Pressure on operating profit from higher freight costs
First written in FY2019-Q3. 14 of 21 entries say "Materialised", first in FY2020-Q1. Latest entry: FY2027-H1.
Arata 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 2017: 4 of 7 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Selling, general and administrative expenses increased 7.0% year on year due to the impact of goodwill and other items arising from M&A and the addition of new subsidiaries to consolidation, as well as higher logistics outsourcing fees, freight and storage fees, and part-time labor costs resulting from the increase in the minimum wage. The SG&A ratio increased 0.2 percentage point year on year.」
Logistics outsourcing fees, freight and storage fees continued to increase, while higher part-time labor costs resulting from M&A, the addition of new subsidiaries to consolidation and increases in the minimum wage also contributed to a 7.0% year-on-year increase in SG&A expenses. - FY2026WorsenedAnnual report
「Regarding selling, general and administrative expenses, the increase in personnel and logistics costs amid labor shortages and delays in cost controls to address inflation-driven price increases were compounded by higher rent and expenses from temporary factors.」
Inflation, labor shortages, and increases in logistics costs, personnel expenses and rent combined to push SG&A expenses to 103.6% of the level in the same period of the previous year, while the SG&A ratio rose 0.13 percentage point. - FY2026-H1MaterialisedAnnual report
「Regarding selling, general and administrative expenses, increases in logistics and personnel expenses were compounded by higher rent and expenses from temporary factors, as well as higher employee salaries and part-time labor costs. SG&A expenses were 103.9% of the level in the same period of the previous year, and the SG&A ratio increased 0.12 percentage point year on year.」
Increases in logistics costs, personnel expenses and rent actually materialized. SG&A expenses were 103.9% of the level in the same period of the previous year, and the SG&A ratio rose 0.12 percentage point. Packing, packaging and transportation expenses also increased from ¥13,522 million in the same period of the previous year to ¥14,163 million. - FY2025MaterialisedAnnual report
「Selling, general and administrative expenses were significantly affected by increases in logistics and personnel expenses. Logistics costs increased because freight and storage fees rose in response to requests from the Company's transportation partners and other factors related to the 2024 logistics issue.」
In response to the 2024 logistics issue, freight and storage fees increased, and packing, packaging and transportation expenses increased from ¥25,690 million to ¥27,344 million. - FY2025-H1MaterialisedAnnual report
「Selling, general and administrative expenses were significantly affected by increases in logistics and personnel expenses. Logistics costs increased because freight and storage fees rose in response to requests from the Company's transportation partners and other factors related to the 2024 logistics issue.」
The Company stated that freight and storage fees actually increased in response to the 2024 logistics issue and requests from transportation providers. Packing, packaging and transportation expenses increased from ¥12,555 million in the same period of the previous year to ¥13,522 million. - FY2024MaterialisedAnnual report
「Regarding selling, general and administrative expenses, delivery costs and other expenses increased due to the impact of the 2024 logistics issue in line with strong sales. In addition, as part of its long-term human resources strategy, the Company is actively investing in human capital. Under the new personnel system launched in April 2023, efforts to raise employee salary levels resulted in higher personnel expenses.」
The Company stated that higher delivery costs and other expenses due to the 2024 logistics issue actually materialized, and that higher personnel expenses resulting from the personnel system were also a factor behind the increase in SG&A expenses. - FY2024-Q3MaterialisedAnnual report
「Regarding selling, general and administrative expenses, delivery costs and other expenses increased due to higher resource prices. In addition, as part of its long-term human resources strategy, the Company is actively investing in human capital. Under the new personnel system launched in April 2023, efforts to raise employee salary levels resulted in an approximately 9% increase in salary per employee, causing total personnel expenses to rise.」
The Company stated that higher delivery costs and other expenses due to rising resource prices continued to materialize. It also noted the increase in personnel expenses resulting from investment in human capital. - FY2024-Q2MaterialisedAnnual report
「Regarding selling, general and administrative expenses, delivery costs and other expenses increased due to higher resource prices.」
The Company stated that delivery costs and other expenses actually increased due to higher resource prices. Meanwhile, productivity improvement measures kept the increase in SG&A expenses 1.8 percentage points below the increase in sales. - FY2024-Q1MaterialisedAnnual report
「Selling, general and administrative expenses were held to a 4.3% year-on-year increase, 2.6 percentage points below the 6.9% increase in sales, as the company implemented various measures to improve logistics efficiency and optimize staffing through the use of state-of-the-art material-handling equipment, AI and other technologies while electricity and delivery costs rose due to higher resource prices.」
While stating that electricity charges, delivery costs and other expenses continued to increase due to higher resource prices, the Company said that logistics efficiency initiatives and other measures kept the increase in SG&A expenses 2.6 percentage points below the increase in sales. - FY2023-Q3MaterialisedAnnual report
「Selling, general and administrative expenses were held to a 3.7% year-on-year increase, 0.3 percentage points below the 4.0% increase in sales, as the company implemented various productivity improvement measures while electricity and delivery costs rose due to higher resource prices.」
