Higher Purchase Costs Driven by Climate Change, Natural Disasters and Yen Depreciation
First written in FY2016. 23 of 28 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2026.
Beauty Kadan Holdings moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 45 of 64 companies on the "Worse" side.
26 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In the floriculture industry, demand showed signs of recovery, particularly in weddings and funerals, but supply-side constraints continued, including a decline in domestic producers, higher logistics costs, and persistently high material prices. In addition, higher purchase prices for imported flowers resulting from exchange-rate fluctuations put pressure on profitability across the industry.」
The previously identified risks from weather, exchange rates, and higher purchase prices materialized as higher prices for imported flowers and persistently high logistics and material costs, putting pressure on industry profitability. - FY2026-H1MaterialisedAnnual report
「In addition, exchange-rate movements kept imported floral-material prices high, and higher procurement costs squeezed earnings across the industry.」
The previously identified risks of exchange-rate movements and higher procurement prices materialized as persistently high prices for imported floral materials and higher procurement costs, squeezing industry earnings. - FY2025MaterialisedAnnual report
「During the fiscal year, market prices fluctuated considerably due to weather and supply-and-demand conditions, and market conditions remained unstable throughout the period. Rising prices in the first half contributed to earnings, while the market also softened at times in the second half.」
Weather- and supply-and-demand-driven market fluctuations actually occurred, with higher prices in the first half and market softening in the second half affecting earnings in the fresh-flower wholesale business. - FY2025-H1MaterialisedAnnual report
「The decline in incoming volumes caused by rising temperatures in the first half of the fiscal year continued into the second half, driving up selling prices. In addition, the volume of imported products handled increased in the second half. As a result, revenue was ¥1,427.196 million, up 10.9% year on year.」
Lower incoming volumes due to rising temperatures and higher selling prices actually occurred and affected revenue in the fresh-flower wholesale business. - FY2024MaterialisedAnnual report
「During the fiscal year, higher sales volumes, yen depreciation, and supply shortages resulting from poor growth caused by high summer temperatures drove up selling prices. As a result, revenue was ¥2,239.843 million, up 8.5% year on year.」
The previously identified risk of fluctuations in procurement prices due to yen depreciation, high temperatures, poor growth and supply shortages materialized, affecting higher selling prices and increased revenue in the fresh-flower wholesale business. - FY2024-Q3MaterialisedAnnual report
「Under these circumstances, the business continued pursuing synergies between the fresh flower wholesale business (domestic distribution) and the floral altar business and implementing initiatives to fundamentally reform its logistics system. It also passed on higher costs through sales prices, reviewed the products handled and improved selling, general and administrative expense efficiency. Although profit increased in the middle of the period, the business was affected by higher costs in the latter half. As a result, operating profit was ¥35.883 million, down 4.2% year on year.」
Higher costs actually reduced operating profit in the fresh-flower wholesale business and contributed to a 4.2% year-on-year decline in profit. - FY2024-Q2MaterialisedAnnual report
「During the period, higher sales volumes, yen depreciation, and supply shortages resulting from poor growth caused by high summer temperatures drove up selling prices. As a result, revenue was ¥1,287.455 million, up 14.7% year on year.」
Yen depreciation, poor growth due to high temperatures, and supply shortages actually contributed to higher selling prices and increased revenue in the fresh-flower wholesale business. - FY2024-Q1MaterialisedAnnual report
「During the period, higher sales volumes, yen depreciation, and supply shortages resulting from poor growth caused by high summer temperatures drove up selling prices. As a result, revenue was ¥625.737 million, up 17.3% year on year.」
The previously disclosed risks of yen depreciation, climate and weather conditions, supply shortages due to poor growth, and higher procurement prices actually emerged as factors behind higher selling prices and increased revenue during the quarter. - FY2023MaterialisedAnnual report
「Against this backdrop, the business implemented strategies under its medium-term management plan, as well as new services and new product sales in response to the trend toward smaller funerals. As a result, sales increased as described above, but operating profit was affected by higher raw material costs and other factors and came to ¥321.987 million, down 0.2% year on year.」
