Cost pressure from rising raw material prices and labor costs
First written in FY2017-Q1. 19 of 35 entries say "Restated". Latest entry: FY2027-H1.
Karula moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2022: 41 of 48 companies on the "Worse" side.
7 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「In the food service industry, the market is steadily expanding against a backdrop of firm inbound demand and a growing preference for dining out. However, the operating environment remains challenging in terms of costs, including continued increases in raw material costs, higher labor costs due to a serious labor shortage, and rising logistics costs.」
In addition to raw material and labor costs, the company explicitly identified rising logistics costs. In practice, it has been unable to fully absorb the increases in labor and raw material costs, which have become apparent as declines in operating profit and other earnings measures. - FY2026MaterialisedAnnual report
「In the food service industry, revenue remained firm on recovering foot traffic and inbound demand. However, further increases in raw material costs, particularly rice prices, and rising labor costs amid a severe labor shortage weighed on profit, and the operating environment remains challenging.」
The company explains that, despite a recovery in revenue driven by foot traffic and inbound demand, higher raw material and labor costs are weighing on profit, as reflected in the 16.2% decline in operating profit and 16.8% decline in ordinary profit for the period. - FY2026-H1MaterialisedAnnual report
「Operating profit was unable to fully absorb increases in labor, raw material and logistics costs, and amounted to ¥264 million, down 6.1% year on year.」
The company was unable to absorb increases in labor, raw material and logistics costs, which have materialized in its results as a decline in operating profit. - FY2025-H1RestatedAnnual report
「In the food service industry, domestic consumer activity has recovered and economic activity has picked up, supported by stronger inbound demand and a recovery in personal consumption. However, the operating environment remains challenging, with persistently high raw material costs and rising labor costs.」
The company acknowledges the recovery in inbound demand and personal consumption, while continuing to point to cost pressures from persistently high raw material costs and rising labor costs. - FY2025-Q1RestatedAnnual report
「In the food-service industry, domestic consumption has recovered and economic activity has become more active due to expanding inbound demand and a recovery in personal consumption. At the same time, the operating environment remains challenging as higher labor costs resulting from wage increases and higher recruitment costs to address labor shortages, together with persistently high raw material costs, have led to higher expenses.」
While acknowledging the recovery in domestic consumption and inbound demand, the company explains that cost pressures from higher raw material costs, labor costs and recruitment costs have continued. These are treated as costs that have materialized. - FY2024RestatedAnnual report
「At the same time, the operating environment remains challenging due to food-price increases stemming from soaring raw material and resource prices, as well as soaring labor and recruitment costs caused by labor shortages accompanying the recovery in customer traffic.」
The company continues to disclose cost pressures from higher raw material and resource prices, food prices, labor costs and recruitment costs. It also explicitly identifies labor shortages accompanying the recovery in customer traffic. - FY2024-Q3RestatedAnnual report
「At the same time, essential operating costs, including raw materials and resource prices, labor costs associated with labor shortages and recruitment costs, have risen across the board, and the operating environment remains challenging.」
The company continues to recognize that essential costs, including raw material and resource prices, labor costs and recruitment costs, have risen. It describes these cost increases as part of the actual operating environment. - FY2024-Q2RestatedAnnual report
「In the food-service industry, customer traffic has recovered steadily and inbound demand has expanded since various COVID-19 restrictions were eased, showing signs of a recovery in revenue. However, the operating environment remains challenging as essential operating costs, including raw materials, utilities, labor costs associated with labor shortages and recruitment costs, have risen across the board.」
While acknowledging the recovery in customer traffic and inbound demand, the company explains that increases in essential costs, including raw materials, utilities, labor costs and recruitment costs, have continued. - FY2024-Q1WorsenedAnnual report
「In the food-service industry, although customer traffic has gradually begun to recover as resistance to dining in stores has eased following the easing of restrictions associated with COVID-19 and the downgrading of its classification under the Infectious Diseases Control Law, the operating environment remains challenging due to soaring raw material and utility costs, and higher labor and recruitment costs caused by labor shortages.」