The Company stated that electricity charges, delivery costs and other expenses increased due to higher resource prices, indicating that higher logistics-related costs also materialized during the quarter. Meanwhile, productivity improvement initiatives kept the increase in SG&A expenses 0.3 percentage point below the increase in sales. - FY2023-Q2MaterialisedAnnual report
「Selling, general and administrative expenses were held to a 3.7% year-on-year increase, in line with the 3.7% increase in sales, as the company sought to improve productivity through logistics efficiency measures and other initiatives while electricity and delivery costs rose due to higher crude oil prices.」
The Company stated that electricity charges, delivery costs and other expenses increased due to higher crude oil prices, indicating that the risk of higher logistics costs materialized during the quarter as well. Meanwhile, logistics efficiency initiatives kept the increase in SG&A expenses at the same level as the increase in sales. - FY2023-Q1MaterialisedAnnual report
「Regarding selling, general and administrative expenses, while electricity charges, delivery costs and other expenses increased amid higher crude oil prices, the company sought to improve productivity through greater logistics efficiency and other measures. As a result, while sales increased 2.9% year on year, selling, general and administrative expenses increased 2.8% year on year, limiting the increase by 0.1 percentage points.」
The Company stated that electricity charges, delivery costs and other expenses actually increased due to higher crude oil prices. Meanwhile, logistics efficiency initiatives and other measures kept the increase in SG&A expenses 0.1 percentage point below the increase in sales. - FY2022MitigatedAnnual report
「Regarding selling, general and administrative expenses, the company improved productivity and contained expenses through a reduction in headcount resulting from business improvements and a review of staffing at logistics centers, as well as through greater logistics efficiency.」
The Company stated that expenses, including logistics-related costs, were controlled through logistics efficiency initiatives and a review of personnel allocation. - FY2022-Q2MitigatedAnnual report
「At our logistics centers, we prioritized employee safety and health, continued operations by implementing measures to prevent the spread of infection, and introduced staggered working hours and remote work at each location. We worked to prevent infections and maintain business continuity during the COVID-19 pandemic, while also improving productivity by controlling logistics expenses.」
The Company continues to control logistics expenses and work to improve productivity. - FY2022-Q1MitigatedAnnual report
「Selling, general and administrative expenses improved as the company sought to contain logistics costs and improve productivity by promoting business activities adapted to the new lifestyle.」
The Company stated that it had taken steps to address the pressure on earnings from logistics costs and freight, as previously disclosed, by controlling logistics expenses. - FY2021-Q2MitigatedAnnual report
「Regarding selling, general and administrative expenses, the Company restrained the increase in freight costs through improved delivery efficiency,」
The Company stated that improved delivery efficiency restrained the increase in freight costs that had previously pressured operating profit. - FY2020MaterialisedAnnual report
「While logistics-related costs such as freight expenses increased as a result of higher sales, the company contained the increase in indirect operating expenses through measures such as consolidating operations and improved the selling, general and administrative expense ratio by 0.08 percentage points from the same period of the previous year, to 9.11%.」
While logistics-related costs such as freight continued to increase with sales growth, the Company restrained the increase in indirect operating costs through the consolidation of operations. - FY2020-Q3MaterialisedAnnual report
「In terms of earnings, as logistics-related costs such as freight increased with the expansion of sales, the Company restrained the increase in indirect operating costs through the consolidation of operations and other measures,」
The Company stated that logistics-related costs such as freight increased as sales expanded, while the increase in indirect operating costs was restrained through the consolidation of operations. - FY2020-Q2MaterialisedAnnual report
「In terms of earnings, as logistics-related costs such as freight increased with the expansion of sales, the Company restrained the increase in indirect operating costs through the consolidation of operations and other measures」
The Company stated that logistics-related costs such as freight increased as sales expanded, while the increase in indirect operating costs was restrained through the consolidation of operations and other measures. - FY2020-Q1MaterialisedAnnual report
「In terms of profitability, the gross margin improved to 10.39%, up 0.03 percentage points from the previous year, through stronger sales of highly profitable categories. However, higher logistics costs and maintenance and repair expenses for buildings and other assets increased the SG&A ratio by 0.06 percentage points to 9.11%, resulting in only a marginal year-on-year increase in operating income for the three months ended 30 June and an operating margin of 1.28%.」
The Company stated that higher logistics costs, together with increased repairs and maintenance costs for buildings and other assets, raised the SG&A ratio and limited growth in the operating profit margin. - FY2019-Q3First statedAnnual report
「Regarding gross profit, the Company had sought to improve the gross profit margin by expanding sales of highly profitable categories. However, due to higher freight costs, operating profit in the first nine months of the current consolidated fiscal year increased only slightly from the same period of the previous year, and the operating profit margin was 1.20%.」
Higher freight costs can be independently identified for the first time as a factor limiting growth in operating profit in the first nine months. The increase in freight costs itself is not disclosed, but the resulting impact is reflected in the 1.20% operating profit margin.