Earnings volatility from dependence on raw materials and price competition
First written in FY2016. 14 of 33 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2026.
Asmo moved to the "Worse" side of this theme in 2016.
0 other companies' latest entry also says "Other".
- FY2026Development of specific measures involving Mexican beef and BtoC sales channelsAnnual report
「The Group will focus on handling Mexican beef, where there is limited competition, while diversifying its B2C sales channels through direct-to-consumer sales, thereby differentiating itself from other companies and focusing on securing flexible earnings.」
In response to dependence on raw materials and price competition, the company explicitly identified a focus on Mexican beef, where competition is limited, and diversification of B2C sales channels through direct-to-consumer sales. - 2026-05-14MitigatedEarnings Presentation
「This product under the Mexican Bonaprim brand is a high-quality, low-priced product compared with other imported beef, including other Mexican beef.」
The company presented differentiation through a proprietary high-quality, low-priced product as a response to earnings volatility from dependence on raw materials and price competition. - FY2026-H1Profit improvement despite lower revenueAnnual report
「Raw material prices remained high, but, as in the wholesale business, the narrower range of cost fluctuations enabled us to secure operating profit. As a result, revenue for the current interim consolidated accounting period was ¥1,873 million, down 8.1% from the previous interim consolidated accounting period, while segment profit (operating profit) was ¥38 million, up 66.4%.」
In the meat business, revenue declined 8.1% as raw material prices remained high, while segment profit increased 66.4% because cost fluctuations were limited. Lower revenue and improved profit are occurring simultaneously amid earnings volatility risk arising from dependence on raw materials and price competition. - FY2025-H1WorsenedAnnual report
「As a result, revenue for the current interim consolidated accounting period was ¥2,037 million, down 10.4% from the previous interim consolidated accounting period, while segment profit (operating profit) was ¥23 million, down 52.8%.」
Higher raw material and import prices, yen depreciation, unstable supply and weaker demand combined to reduce both revenue and profit in the meat business. Earnings volatility risk arising from dependence on raw materials and price competition has worsened. - FY2024WorsenedAnnual report
「As a result, inflation and yen depreciation have affected the prices of imported meat from around the world, causing import volumes to decline. This led to continued increases in domestic meat prices, and we struggled to secure operating profit because sales were conducted in an environment where passing the higher costs on to selling prices was difficult.」
Import volumes declined due to inflation and yen depreciation, making it difficult to pass higher meat prices on to customers, and the company is struggling to secure operating profit. - FY2024-Q3WorsenedAnnual report
「In Japan, meat prices continued to rise due to intermittent yen depreciation from the previous year, and we continued selling in an environment where passing these higher costs on to selling prices was difficult. On the cost side, in addition to higher labor costs, increased exhibition participation expenses caused operating profit to decline from the previous year.」
Segment profit declined 24.2% year on year as the difficulty of passing on the impact of yen depreciation and higher meat prices continued, compounded by increases in labor and sales promotion expenses. - FY2024-Q2WorsenedAnnual report
「In Japan, meat prices continued to surge amid intermittent yen depreciation, making it difficult to pass higher costs on to selling prices. In September in particular, demand declined and the yen approached ¥150 per US dollar, with surging prices depressing demand and hindering profit generation.」
It was difficult to pass higher costs on to selling prices amid yen depreciation and surging meat prices. Weaker demand in September further exacerbated the risk of earnings volatility arising from dependence on raw materials and price competition. - FY2023-Q3MitigatedAnnual report
「Although logistics and storage costs remained high due to elevated crude oil prices, the yen, which had continued to depreciate, finally began to appreciate toward the end of the cumulative third quarter. This contained the cost of procuring products overseas, improved the cost-of-sales ratio compared with the cumulative second quarter and contributed to higher profit.」
Although logistics and storage costs remained high, the trend toward yen appreciation toward the end of the period contained overseas procurement costs and improved the cost-of-sales ratio. - FY2023-Q2WorsenedAnnual report
「Sales in the domestic mail-order business also remained stable and exceeded the results of the same quarter of the previous year. However, operating profit increased only slightly year on year due to persistently high logistics costs caused by surging crude oil prices, higher storage fees and the impact of yen depreciation.」
While mail-order and meat sales increased, persistently high logistics costs due to higher crude oil prices, higher storage fees and yen depreciation pressured profit, limiting profit growth relative to sales growth. - FY2023-Q1MaterialisedAnnual report
「In addition to a higher cost ratio resulting from surging purchase prices, higher selling, general and administrative expenses due to factors including higher crude oil and general prices caused operating profit to decline year on year.」
