Stable Supply Risk from Outsourced Production
First written in FY2019. 5 of 7 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2024-Q2.
Pharma Foods International moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2020: 4 of 20 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- FY2024-Q2MaterialisedAnnual report
「Although initial orders for “New Z” were strong, production delays caused by difficulty procuring raw materials postponed the timing of advertising, limiting its contribution to earnings during the cumulative second quarter.」
Production delays caused by difficulty procuring raw materials actually occurred, leading to delayed advertising and a limited contribution to earnings. - FY2023-Q1MaterialisedAnnual report
「The DRcula® (Cula) series, a new product for the current fiscal year, saw orders increase following intensified online advertising. The combined number of subscription customers for the whitening gel and mouthwash reached 62,596. In response to strong demand, the company is currently accepting advance orders and shipping products in sequence.」
Strong orders for the new product have created a supply constraint requiring advance sales and phased shipments. - FY2022-Q2MitigatedAnnual report
「The initial production run sold out as orders remained strong, but shipments resumed in December 2021, and sales for the cumulative second quarter were ¥992 million.」
WMOA eyelash serum experienced a supply constraint after the initial production run sold out, but shipments resumed in December 2021. - FY2022-Q1MaterialisedAnnual report
「The initial production run sold out as orders remained strong, and sales for the cumulative first quarter were ¥74 million. The company is urgently building a system to increase production, with shipments scheduled to resume from late December 2021.」
The initial production run of WMOA eyelash serum sold out, creating a supply constraint that required increased production capacity and a planned resumption of shipments to meet rising demand. - FY2021-Q2MaterialisedAnnual report
「Despite imposing order restrictions on “Newmo® hair-growth lotion” for approximately 1 month, the group as a whole achieved a substantial 216.1% year-on-year increase in sales.」
Orders for Newmo hair-growth lotion were restricted for approximately 1 month, indicating an actual supply constraint caused by a sharp increase in demand. - FY2020-Q2MaterialisedAnnual report
「Despite being forced to wait approximately 3 months for shipment of “Newmo® hair-growth lotion” because orders surged beyond expectations, the group achieved a substantial 24.4% year-on-year increase in sales.」
Production could not keep pace with the surge in Newmo orders, resulting in an approximately 3-month wait for shipment and an actual supply constraint. - FY2019First statedAnnual report
「There is no guarantee that an alternative supplier can be secured promptly if production at an existing contract manufacturer is discontinued for any reason.」
While continuing to outsource production to external partner factories, the group identifies production delays or stoppages caused by the discontinuation of production by a contractor or difficulty securing an alternative supplier as risks.