and fuel costs.」
Raw material and energy prices continued to rise, and the cost of sales ratio deteriorated by 2.1 percentage points due to higher electricity and fuel costs. - FY2022-Q3RestatedAnnual report
「In terms of earnings, despite higher raw material prices and fuel costs, efforts to reduce costs resulted in operating profit of ¥259 million, up 26.9% year on year, ordinary profit of ¥319 million, up 27.5%, and quarterly profit attributable to owners of the parent of ¥293 million, up 50.4%.」
While higher raw material prices and soaring fuel costs continued, operating profit and other measures exceeded the same period of the previous year due to cost reductions. The existence of margin pressure from higher raw material and fuel costs was reconfirmed. - FY2022-Q2WorsenedAnnual report
「In terms of earnings, despite higher raw material prices and fuel costs, efforts to reduce costs resulted in operating profit of ¥27 million, up 135.4% year on year, ordinary profit of ¥59 million, up 38.9%, and quarterly profit attributable to owners of the parent of ¥50 million, up 230.0%.」
In addition to higher raw material prices, soaring fuel costs emerged as a factor putting pressure on profits. Meanwhile, profit exceeded the same period of the previous year due to cost reductions. - FY2022-Q1MaterialisedAnnual report
「In terms of earnings, although we worked to improve efficiency through cost reductions, higher raw material prices and lower productivity due to changes in the product mix resulted in an operating loss of ¥35 million (operating loss of ¥26 million in the same period of the previous year), an ordinary loss of ¥19 million (ordinary loss of ¥5 million), and a quarterly net loss attributable to owners of the parent of ¥55 million (quarterly net loss attributable to owners of the parent of ¥34 million).」
Higher raw material prices were explicitly identified as a loss factor alongside lower productivity, and margin pressure from higher raw material costs materialized in the first-quarter results. - FY2019RestatedAnnual report
「In the industry, consumers' preference for lower prices continued amid concerns about future uncertainty and rising prices, while higher labor costs due to labor shortages and higher logistics costs, among other factors, continued to create a difficult operating environment.」
The company continues to describe the difficult earnings environment caused by rising prices, consumers' preference for lower prices, and higher labor and logistics costs. - FY2018RestatedAnnual report
「In the industry, persistently high vegetable prices due to unfavorable weather and rising gasoline prices, among other factors, continued, while consumers' determination to protect their household finances remained strong, resulting in continued difficult conditions.」
The company continues to describe the difficult earnings environment caused by higher raw material and fuel prices and consumers' determination to protect their household finances. - FY2018-Q3WorsenedAnnual report
「In this industry, the business environment remains challenging as raw material prices rise due to the weaker yen and the implementation of safeguards on imported frozen beef, among other factors, while labor and logistics costs also increase against a backdrop of labor shortages.」
The environment changed from relatively stable imported raw material prices in the previous fiscal year to rising raw material prices due to the trend toward yen depreciation and the implementation of safeguard measures. The company also states that the direct factor behind the decline in operating profit in the current quarter was the increase in various expenses related to establishing a new plant. - FY2017MitigatedAnnual report
「In the consolidated fiscal year, prices of imported raw materials for processed meat products remained relatively stable. However, as consumers increasingly sought to economize and preferred lower prices across food products generally, higher logistics costs and intensifying competition among companies continued to create a difficult operating environment.」
Imported raw material prices remained relatively stable, and the cost of sales ratio improved by 0.7 percentage points, easing the margin pressure from higher raw material costs compared with the previous fiscal year. Meanwhile, the difficult environment caused by consumers' preference for lower prices, logistics costs and competition remains. - FY2017-Q3RestatedAnnual report
「In this industry, prices for raw materials used in processed products remained relatively stable, but a stronger focus on saving and lower prices for food in general intensified sales competition among companies, and difficult conditions continued.」
Raw material prices for processed products remained relatively stable, and margin pressure from higher raw material costs, as seen in the same period of the previous year, is not prominent. Meanwhile, the difficult earnings environment caused by consumers' preference for lower prices and intensifying competition remains. - FY2017-Q2MitigatedAnnual report
「In this industry, imported raw material prices are relatively stable, but consumers continue to favor lower prices amid concerns about the economic outlook. In addition, competition among companies is intensifying, resulting in a challenging business environment.」
Imported raw material prices remained relatively stable, and there is no mention of the margin pressure from higher raw material costs seen in the same period of the previous year. However, the difficult earnings environment caused by consumers' preference for lower prices and intensifying competition remains. - FY2017-Q1MaterialisedAnnual report
「In terms of earnings, although there were factors driving higher sales, the company was unable to fully pass on the increase in procurement costs caused by persistently high domestic meat prices. As a result, operating profit was ¥51 million, compared with operating profit of ¥0 million in the same period of the previous year, ordinary profit was ¥72 million, up 455.9% year on year, and net profit attributable to owners of the parent was ¥59 million, up 833.9% year on year.」
The company was unable to pass through the full increase in procurement costs caused by persistently high domestic meat prices, and margin pressure from higher raw material costs materialized in the current quarter. - FY2016First statedAnnual report
「During the consolidated fiscal year under review, the industry environment remained challenging as the structure of high raw material costs and low product prices continued, including further increases in raw material prices due to higher local prices for imported materials.」
Although revenue was ¥30.366 billion, operating profit was ¥181 million, down 49.3% year on year, demonstrating the earnings pressure caused by higher raw material costs and lower product prices.