Higher raw-material, crude oil and general prices actually occurred, lowering operating profit in the meat business through higher cost of sales and selling, general and administrative expenses. - FY2022-Q3WorsenedAnnual report
「Profit margins declined due to labor shortages in meat-producing countries, the upward trend in prices caused by persistently high international demand and higher costs resulting from the yen's depreciation.」
Labor shortages, persistently high international demand, rising meat prices and higher costs due to the yen's depreciation combined to lower profit margins in the meat business. The company is pursuing profit through reductions in freight, storage and labor costs and greater efficiency. - FY2022-Q2MitigatedAnnual report
「By entering into direct contracts with local producers of Mexican beef, the company established the strength of procuring Mexican beef steadily at advantageous prices and was able to steadily increase sales and profit, primarily through sales to wholesalers.」
Despite the global surge in beef prices, the company steadily procured Mexican beef at advantageous prices through direct contracts with local producers, increasing sales and profit in the meat business. - FY2022-Q1MitigatedAnnual report
「In the meat market, futures prices in production areas in other countries surged, but products from Mexico maintained their advantage and could be supplied as purchasing prices remained relatively stable, resulting in a gradual improvement in performance.」
The company explained that it limited the impact of price fluctuations by keeping purchase prices for Mexican products relatively stable and maintaining their advantage in supply, even as forward prices for products from other countries' production areas surged. - FY2021MitigatedAnnual report
「Meanwhile, the company secured profits by adjusting order volumes and reviewing expenses.」
Amid weak food-service and inbound demand, the company sought to secure profits in the meat business by adjusting order volumes and reviewing expenses. - FY2021-Q3WorsenedAnnual report
「As a result, sales for the cumulative third quarter of the fiscal year were ¥2,023 million, down 24.9% year on year, and segment profit (operating profit) was ¥54 million, down 28.7% year on year.」
The downturn in food-service demand caused significant declines in sales and segment profit in the meat business, and the risk of earnings volatility due to price competition and demand fluctuations continues to materialize. - FY2021-Q2WorsenedAnnual report
「Under these conditions, sales in the mail-order business remained stable and were largely unaffected by COVID-19, but challenging conditions continued, including an inability to sell the Mexican chilled beef that the company sells as its highest priority as planned. As a result, sales for the cumulative second quarter of the fiscal year were ¥1,205 million, down 32.2% year on year, and segment profit (operating profit) was ¥21 million, down 55.9% year on year.」
The company could not sell its priority products as planned, resulting in significant declines in sales and segment profit in the meat business. Mail-order sales remained stable, creating a divergence in the impact within the business. - FY2021-Q1WorsenedAnnual report
「Unexpected conditions arose, including an increase in inventories because the Mexican chilled beef that the company sells as its highest priority could not be sold as planned.」
A sharp decline in food-service and inbound demand prevented planned sales of priority products, and inventories actually increased. - FY2020MitigatedAnnual report
「For the full fiscal year, the company increased both sales and profit by curbing unnecessary purchases that would lead to discount sales and continuing to handle its highest-priority products.」
Amid stagnant logistics and changing demand conditions, the company curbed the impact of price competition and earnings volatility by limiting unnecessary purchases, reducing discount sales and maintaining its priority products, leading to higher sales and profit. - FY2020-Q3MitigatedAnnual report
「Under these conditions, sales and sales volumes in the business declined during the consolidated third quarter, but the company maintained stable profits by curbing unnecessary purchases, minimizing discount sales and continuing to handle its highest-priority products.」
Amid declining sales volumes, the company sought to secure stable profits by curbing purchase volumes, reducing discount sales and maintaining its priority products. - FY2020-Q2MitigatedAnnual report
「As a result, goods could not be received into external warehouses, and discount sales intended to reduce inventories disrupted the balance between supply and demand, also affecting the company. However, the company minimized the damage by adjusting forward purchases and other measures. Storage warehouses and logistics companies intend to limit operations during natural disasters going forward, and opportunity losses during such events may continue to occur. The company intends to deepen its business partners' understanding and respond through advance arrangements.」
Goods could not be received into external warehouses, and discount sales disrupted the balance between supply and demand, but the company minimized the damage by adjusting forward purchases. It expects opportunity losses during natural disasters to remain and identifies advance arrangements with business partners as a countermeasure. - FY2020-Q1MitigatedAnnual report
「In logistics, transportation and storage charges rose last fiscal year as work-style reforms increased logistics constraints, but there has been no further increase so far. Storage warehouses and logistics companies intend to limit operations during natural disasters going forward, and opportunity losses during such events may continue to occur. The company intends to deepen its business partners' understanding and respond through advance arrangements.」