Higher raw-material costs and other factors actually contributed to a 0.2% year-on-year decline in operating profit in the fresh-flower funeral-altar business. - FY2023-Q3MaterialisedAnnual report
「As a result, although revenue increased as described above, operating profit was ¥228.882 million, down 14.2% year on year, due to the impact of higher raw-material costs.」
Higher raw-material costs actually contributed to a 14.2% year-on-year decline in operating profit in the fresh-flower funeral-altar business. - FY2023-Q2MaterialisedAnnual report
「During the period, the recovery trend following the COVID-19 pandemic, lower supply volumes due to poor weather conditions in the first half of the fiscal year, and yen depreciation drove up selling prices. As a result, revenue was ¥1,122.545 million, up 17.8% year on year.」
Poor weather-related declines in supply volumes and yen depreciation actually contributed to higher selling prices. The company also states that higher raw-material costs reduced operating profit in the fresh-flower funeral-altar business. - FY2023-Q1MaterialisedAnnual report
「Against this backdrop, the business implemented strategies under its medium-term management plan, new services such as @Funeral, designed to address the trend toward smaller-scale funerals, and sales of new products. However, operating profit was ¥36.768 million, down 22.9% year on year, due to higher costs resulting from rapid yen depreciation.」
The previously disclosed risk of yen depreciation and higher procurement costs materialized as higher costs driven by rapid yen depreciation, reducing operating profit in the fresh-flower funeral-altar business by 22.9% year on year. - FY2022MaterialisedAnnual report
「Against this backdrop, the business continued to pursue synergies between the fresh-flower wholesale business in domestic distribution and the fresh-flower funeral-altar business, while implementing measures to minimize the impact of the COVID-19 pandemic. However, operating profit was ¥15.951 million, down 47.8% year on year, due to the impact of yen depreciation and higher import costs.」
The previously identified risk of higher procurement costs materialized as yen depreciation and higher import costs, reducing operating profit in the fresh-flower wholesale business by 47.8% year on year. - FY2022-Q3MaterialisedAnnual report
「Under these circumstances, the business continued pursuing synergies between the fresh flower wholesale business (domestic distribution) and the floral altar business and implementing initiatives to fundamentally reform its logistics system, while also implementing measures to minimise the impact of the COVID-19 pandemic. However, due to the impact of higher cost ratios, operating profit was ¥13.591 million, down 52.4% year on year.」
Higher cost ratios actually contributed to a 52.4% year-on-year decline in operating profit in the fresh-flower wholesale business. - FY2022-Q2MaterialisedAnnual report
「Against this backdrop, the business continued to pursue synergies between the fresh-flower wholesale business (domestic distribution) and the fresh-flower altar business while implementing initiatives to fundamentally reform its logistics system. It also implemented measures to minimize the impact of COVID-19. However, due to the impact of higher cost ratios, operating profit was ¥8.354 million, down 63.7% year on year.」
Higher cost ratios actually contributed to lower operating profit in the fresh-flower wholesale business. - FY2021MaterialisedAnnual report
「Against this backdrop, the business launched new services and began selling new products in response to the trend toward smaller funerals, and these initiatives gradually began to pay off. However, higher costs resulting from the COVID-19 pandemic affected operating profit, which was ¥243.283 million, down 2.9% year on year.」
In addition to the previously identified risk of higher costs due to climate and market conditions, higher costs resulting from the COVID-19 pandemic actually contributed to a 2.9% year-on-year decline in operating profit in the fresh-flower funeral-altar business. - FY2020RestatedAnnual report
「As an agricultural product, fresh flowers are subject to production and harvest conditions influenced by climate and weather. If abnormal weather, typhoons or other natural disasters cause production and harvest volumes to fall sharply and market prices to surge, the cost of fresh-flower funeral altars may rise significantly.」
The company continues to disclose the potential impact on procurement costs and profit margins of climate and natural disasters, market prices, yen depreciation, and the difficulty of passing higher costs through to selling prices. - FY2020-Q3MaterialisedAnnual report
「Losses from disasters - ¥9.177 million」
The quarterly consolidated income statement recorded ¥9.177 million in losses from disasters as an extraordinary loss, continuing to indicate the occurrence of risks related to natural disasters. - FY2020-Q2MaterialisedAnnual report
