Profitability risk in the food business from rising procurement costs for imported ingredients, yen appreciation and price competition
First written in FY2017-Q1. 21 of 32 entries say "Worsened", first in FY2017. Latest entry: 2026-07-31.
Shinyei Kaisha moved to the "Worse" side of this theme in 2019, 1 year after the typical company in this theme (2018).
The whole theme swung hardest in 2025: 11 of 19 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- 2026-07-31WorsenedEarnings
「物流コストや人件費の高騰のほか、中東情勢の悪化に伴う副資材の供給懸念や円安基調の定着による輸入食材の価格高止まりなど、これらの物価上昇要因が及ぼす消費動向への影響が懸念される状況でありました。」
食品関連で物流費・人件費の高騰に加え、副資材の供給懸念と輸入食材価格の高止まりが示された。 - FY2026RestatedAnnual report
「Although food demand continued to recover across a wide range of business categories, including food service, and with the expansion of inbound tourism, concerns arose over the impact of rising prices on consumer trends because cost pressures, including higher logistics costs and labor costs to address labor shortages, persisted.」
Food demand continued to recover, while cost pressures such as higher logistics and labor costs and concerns over the impact of higher prices on consumer trends persisted. Food-related profits increased during the fiscal year due to price adjustments. - FY2025-H1WorsenedAnnual report
「Cost pressures continued, including soaring factory overhead and other costs in overseas sourcing countries and higher logistics costs and labor costs in Japan to address labor shortages.」
Soaring factory overhead in overseas sourcing countries and higher domestic logistics and labor costs continued. Higher procurement costs due to the weaker yen and the limited impact of price adjustments also compounded the pressure, resulting in lower sales and profits related to food products. - FY2024WorsenedAnnual report
「As cost pressures continued, including soaring factory overhead and other costs in overseas sourcing countries, the weaker yen, and higher logistics and labor costs in Japan to address labor shortages, the market saw lower usage volumes due to downsizing and other measures to reduce costs.」
Soaring factory overhead in overseas sourcing countries, the weaker yen, higher domestic logistics and labor costs, labor shortages in the food service industry, and lower usage volumes due to downsizing are weighing on profitability and demand conditions in the food business. - FY2024-Q3WorsenedAnnual report
「Although economic activity in Japan was moving toward normalization and food demand showed signs of recovery across a wide range of business categories, including as inbound tourism recovered, labor shortages in the food service industry became a constraint on the recovery. In addition to soaring factory overhead and other costs in overseas sourcing countries and the weaker yen, cost pressures continued in Japan, including higher logistics costs and labor costs to address labor shortages. As a result, the market continued to see lower usage volumes due to downsizing and other measures to reduce costs.」
Food demand and inbound tourism showed signs of recovery, while labor shortages in the food service industry were newly identified as a constraint on the recovery. Soaring factory overhead in overseas sourcing countries, the weaker yen, higher logistics and labor costs, and lower usage volumes due to downsizing also continued. - FY2024-Q2WorsenedAnnual report
「In addition to soaring factory overhead and other costs in overseas sourcing countries and the weaker yen, cost pressures continued in Japan, including higher logistics costs and labor costs to address labor shortages. As a result, the market continued to see lower usage volumes due to downsizing and other measures to reduce costs.」
In the food business, soaring factory overhead in overseas sourcing countries and the weaker yen, together with continued increases in domestic logistics and labor costs, were reported. Usage volumes also declined due to downsizing and other measures aimed at reducing costs. - FY2024-Q1WorsenedAnnual report
「In addition to soaring factory overhead and other costs in overseas sourcing countries and the weaker yen, cost pressures continued in Japan, including higher electricity, logistics and labor costs.」
In the food business, soaring factory overhead in overseas sourcing countries and the weaker yen, together with higher domestic electricity, logistics and labor costs, were identified as cost pressures. Although food demand is recovering, procurement and sales cost conditions remain challenging. - FY2023-Q3RestatedAnnual report
「Although economic activity in Japan was gradually moving toward normalization and food demand showed signs of recovery across a wide range of business categories, procurement costs rose substantially due to soaring factory overhead and raw material costs in sourcing countries, including China, higher import costs resulting from global logistics disruptions, and the rapid depreciation of the yen. Procurement conditions remained challenging because of supply constraints caused by the prolonged situation in Ukraine, lockdowns in China and other factors.」
Food demand showed signs of recovery, but higher factory overhead and raw material costs in sourcing countries, logistics costs and the weaker yen, together with supply constraints caused by lockdowns in China and other factors, continued to weigh on profitability and procurement conditions in the food business. - FY2023-Q2WorsenedAnnual report
「Although economic activity in Japan was gradually moving toward normalization and food demand showed signs of recovery across a wide range of business categories, procurement costs rose substantially due to soaring factory overhead and raw material costs in sourcing countries, including China, higher import costs resulting from global logistics disruptions, and the rapid depreciation of the yen. Procurement conditions remained challenging because of supply constraints caused by the prolonged situation in Ukraine, lockdowns in China and other factors.」
Food demand showed signs of recovery, but higher costs due to factory overhead and raw material costs in sourcing countries, logistics costs and the weaker yen were compounded by supply constraints related to the situation in Ukraine and lockdowns in China. - FY2023-Q1WorsenedAnnual report