The company stated that transportation and storage charges have not risen further at present and indicated a policy of responding through advance arrangements with business partners. At the same time, it expects logistics stoppages and opportunity losses during natural disasters to remain a risk. - FY2019WorsenedAnnual report
「In logistics, the effects of natural disasters that occurred frequently from summer through autumn remained, and logistics expenses increased during the consolidated fiscal year due to higher transportation, storage and other charges associated with greater logistics constraints resulting from work-style reforms. This trend is expected to continue.」
In addition to the effects of natural disasters, logistics constraints resulting from work-style reforms and surging transportation and storage charges occurred, increasing logistics expenses. The company also indicated that high costs are expected to continue. - FY2019-Q3WorsenedAnnual report
「The impact continued from October onward, and increased logistics constraints, together with the impact of revised charges, constrained sales and operating profit during the cumulative third quarter of the fiscal year.」
Logistics constraints following natural disasters continued from October onward, and the impact of revised charges also constrained sales and operating profit. - FY2019-Q2RestatedAnnual report
「In the アスモトレーディング business, the challenging operating environment continued as the company was forced to accept higher purchase prices due to higher logistics costs and price competition with overseas markets.」
Higher logistics costs and purchase prices caused by price competition with overseas markets continued, reaffirming the challenging earnings environment in the meat business. - FY2019-Q1RestatedAnnual report
「In the アスモトレーディング business, the challenging operating environment continued as the company was forced to raise prices due to higher logistics costs and price competition with overseas markets.」
Rising logistics costs and price increases caused by competition with overseas markets continued, reaffirming the challenging earnings environment in the meat business. - FY2018WorsenedAnnual report
「In the アスモトレーディング business, the challenging operating environment continued due to higher logistics costs and intensifying sales competition. In addition, the slight decline in segment profit was attributable to the yen being relatively weaker than in the previous consolidated fiscal year and surging logistics and other costs.」
Higher logistics costs, intensifying sales competition, yen depreciation and surging logistics and other costs continued, and segment profit declined 18.0% year on year despite higher sales. - FY2018-Q3RestatedAnnual report
「In the アスモトレーディング business, the challenging operating environment continued due to higher logistics costs and intensifying sales competition.」
The company reaffirmed the challenging earnings environment in the meat business caused by higher logistics costs and intensifying sales competition. - FY2018-Q2WorsenedAnnual report
「In the アスモトレーディング business, the operating environment remains difficult for maintaining stable operations, due to higher logistics costs resulting from labor shortages and higher tariffs on frozen beef from the United States, Canada, New Zealand, and other countries following the safeguard measure introduced in August.」
The company states that higher logistics costs resulting from labor shortages have made it difficult to maintain stable operations in the meat business. - FY2018-Q1RestatedAnnual report
「In the アスモトレーディング business, the challenging operating environment continued due to higher logistics costs and intensifying sales competition.」
The company reaffirmed the challenging earnings environment in the meat business caused by higher logistics costs and intensifying sales competition. - FY2017RestatedAnnual report
「Raw materials, primarily beef and pork, account for a major portion of sales in the アスモトレーディング business of the group. It is difficult to differentiate these raw materials from those of competitors, and the business is exposed to intense price competition.」
The company reaffirmed its dependence on raw-material sales, the difficulty of differentiation and the earnings impact of price competition. - FY2017-Q3RestatedAnnual report
「In the アスモトレーディング business, the challenging operating environment continued due to higher logistics costs and intensifying sales competition.」
The company continues to describe the meat business as operating in a challenging earnings environment due to higher logistics costs and intensifying sales competition. - FY2017-Q2WorsenedAnnual report
「In the アスモトレーディング business, the challenging operating environment continued due to higher logistics costs resulting from labor and vehicle shortages and intensifying sales competition.」
Higher logistics costs caused by labor and vehicle shortages, in addition to intensifying sales competition, were explicitly identified, leaving the meat business in a challenging environment of price competition and earnings volatility. - FY2016First statedAnnual report
「Raw materials, primarily beef and pork, account for a major portion of sales in the アスモトレーディング business of the group. It is difficult to differentiate these raw materials from those of competitors, and the business is exposed to intense price competition.」
The company identifies dependence on raw-material sales and difficulty differentiating its products as factors affecting performance through price competition.