Higher Cost of Sales in the Health Supplements Business Due to Rising Raw-Material Prices
First written in FY2024-Q2. 3 of 7 entries say "Materialised", first in FY2024-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2022: 122 of 167 companies on the "Worse" side.
50 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In addition, Imida Peptide is made primarily from chicken breast meat. If the purchase price of the chicken breast meat used as a raw material rises substantially or supplies become insufficient, manufacturing costs may increase and adversely affect the future performance of the Group.」
The disclosure identifies specific raw material price risks for health supplements, namely higher purchase prices and insufficient supplies of the chicken breast meat used in Imida Peptide. - 2026-08-12MitigatedRevision of earnings forecasts
「In the health supplement business, the improvement in profitability from reducing the cost ratio progressed more than expected」
The effect of reducing the cost ratio in response to higher raw material prices appeared in the health supplement business’s operating profit of ¥328 million, which also exceeded the forecast. - FY2025MitigatedAnnual report
「The operating profit margin improved substantially due to the improvement in the cost ratio from price increases implemented in response to higher raw material prices, as well as greater efficiency in advertising and promotional expenses.」
The health supplements business moved from an operating loss in the previous fiscal year to operating profit through price increases in response to higher raw material prices and greater efficiency in advertising and promotional expenses. - FY2025-H1MitigatedAnnual report
「The operating profit margin improved as a result of the positive impact of the price increases implemented at the end of the previous fiscal year to address higher raw material prices and improve the cost ratio, together with substantial reductions and revisions to advertising and promotional expenses following a change in customer acquisition strategy.」
The cost ratio was improved through price increases to address higher raw material prices, and advertising and promotional expenses were also reduced. The health supplements business still reported an operating loss, but the disclosure describes the effect of measures taken in response to rising costs. - FY2024MaterialisedAnnual report
「In addition to significant increases in the prices of raw materials, including those for the core product Imida Peptide, the Company made upfront investments in advertising and promotional expenses for new products. As a result, profit margins declined and operating profit was substantially below the previous fiscal year.」
The significant increase in raw material prices, together with upfront investment in advertising expenses, was reflected over the full year in lower margins and an operating loss in the health supplements business. - FY2024-Q3MaterialisedAnnual report
「Operating profit was below the year-earlier period due to the increase in cost of sales resulting from higher raw material prices, as well as higher advertising expenses and other factors.」
The impact of significantly higher raw material prices on the performance of the health supplements business through increased cost of sales continued to be evident in the nine months ended the third quarter. - FY2024-Q2MaterialisedAnnual report
「Due to the impact of higher raw material prices, including the resulting increase in cost of sales, both net sales and operating profit were below the year-earlier period.」
This is the first explicit identification of higher raw material prices, through their impact on cost of sales, as a standalone cost factor affecting the performance of the health supplements business.