Declining Purchasing Power and Demand Due to Economic and Business Downturn
First written in FY2017. 3 of 6 entries say "Materialised", first in FY2019. Latest entry: FY2021-Q3.
Japan Tobacco moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 9 of 14 companies on the "Worse" side.
3 other companies' latest entry also says "Materialised".
- FY2021-Q3MaterialisedAnnual report
「In the processed foods business, sales of products supplied to the food-service sector in the frozen and ambient-temperature businesses have continued to decline, due in part to the impact of requests for restaurants to suspend operations.」
The deterioration in food-service demand and consumer behavior continues to be reflected in actual results as lower sales of products supplied to the food-service sector in the frozen and ambient-temperature businesses. - FY2020-Q2MaterialisedAnnual report
「Revenue decreased 4.8% year on year. Although sales of household products in the frozen and ambient business increased on higher demand, sales declined due to lower demand for foodservice products in the frozen and ambient and seasoning businesses and lower demand in the bakery business, amid the effects of voluntary restrictions on going out and other factors following the declaration of a state of emergency.」
Changes in consumer behavior associated with requests to refrain from going out were reflected in actual results as lower demand for products supplied to the food-service sector and bakeries, and as lower revenue in the processed foods business. - FY2019MaterialisedAnnual report
「In Japan, although a gradual economic recovery is also evident against a backdrop of improving employment and income conditions, the consumption tax was raised to 10% on 1 October 2019, and uncertainty remains as to whether this trend will continue.」
The consumption tax rate was raised to 10% on 1 October 2019, and this was reflected in actual conditions as a factor contributing to economic and demand risk. - FY2019-Q3Impact of consumption tax increase becomes apparentAnnual report
「In addition, because the price increase in October 2019, when the consumption tax was raised, was smaller than the increase in October 2018, when the tobacco tax was raised, significantly less pre-increase demand occurred year on year, which was also a factor behind the high rate of decline.」
The smaller price increase in October 2019, when the consumption tax was raised, and the resulting significant year-on-year decline in pre-increase demand were cited as factors behind the sharp decline in cigarette sales volumes. - FY2018Planned consumption tax increaseAnnual report
「In Japan as well, although a gradual economic recovery has been observed against the backdrop of improvements in employment and income conditions, the consumption tax is scheduled to increase to 10% on 1 October 2019. Accordingly, it remains difficult to predict whether this trend will continue.」
Regarding economic and demand risks, the scheduled increase in the consumption tax to 10% on 1 October 2019 is cited as a new factor weighing on demand. - FY2017First statedAnnual report
「As described above, economic deterioration and other factors may reduce customers’ purchasing power or willingness to consume and may shift customer demand toward lower-priced brands or categories. Demand for the Group’s processed foods may likewise decline. These events could adversely affect the Group’s business performance.」
The company identifies declining purchasing power and willingness to consume due to economic deterioration, shifts in demand toward lower-priced brands, and declining demand for processed foods as common risks.