「Losses from disasters - ¥8.559 million」
The quarterly consolidated income statement recorded ¥8.559 million in losses from disasters as an extraordinary loss, indicating that the previously identified risk related to natural disasters materialized as an accounting loss. The type of disaster and its specific business impact are not identified in the text. - FY2019RestatedAnnual report
「As an agricultural product, fresh flowers are subject to production and harvest conditions influenced by climate and weather. If abnormal weather, typhoons or other natural disasters cause production and harvest volumes to fall sharply and market prices to surge, profits from the fresh-flower wholesale business may increase, while the cost of fresh-flower funeral altars may rise significantly.」
The company continues to disclose the potential impact on procurement costs and profit margins of climate and natural disasters, market prices, yen depreciation, and the difficulty of passing higher costs through to selling prices. - FY2019-Q3MaterialisedAnnual report
「In the first half of the second quarter, operating profit was ¥370.591 million, down 16.4% year on year, due in part to higher procurement costs resulting from poor weather conditions in Japan and higher costs associated with opening the new locations described above.」
The previously disclosed risk of higher procurement costs due to poor weather conditions materialized and affected operating profit in the fresh-flower funeral-altar business. - FY2019-Q2MaterialisedAnnual report
「On the other hand, during the first half of the period, operating profit was ¥214.532 million, down 18.3% year on year, due in part to higher procurement costs resulting from poor weather conditions in Japan and higher costs associated with opening the new locations described above.」
The previously identified risk of higher procurement costs due to poor weather conditions also materialized during the period and affected operating profit in the fresh-flower funeral-altar business. - FY2019-Q1MaterialisedAnnual report
「On the other hand, during the period, operating profit was ¥98.664 million, down 17.5% year on year, due in part to higher procurement costs resulting from poor weather conditions in Japan and higher costs associated with opening the new locations described above.」
The previously disclosed risk of higher procurement costs due to poor weather conditions materialized and affected operating profit in the fresh-flower funeral-altar business. - FY2018RestatedAnnual report
「As an agricultural product, fresh flowers are subject to production and harvest conditions influenced by climate and weather. If abnormal weather, typhoons or other natural disasters cause production and harvest volumes to fall sharply and market prices to surge, profits from the fresh-flower wholesale business may increase, while the cost of fresh-flower funeral altars may rise significantly. In addition, if the yen continues to depreciate against foreign currencies, procurement prices in yen will increase. Depending on market competition at the time, however, the company may be unable to adequately reflect this increase in its selling prices, potentially reducing the Group's profit margins.」
The company continues to disclose the potential impact on procurement costs and profit margins of climate and natural disasters, market prices, yen depreciation, and the difficulty of passing higher costs through to selling prices. - FY2017RestatedAnnual report
「As an agricultural product, fresh flowers are subject to production and harvest conditions influenced by climate and weather. If abnormal weather, typhoons or other natural disasters cause production and harvest volumes to fall sharply and market prices to surge, profits from the fresh-flower wholesale business may increase, while the cost of fresh-flower funeral altars may rise significantly. In addition, if the yen continues to depreciate against foreign currencies, procurement prices in yen will increase.」
The company continues to disclose the potential impact of climate and weather conditions, natural disasters, market prices and yen depreciation on procurement costs and profit margins. - FY2016First statedAnnual report
「As an agricultural product, fresh flowers are subject to production and harvest conditions influenced by climate and weather. If abnormal weather, typhoons or other natural disasters cause production and harvest volumes to fall sharply and market prices to surge, profits from the fresh-flower wholesale business may increase, while the cost of fresh-flower funeral altars may rise significantly. In addition, if the yen continues to depreciate against foreign currencies, procurement prices in yen will increase.」
The company indicates that the agricultural characteristics of fresh flowers, natural disasters, market prices and yen depreciation may affect procurement costs and profit margins.