Foreign-Exchange Risk Associated with Overseas Procurement
First written in FY2020. 4 of 10 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2022: 33 of 58 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In the investment and consulting business as well, as product procurement costs increased amid the entrenched trend toward yen depreciation, the Company worked to secure profits through the pass-through of costs into prices, optimization of inventory management and reductions in fixed costs. As a result, the gross profit margin improved year on year.」
Although higher procurement costs resulting from the weaker yen continued, the gross profit margin improved year on year through the pass-through of costs into prices, optimization of inventory management and reductions in fixed costs. - FY2025MitigatedAnnual report
「Although product procurement costs increased during the current consolidated fiscal year as the trend toward yen depreciation became entrenched, the gross profit margin improved from the previous fiscal year as the Company proceeded with sales price revisions.」
Although the weaker yen and higher procurement costs associated with overseas procurement continued, sales price revisions improved the gross profit margin in the investment and consulting business from the previous fiscal year, partly mitigating the impact. - FY2025-H1WorsenedAnnual report
「However, the rapid depreciation of the yen caused the profit margins of Group companies whose operations are based on imported procurement to decline.」
Regarding the foreign exchange risk associated with overseas procurement, for which the Company had explained in the previous fiscal year that sales price revisions had partly mitigated the impact, it states that the rapid depreciation of the yen actually resulted in lower profit margins. - FY2024MitigatedAnnual report
「In the previous consolidated fiscal year, gross profit margins declined, particularly at Group companies whose operations are based on imported procurement, due to the impact of the rapid depreciation of the yen and higher product procurement costs. In the current consolidated fiscal year, however, gross profit margins increased year on year as the Group proceeded with sales price revisions.」
Although the impact of the weaker yen and higher procurement costs associated with overseas procurement remained, sales price revisions increased the gross profit margin in the investment and consulting business year on year, partly mitigating the impact on profit margins. - FY2024-Q2RestatedAnnual report
「During the first half of the fiscal year, Japan's economy showed signs of a gradual recovery in personal consumption following the easing of restrictions on activities related to COVID-19. However, the continuing depreciation of the yen and soaring energy and raw material prices left the business environment uncertain.」
It states that the depreciation of the yen, which could affect overseas procurement, continues, reconfirming concerns about the external environment, including foreign exchange risk. - FY2023-Q3RestatedAnnual report
「Although revenue increased in the investment and consulting business due to contributions from a subsidiary that joined the Group in the previous fiscal year and the results of order-taking activities by some existing subsidiaries, the sharp depreciation of the yen and other factors put pressure on the profits of Group companies whose business bases are overseas procurement.」
The impact of the sharp depreciation of the yen on the profits of Group companies whose operations are based on overseas procurement continues. - FY2023-Q2RestatedAnnual report
「The rapid depreciation of the yen, driven by worsening global conditions and interest-rate policies in various countries, put pressure on the profit margins of Group companies whose operations are based on imported procurement.」
It states that the rapid depreciation of the yen continues to put pressure on the profit margins of Group companies whose operations are based on overseas procurement. - FY2023-Q1MaterialisedAnnual report
「The rapid depreciation of the yen, driven by worsening global conditions and interest-rate policies in various countries, has become a factor increasing the cost ratio at Group companies whose operations are based on imported procurement.」
It states that the rapid depreciation of the yen has actually increased the cost ratio and put pressure on profits at Group companies whose operations are based on overseas procurement. - FY2021RestatedAnnual report
「In the TGBS business, most goods and products are procured overseas by 株式会社TGM, ギャラックス貿易株式会社 and other companies. The Group seeks to minimize the impact of foreign exchange fluctuations on performance by, among other measures, entering into foreign exchange forward transactions. However, sharp exchange-rate fluctuations beyond forecasts could have a significant impact on the Group's performance.」
It reconfirms the foreign exchange risk associated with overseas procurement by TGM, ギャラックス貿易 and other companies, and the response through foreign exchange forwards. - FY2020First statedAnnual report
「In the TGBS business, most goods and products are procured overseas by 株式会社TGM, ギャラックス貿易株式会社 and other companies. The Group seeks to minimize the impact of foreign exchange fluctuations on performance by, among other measures, entering into foreign exchange forward transactions. However, sharp exchange-rate fluctuations beyond forecasts could have a significant impact on the Group's performance.」
It explicitly identifies the impact on performance from sharp foreign exchange fluctuations as a new risk, against the backdrop of expanded overseas procurement by TGM, ギャラックス貿易 and other companies.