Deterioration in Profit Margins Due to Soaring Raw Material Prices
First written in FY2016. 10 of 20 entries say "Restated". Latest entry: 2026-10-14.
Horiifoodservice moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 18 of 28 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「However, raw-material prices and labor-related costs continue to rise as prices increase, and the situation remains one that warrants close monitoring.」
Raw material prices continue to rise as prices increase, and the environment remains one that could squeeze costs and margins even as demand for eating out recovers. - 2026-04-14RestatedFinancial Results Presentation
「To secure profits without compromising quality, we will respond proactively through product development capabilities and cost management.」
The policy of responding to risks including raw-material, energy, and logistics costs through product-development capabilities and cost management was reaffirmed. - FY2026-H1RestatedAnnual report
「Although the food-service industry remains on a recovery path, prices, including those of raw materials, continue to rise, as do labor-related costs caused by labor shortages.」
The Company reaffirmed its recognition that demand for eating out continues to recover while prices, including those of raw materials, and labor-related costs continue to rise. - FY2025-H1RestatedAnnual report
「Although the food-service industry remains on a recovery path, it continues to face a situation that warrants close monitoring, as prices, including those of raw materials, continue to rise and labor-related costs caused by labor shortages continue to increase.」
While demand for eating out continues to recover, prices, including those of raw materials, and labor-related costs continue to rise, reaffirming an environment that could squeeze margins. - FY2024RestatedAnnual report
「If commodity prices rise sharply, the Company may need to pass the increase on to selling prices, and a decline in customer visits could affect its business performance. There may also be situations in which it is difficult to pass increases in raw material prices on to selling prices due to sales strategy requirements or efforts to prevent a decline in price competitiveness, which could lead to margin deterioration.」
The risks of higher raw material prices, difficulty passing on price increases, declining customer numbers, and margin deterioration continue to be cited. - FY2024-Q3RestatedAnnual report
「Although the food-service industry has entered a recovery phase following the reclassification of COVID-19 to Category 5 and continues to move toward normalization, it remains in a situation that warrants close monitoring. Prices, including those of raw materials, continue to rise, as do labor costs due to labor shortages.」
Prices, including those of raw materials, continue to rise, and the external environment surrounding costs and margins remains challenging even as operating performance recovers. - FY2024-Q2WorsenedAnnual report
「Although the food-service industry has entered a recovery phase following the reclassification of COVID-19 to Category 5, and continues to move toward normalization, it remains in a situation that warrants close monitoring due to soaring raw-material prices, rising energy costs and higher labor costs caused by labor shortages.」
In addition to sharply higher raw material prices, rising energy costs were explicitly cited, indicating that the challenging external cost environment that could squeeze margins is continuing. - FY2024-Q1WorsenedAnnual report
「During the cumulative three-month period under review, Japan's economy was moving toward normalization of social and economic activity as COVID-19 was reclassified to Category 5, while the outlook remained uncertain amid sharply higher energy and raw material prices caused by soaring crude oil prices against the backdrop of unstable international conditions, together with substantial fluctuations in foreign exchange rates.」
In addition to sharply higher raw material prices and energy costs, the disclosure cites substantial fluctuations in foreign exchange rates, indicating heightened external environmental risks surrounding procurement costs. - FY2023WorsenedAnnual report
「The food service industry is also moving toward recovery as vaccination progresses, but in response to sharply higher raw material prices, many companies have raised selling prices and taken other measures. Energy costs have also increased, and some food ingredients have become difficult to procure, leaving conditions unstable.」
In addition to sharply higher raw material prices, the disclosure cites rising energy costs and the emergence of food ingredients that are difficult to procure, indicating that the challenging external environment surrounding procurement and margins is continuing and worsening. - FY2023-Q3RestatedAnnual report
「The food service industry also showed signs of improvement as vaccination progressed, but in response to sharply higher raw material prices, many companies raised selling prices and took other measures. Some food ingredients have also become difficult to procure, and the situation remains unpredictable.」
The disclosure continues to cite procurement-related risks, including sharply higher raw material prices, increases in selling prices, and the emergence of food ingredients that are difficult to procure. - FY2023-Q2WorsenedAnnual report
「Meanwhile, as the prolonged situation between Russia and Ukraine continued to affect the global economy, domestic consumption remained challenging amid rising commodity prices, including sharply higher fuel prices, and the rapid depreciation of the yen.」
In addition to higher commodity and fuel prices, the disclosure cites the rapid depreciation of the yen, indicating a worsening external environment surrounding raw material and procurement costs. - FY2023-Q1WorsenedAnnual report
「In addition, the ongoing impact of the prolonged situation between Russia and Ukraine on the global economy has led to continued increases in commodity prices, including sharply higher fuel prices, while domestic consumption remains challenging. Some food ingredients have also become difficult to procure, and the situation remains unpredictable.」
In addition to continued increases in commodity and fuel prices, the disclosure cites the emergence of food ingredients that are difficult to procure, indicating heightened risks related to raw material prices and procurement conditions. - FY2022WorsenedAnnual report
「In addition, as economic uncertainty increased due to the situation between Russia and Ukraine, sharply higher crude oil and commodity prices affected personal consumption, and domestic consumption remained challenging.」
In connection with raw material price risk, the disclosure newly cites higher crude oil and commodity prices against the backdrop of the situation between Russia and Ukraine, together with the impact on personal consumption. - FY2022-Q3WorsenedAnnual report
「During the cumulative nine-month period under review, Japan's economy remained challenging, as domestic consumption continued to be affected by the spread of COVID-19, as well as sharply higher crude oil prices and commodity prices.」
The disclosure states that sharply higher crude oil and commodity prices are affecting personal consumption, further highlighting the challenging external environment surrounding price increases. - FY2019RestatedAnnual report
「There may be situations in which it is difficult to pass increases in raw material prices on to selling prices due to sales strategy requirements or efforts to prevent a decline in price competitiveness, which could lead to margin deterioration.」
The risk of margin deterioration due to an inability to pass higher raw material prices on to selling prices remains. - FY2017WorsenedAnnual report
「There may be situations in which it is difficult to pass increases in raw material prices on to selling prices due to sales strategy requirements or efforts to prevent a decline in price competitiveness, which could lead to margin deterioration.」
The difficulty of passing higher raw material prices on to selling prices and the possibility of margin deterioration were explicitly identified. - FY2016First statedAnnual report
「If commodity prices rise sharply, the Company may need to pass the increase on to selling prices, and a decline in customer visits could affect its business performance.」
The risks identified include an inability to pass higher raw material prices on to selling prices and deteriorating profitability due to a decline in customer numbers following price increases.