In addition to soaring raw material prices, the company explicitly identifies utility costs, labor costs associated with labor shortages and rising recruitment costs as cost pressures, broadening the range of affected expense items. - FY2023MaterialisedAnnual report
「Regarding the impact of COVID-19, a gradual recovery is expected due to factors including the reclassification of the disease to Category 5 under the Infectious Diseases Control Law. However, expenses have increased because of soaring energy-resource and raw material prices resulting from yen depreciation, materially affecting the company’s operating performance.」
The company explains that soaring energy-resource and raw material prices due to yen depreciation actually affected performance through higher expenses. - FY2023-Q3RestatedAnnual report
「Regarding costs, fluctuations in raw material prices caused by soaring prices have continued, and the company has sought to use raw materials appropriately through strict loss control.」
The company continues to recognize soaring and fluctuating raw material prices and identifies loss control as a response. - FY2023-Q2RestatedAnnual report
「Regarding costs, fluctuations in raw material prices caused by soaring prices have continued, and the company has sought to use raw materials appropriately through strict loss control. It has also refreshed menus and revised prices for its existing business formats, working to improve gross margins and average spend per customer by setting appropriate prices for soaring raw material costs.」
The company recognizes that fluctuations and soaring raw material prices have continued and discloses menu refreshes, price revisions and appropriate pricing as responses. - FY2023-Q1WorsenedAnnual report
「Furthermore, energy resources, including crude oil, and raw material prices have soared because of geopolitical risks such as Russia’s invasion of Ukraine. Further price increases are a concern given expectations for a weaker yen, and the outlook for the economy remains uncertain.」
In addition to existing cost pressures from raw materials and labor, the company identifies geopolitical risks, soaring energy-resource prices and concerns over further price increases due to yen depreciation, indicating that the factors driving cost increases have expanded. - FY2022WorsenedAnnual report
「In response to soaring purchase prices for food ingredients, the company will seek to stabilize the cost ratio. It will also reduce expenses by lowering rent and responding to soaring energy costs」
In addition to soaring purchase prices for food ingredients, soaring energy costs are explicitly identified, broadening the scope of cost pressures. - FY2022-Q2RestatedAnnual report
「The company sought to improve its gross margin by setting appropriate prices for food ingredients, whose costs have risen year after year.」
The company continues to recognize soaring food-ingredient prices and presents appropriate pricing as a response aimed at improving the gross margin. - FY2020RestatedAnnual report
「In the food-service industry, the operating environment is becoming even more challenging due to rising labor costs caused by labor shortages, higher costs resulting from increases in food-ingredient prices and intensifying competition with the prepared-food market following the introduction of the reduced tax rate in October last year, as well as the growing emphasis on quality, including customers’ awareness of food safety and reliability.」
The company continues to describe cost pressures from labor shortages, higher labor costs and rising food-ingredient prices. - FY2020-Q3WorsenedAnnual report
「As for profits, although higher food-ingredient prices raised the cost ratio and higher minimum wages and hourly rates for part-time and temporary staff due to labor shortages increased labor costs, operating profit and ordinary profit increased as a result of cost savings in advertising, sales promotion and other expenses.」
In addition to higher cost ratios caused by rising food-ingredient prices, increases in the minimum wage and higher hourly rates due to labor shortages resulted in higher labor costs. - FY2020-Q2MaterialisedAnnual report
「As for profits, ordinary profit declined year on year because higher food-ingredient prices reduced gross profit and labor costs increased at newly opened stores.」
Higher food-ingredient prices and increased labor costs at newly opened stores were reflected in lower gross profit and ordinary profit. - FY2020-Q1RestatedAnnual report
「In the food-service industry, the operating environment is becoming even more challenging due to rising labor costs caused by labor shortages, higher costs resulting from increases in food-ingredient prices amid inflation, intensifying cross-industry competition with the prepared-food market, which is centered on prepared ingredients and side dishes, and the growing emphasis on quality, including customers’ awareness of food safety and reliability.」
The company continues to identify labor shortages, higher labor costs and food-ingredient prices, and intensifying competition with the prepared-food market as sources of cost pressure. - FY2019RestatedAnnual report
