Risk of Higher Manufacturing Costs Due to Rising Raw Material Prices and Labor Costs
First written in FY2017. 15 of 30 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2027-H1.
Warabeya Nichiyo Holdings moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
28 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「Operating profit was ¥3.969 billion, down ¥1.320 billion, or 25.0%, due to higher raw material prices and labor costs in the food-related business, as well as the impact of the suspension of operations at the Sapporo Plant.」
Higher raw material prices and labor costs emerged in actual results as risks putting pressure on manufacturing costs and profit, with operating profit in the food-related business down 25.0%. - FY2026ReframedAnnual report
「However, if the increase in manufacturing costs resulting from higher raw material and labor costs exceeds the assumptions of the Company Group, it may affect the Company's Group's business results.」
The increase in manufacturing costs due to rising raw material and labor costs is presented as a risk to business results amid an operating environment that includes inflation and consumers' inclination to economize. - 2026-04-08MaterialisedEarnings presentation
「Higher revenue, including from product specification revisions, absorbed higher manufacturing costs; lower plant reorganization costs also contributed to higher operating income」
Although higher manufacturing costs appeared in actual results as a factor reducing full-year operating income, the Company explained that they were absorbed by higher revenue and other effects. - FY2026-H1ReframedAnnual report
「In the food industry, as price increases for products continue amid rising raw material prices, labor costs, and logistics costs, consumers are becoming more inclined to economize due to concerns about the outlook, and difficult conditions continue.」
The discussion has been reorganized from a focus on the burden of higher manufacturing costs due to rising raw material and labor costs to a description of the operating environment, including higher costs such as logistics expenses, continued product price increases, and consumers' inclination to economize. - FY2025-H1ReframedAnnual report
「In the food industry, product price increases continue as a result of rising raw material and labor costs, while consumers are becoming increasingly inclined to economize due to concerns about the outlook, and challenging conditions persist.」
The discussion has expanded from a focus on the burden of higher manufacturing costs due to rising raw material and labor costs to a description of the operating environment, including continued product price increases and consumers' growing inclination to economize. - FY2025-Q1RestatedAnnual report
「In the food industry, companies are required to respond to consumers' diversifying needs while price increases for products continue as a result of rising raw material and labor costs.」
The continued rise in raw material and labor costs and its impact in driving product price increases continue to be disclosed. - FY2024MaterialisedAnnual report
「In terms of profit, although each segment was affected by higher raw material and labor costs, operating profit was ¥6,380 million, up ¥1,394 million, or 28.0% from the previous fiscal year, due to the recovery in sales in the food-related business and product specification reviews, among other factors.」
Rising raw material and labor costs were cited as factors that actually affected profit in each segment. Meanwhile, operating profit increased due to the recovery in sales and product specification reviews. - FY2024-Q2RestatedAnnual report
「Although each segment was affected by higher raw material prices and labor costs, operating profit was ¥4.491 billion, up ¥1.115 billion, or 33.0%, year on year, due to the recovery in revenue from the food-related business and revisions to product specifications.」
Rising raw material and labor costs continue to be cited as factors affecting profit in each segment. Meanwhile, operating profit increased due to the recovery in sales and product specification reviews. - FY2024-Q1RestatedAnnual report
「In terms of profit, although each segment was affected by higher raw material and labor costs and persistently high energy prices, operating profit was ¥2,369 million, up ¥675 million, or 39.9% year on year, due to the recovery in sales in the food-related business and product specification reviews, among other factors.」
Rising raw material and labor costs and persistently high energy prices continue to be cited as factors affecting profit in each segment. Meanwhile, operating profit increased 39.9% year on year. - FY2023MaterialisedAnnual report
「In terms of profit, although each segment was affected by higher raw material and energy prices, operating profit was ¥4,985 million, up ¥544 million, or 12.3% from the previous fiscal year, due to the recovery in sales in the food-related business and product specification reviews, among other factors.」
It was disclosed that rising raw material and energy prices actually affected profit in each segment. Meanwhile, operating profit increased 12.3% due to the recovery in sales and product specification reviews. - FY2023-Q3MaterialisedAnnual report
「In terms of profit, although each segment was affected by higher raw material and energy prices, operating profit was ¥4,659 million, up ¥367 million, or 8.6% year on year, due to the recovery in sales in the food-related business and product specification reviews, among other factors.」
It was disclosed that rising raw material and energy prices actually affected profit in each segment. Meanwhile, consolidated operating profit increased 8.6% year on year due to the recovery in sales in the food-related business and product specification reviews. - FY2023-Q2MaterialisedAnnual report
「In terms of profit, although each segment was affected by higher raw material and energy prices, operating profit was ¥3,376 million, up ¥183 million, or 5.7% year on year, due to the recovery in sales in the food-related business and product specification reviews, among other factors.」
It was disclosed that rising raw material and energy prices actually affected profit in each segment. Meanwhile, consolidated operating profit increased 5.7% due to the recovery in sales in the food-related business and product specification reviews. - FY2023-Q1MaterialisedAnnual report