「Although economic activity in Japan was gradually moving toward normalization and food demand showed signs of recovery across a wide range of business categories, procurement costs rose substantially due to soaring factory overhead and raw material costs in sourcing countries, including China, higher import costs resulting from global logistics disruptions, and the rapid depreciation of the yen. Procurement conditions remained challenging because of supply constraints caused by the prolonged situation in Ukraine, lockdowns in China and other factors.」
Food demand showed signs of recovery, but higher procurement costs due to factory overhead and raw material costs in sourcing countries, logistics costs and the weaker yen were compounded by supply constraints related to the situation in Ukraine and lockdowns in China. - FY2022WorsenedAnnual report
「The operating environment for imported food ingredients remained challenging. Procurement costs continued to trend upward due to adverse weather in sourcing countries, including China, higher factory overhead and raw material costs, higher overseas logistics costs resulting from global logistics disruptions, and the ongoing depreciation of the yen.」
In addition to the existing pressures from raw material costs, logistics costs and price competition, adverse weather in sourcing countries, global logistics disruptions and the weaker yen combined to significantly squeeze profits related to food products. - FY2022-Q3WorsenedAnnual report
「The operating environment for imported food ingredients remained challenging. Procurement costs continued to trend upward due to the impact of adverse weather in sourcing countries, including China, higher factory overhead and raw material costs, and upward pressure on overseas logistics costs resulting from global logistics disruptions. In Japan, the impact of the spread of COVID-19 prolonged the period of sluggish demand.」
The weaker yen, adverse weather in sourcing countries, higher factory overhead and raw material costs, and higher logistics costs caused by global logistics disruptions have combined to sustain risks to procurement costs in the food business. Sluggish demand has also persisted. - FY2022-Q2WorsenedAnnual report
「The operating environment for imported food ingredients remained challenging. Procurement costs continued to trend upward due to the weaker yen, higher factory overhead and raw material costs in sourcing countries, including China, and upward pressure on overseas logistics costs resulting from global logistics disruptions. In Japan, the impact of the spread of COVID-19 persisted, and although demand was recovering, the market contracted amid sluggish demand across a wide range of sectors, including institutional catering and food service, while price competition intensified further.」
The weaker yen, higher factory overhead and raw material costs in sourcing countries, and higher logistics costs caused by global logistics disruptions have continued, alongside sluggish commercial demand and intensifying price competition. - FY2022-Q1WorsenedAnnual report
「The operating environment for imported food ingredients remained challenging. In addition to the trend toward a weaker yen, procurement costs increased due to higher factory overhead and raw material costs in sourcing countries, including China, and upward pressure on overseas logistics costs resulting from global logistics disruptions. Meanwhile, although demand was recovering, it remained sluggish across a wide range of sectors, including institutional catering and food service, due to the impact of COVID-19. As the market contracted, price competition intensified further.」
The weaker yen, higher factory overhead and raw material costs in sourcing countries, and higher logistics costs caused by global logistics disruptions have continued, alongside sluggish commercial demand and intensifying price competition. - FY2021WorsenedAnnual report
「The environment surrounding imported food ingredients was difficult. While demand for meals consumed at home increased as COVID-19 spread, demand declined across a wide range of areas, including school meals, institutional catering and foodservice. As the market contracted, products remained unsold and price competition intensified further.」
In addition to the previously identified rise in procurement-country costs, logistics expenses and price competition, a sharp decline in commercial demand, unsold inventory and further intensification of price competition emerged as profitability risks for the food business. - FY2021-Q2WorsenedAnnual report
「The environment surrounding imported food ingredients was difficult. While demand for meals consumed at home increased as COVID-19 spread, demand declined across a wide range of areas, including school meals, institutional catering and foodservice. As the market contracted, products remained unsold and price competition intensified further.」
Although demand for meals consumed at home increased, declining demand for school meals, institutional catering and foodservice, unsold inventory and further intensification of price competition were identified, worsening the food business sales and profitability environment. - FY2021-Q1WorsenedAnnual report
「The environment surrounding imported food ingredients was difficult. While demand for meals consumed at home increased as COVID-19 spread, demand declined across a wide range of areas, including school meals, institutional catering and foodservice. As the market contracted, products remained unsold and price competition intensified further.」
Although demand for meals consumed at home increased, declining demand for school meals, institutional catering and foodservice, unsold inventory and intensifying price competition worsened sales and profitability risks in the food business. - FY2020WorsenedAnnual report
「Since the spread of COVID-19, demand for school meals, the foodservice industry and inbound consumption has fallen sharply.」
In addition to rising factory overhead and raw material costs in procurement countries, higher domestic logistics costs and price competition, the sharp decline in demand for school meals, foodservice and inbound consumption became a profitability and sales risk for the food business. - FY2020-Q3WorsenedAnnual report