「The operating environment is becoming even more challenging due to higher costs resulting from labor shortages and increases in food-ingredient prices amid inflation, intensifying competition across industry boundaries with the prepared-food market, and the growing emphasis on quality, including customers’ awareness of food safety and reliability.」
The company continues to identify labor costs, food-ingredient prices, competition with the prepared-food market and quality-conscious consumers as sources of cost and competitive pressure. - FY2019-Q3RestatedAnnual report
「In the food-service industry, the operating environment is becoming even more challenging due to rising labor costs caused by labor shortages, higher costs resulting from increases in food-ingredient prices amid inflation, intensifying cross-industry competition with the prepared-food market, which is centered on prepared ingredients and side dishes, and the growing emphasis customers place on quality, including the safety and reliability of the food they consume.」
The company continues to describe cost pressures and a challenging operating environment resulting from labor shortages, higher labor costs and food-ingredient prices, and intensifying competition with the prepared-food market. - FY2019-Q2RestatedAnnual report
「In the food-service industry, the operating environment is becoming even more challenging due to rising labor costs caused by labor shortages, higher costs resulting from increases in food-ingredient prices amid inflation, and intensifying cross-industry competition with the prepared-food market, which is centered on prepared ingredients and side dishes.」
The company continues to describe cost pressures and a challenging operating environment resulting from labor shortages, higher labor costs and food-ingredient prices, and intensifying competition with the prepared-food market. - FY2019-Q1RestatedAnnual report
「In the food-service industry, the operating environment is becoming even more challenging due to rising labor costs caused by labor shortages, higher costs resulting from increases in food-ingredient prices amid inflation, and intensifying cross-industry competition with the prepared-food market, which is centered on prepared ingredients and side dishes.」
The company continues to describe a challenging operating environment resulting from labor shortages, higher labor costs and food-ingredient prices, and intensifying competition with the prepared-food market. - FY2018WorsenedAnnual report
「The operating environment is becoming even more challenging due to rising labor costs caused by labor shortages, higher costs including vegetables and other food ingredients because of poor weather, and intensifying cross-industry competition with the prepared-food market, which is centered on prepared ingredients and side dishes.」
In addition to the previously cited increases in labor costs and raw material prices, the company cites labor shortages, higher food-ingredient prices caused by poor weather and competition with the prepared-food market, describing the operating environment as increasingly challenging. - FY2018-Q3Changes in cost driversAnnual report
「Expenses increased due to initial costs associated with opening new stores and higher utility costs.」
Amid continued expense increases, this explanation identifies higher utility costs, rather than the previously cited raw material prices and labor costs, as a factor. - FY2018-Q1WorsenedAnnual report
「In addition to further increases in labor costs due to labor shortages and soaring raw material prices amid rising prices, the operating environment remains challenging because of growing uncertainty over the global economy arising from developments under the Trump administration and the UK's withdrawal from the EU, among other factors.」
The description has intensified from the previous references to continued increases in raw material prices and labor costs to further labor-cost increases due to labor shortages and soaring raw material prices. - FY2017MaterialisedAnnual report
「In addition to higher raw material prices and labor costs, the major factors behind the increase in expenses included the opening costs of the new stores mentioned above and renovation costs associated with changing the business formats of Kakugurume Motokura and Juwari Soba Marumatsu Koyodai.」
Higher raw material prices and labor costs increased full-year expenses, while new-store opening costs and renovation costs added to the burden. - FY2017-Q3RestatedAnnual report
「The operating environment remains challenging, as persistently high raw material prices and higher personnel costs resulting from changes in the employment environment have added to the burden.」
The company continues to describe a challenging operating environment due to persistently high raw material prices and higher personnel costs, and later explains that rising labor costs increased expenses. - FY2017-Q2RestatedAnnual report
「Expenses increased as raw material prices and labor costs continued to rise.」
Continued increases in raw material prices and labor costs continue to be reflected in performance through higher expenses. - FY2017-Q1MaterialisedAnnual report
「Raw material prices and labor costs also continued to rise, resulting in higher expenses.」
Continued increases in raw material prices and labor costs were reflected in higher expenses during the quarter.