「In terms of profit, although each segment was affected by higher raw material and energy prices, operating profit was ¥1,694 million, up ¥338 million, or 25.0% year on year, due to the recovery in sales in the food-related business and product specification reviews, among other factors.」
It was disclosed that rising raw material and energy prices actually affected profit in each segment. Meanwhile, consolidated operating profit increased 25.0% due to the recovery in sales and product specification reviews. - FY2022WorsenedAnnual report
「In the food industry, companies are expected to continue facing a challenging operating environment amid the need to respond to changes in consumer demand based on new lifestyles during the COVID-19 pandemic and factors including surging raw material prices.」
The previous risk of rising raw material prices was described as surging prices and identified, alongside changes in demand during the COVID-19 pandemic, as a factor contributing to the challenging operating environment. - FY2022-Q2RestatedAnnual report
「In the food industry, companies continued to face a challenging operating environment as they were required to respond to changes in consumer demand based on new lifestyles during the COVID-19 pandemic, while some raw material prices also rose.」
In addition to changes in demand amid the COVID-19 pandemic, rising prices for some raw materials were cited as a factor contributing to the challenging operating environment in the food industry. - FY2021RestatedAnnual report
「The group's results may be affected by increases in manufacturing costs resulting from higher raw material prices and personnel expenses, among other factors.」
The risk of higher manufacturing costs due to rising raw material prices and labor costs continues to be disclosed. - FY2020RestatedAnnual report
「However, the Group's results may be affected by higher costs associated with further quality improvements and stronger food labelling and traceability, lower selling prices, and higher manufacturing costs resulting from increases in raw material prices and personnel expenses.」
The disclosure reiterates the risk of higher manufacturing costs due to rising raw material prices and personnel expenses, together with costs associated with quality and traceability measures, among others. - FY2020-Q3RestatedAnnual report
「On the profit side, despite the impact of higher personnel expenses, operating profit was ¥2,962 million, up ¥1,301 million, or 78.3%, year on year, due in part to a review of product specifications in the food-related business.」
While higher personnel expenses continue to be identified as a cost burden on profit, operating profit has increased due in part to a review of product specifications and other measures. - FY2020-Q2MaterialisedAnnual report
「On the profit side, despite the impact of higher personnel expenses, operating profit was ¥1,974 million, up ¥279 million, or 16.5%, year on year, due in part to a review of product specifications in the food-related business.」
While higher personnel expenses continue to appear as a cost burden on profit, consolidated operating profit rose 16.5% due in part to a review of product specifications and other measures. - FY2020-Q1MaterialisedAnnual report
「On the profit side, although a review of product specifications in the food-related business contributed to results, operating profit was ¥1,115 million, down ¥0 million, or 0.1%, year on year, due in part to the impact of higher personnel expenses.」
Higher personnel expenses appear in the performance discussion for the first quarter of the 56th fiscal year as a factor constraining operating profit. - FY2019WorsenedAnnual report
「Operating profit was ¥1,526 million, down ¥2,205 million, or 59.1%, from the previous fiscal year, due in part to the impact of higher personnel expenses, logistics costs and energy prices.」
In addition to the previously cited increases in raw material prices and personnel expenses, higher logistics costs and energy prices emerged as full-year factors squeezing profit, and operating profit fell 59.1%. - FY2019-Q3WorsenedAnnual report
「On the profit side, operating profit was ¥1,661 million, down ¥2,278 million, or 57.8%, year on year, due in part to the impact of higher personnel expenses, logistics costs and energy prices.」
In addition to the previously cited increases in raw material prices and personnel expenses, higher logistics costs and energy prices were explicitly identified as factors squeezing profit, and operating profit fell 57.8% year on year. - FY2019-Q1MaterialisedAnnual report
「Operating profit was ¥1,116 million, down ¥486 million, or 30.3%, ordinary profit was ¥1,120 million, down ¥490 million, or 30.5%, and profit attributable to owners of the parent was ¥716 million, down ¥366 million, or 33.8%, due mainly to the impact of higher labor costs and other factors.」
The disclosure states that higher labour costs contributed to declines of 30.3% in operating profit, 30.5% in ordinary profit and 33.8% in quarterly net income attributable to owners of the parent in the first quarter of the 55th fiscal year. - FY2018MaterialisedAnnual report
「On the profit side, operating profit was ¥3,731 million, down ¥367 million, or 9.0%, from the previous fiscal year, and ordinary profit was ¥4,023 million, down ¥281 million, or 6.5%, due to the impact of higher material and labour costs.」
The disclosure states that higher material and labour costs resulted in full-year declines of 9.0% in operating profit and 6.5% in ordinary profit. - FY2018-Q3MaterialisedAnnual report
「On the other hand, operating profit was ¥3,432 million, up ¥110 million, or 3.3%, year on year, due in part to the impact of higher raw material prices.」
Higher raw material prices appear in the actual results discussion as a factor constraining profit in the food-related business. The disclosure states that operating profit rose only 3.3% year on year despite the increase in revenue. - FY2017First statedAnnual report
「The group's results may be affected by increases in manufacturing costs resulting from higher raw material prices and personnel expenses, among other factors.」
The disclosure states that rising raw material prices and labour costs could affect results through higher manufacturing costs.