「The environment surrounding imported food ingredients became more difficult as intense market price competition continued, factory overhead and raw material costs rose in procurement countries, including China, and upward pressure on domestic logistics costs also increased.」
The document states that, in addition to price competition and rising factory overhead and raw material costs in procurement countries, upward pressure on domestic logistics costs increased further. - FY2020-Q1WorsenedAnnual report
「The environment surrounding imported food ingredients became more difficult as intense market price competition continued, factory overhead and raw material costs rose in procurement countries, including China, and upward pressure on domestic logistics costs increased further.」
The document states that, in addition to price competition and rising factory overhead and raw material costs in procurement countries, upward pressure on domestic logistics costs increased further. - FY2019-Q3RestatedAnnual report
「The environment surrounding imported food ingredients was difficult, with intensifying market price competition, rising factory overhead and raw material costs in procurement countries, including China, and domestic logistics costs trending upward.」
Rising procurement-country costs for imported food ingredients, domestic price competition and higher logistics costs continue to weigh on the food business profitability environment. - FY2019-Q2RestatedAnnual report
「The environment surrounding imported food ingredients was difficult, with intensifying market price competition, rising factory overhead and raw material costs in procurement countries, including China, and domestic logistics costs trending upward.」
Rising procurement-country costs for imported food ingredients, domestic price competition and higher logistics costs continue. - FY2019-Q1RestatedAnnual report
「The environment surrounding imported food ingredients was difficult, with intensifying market price competition, rising factory overhead and raw material costs in procurement countries, including China, and domestic logistics costs trending upward.」
Rising procurement-country costs for imported food ingredients, domestic price competition and higher logistics costs continue. - FY2018-Q3RestatedAnnual report
「The environment surrounding imported food ingredients was difficult. The yen depreciated compared with the previous period, raising product costs, while market selling prices fell and price competition intensified. In addition, factory overhead and raw material costs rose in procurement countries, including China, and domestic logistics costs were trending upward.」
Higher product costs due to yen depreciation, lower selling prices and intensifying price competition, rising procurement-country costs, and higher domestic logistics expenses continued to weigh on the food business profitability environment. - FY2018-Q2WorsenedAnnual report
「The environment surrounding imported food ingredients was difficult. The yen depreciated from the beginning of the period, raising product costs, while market selling prices fell and price competition intensified. In addition, factory overhead and raw material costs rose in procurement countries, including China, and domestic logistics costs were trending upward.」
Higher product costs due to yen depreciation, lower selling prices and intensifying price competition, rising procurement-country costs, and higher domestic logistics expenses coexisted, worsening the food business profitability environment. - FY2018-Q1RestatedAnnual report
「The environment surrounding imported food ingredients was difficult. Yen appreciation from the beginning of the period somewhat reduced costs, but market selling prices also fell and price competition intensified. In addition, factory overhead and raw material costs rose in procurement countries, including China, while domestic logistics costs were also trending upward.」
Although yen appreciation reduced costs, lower selling prices, price competition, higher procurement-country costs and rising domestic logistics expenses coexisted, and profitability risks in the food business continued. - FY2017WorsenedAnnual report
「The environment surrounding imported food ingredients remained difficult. Factory overhead and raw material costs continued to rise in procurement countries, including China, and procurement costs trended upward after the yen depreciated in the second half of the fiscal year. Meanwhile, domestic price competition intensified against a backdrop of exchange-rate fluctuations during the period.」
In addition to higher costs and raw material costs in procurement countries, the document describes higher procurement costs due to yen depreciation in the second half of the fiscal year and intensifying domestic price competition, indicating a deterioration in the food business profitability environment. - FY2017-Q3RestatedAnnual report
「The environment surrounding imported food ingredients remained difficult, as factory overhead and raw material costs continued to rise in procurement countries, including China, while price competition intensified domestically amid a trend toward yen appreciation.」
Rising factory overhead and raw material costs in procurement countries, the trend toward yen appreciation and intensifying domestic price competition continue. - FY2017-Q2RestatedAnnual report
「The environment surrounding imported food ingredients remained difficult, as factory overhead and raw material costs continued to rise in procurement countries, including China, while price competition intensified domestically amid a trend toward yen appreciation.」
Rising factory overhead and raw material costs in procurement countries, the trend toward yen appreciation and intensifying domestic price competition continue. - FY2017-Q1First statedAnnual report
「The environment surrounding imported food ingredients was difficult, as factory overhead and raw material costs rose in procurement countries, including China, while price competition intensified amid a trend toward yen appreciation.」
Rising factory overhead and raw material costs in procurement countries, yen appreciation and intensifying price competition were identified as risks to the profitability of the imported food business.