Impact of Yen Appreciation on USD-Denominated Transactions and Profit Margins
First written in FY2017-Q1. 12 of 20 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2026.
Macnica Holdings moved to the "Worse" side of this theme in 2019, 3 years after the typical company in this theme (2016).
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The U.S. dollar-denominated share of domestic purchases was 82.0% in the fiscal year ending March 2026, while the U.S. dollar-denominated share of sales, including overseas sales, was 43.9%. Given these high foreign-currency-denominated ratios, exchange-rate movements may have a material impact on the operating results of the Group.」
The U.S. dollar-denominated share of purchases rose from 76.5% in the previous fiscal year to 82.0%, while the share of sales rose from 41.8% to 43.9%. Foreign exchange losses also totaled ¥3,808 million in the current fiscal year, indicating an increasing impact from exchange-rate movements. - FY2026-H1WorsenedAnnual report
「In the first quarter of the consolidated fiscal year, the gross profit margin declined due to the impact of exchange-rate movements in Japan and Taiwan, while selling, general and administrative expenses increased due in part to Navya Mobility SAS and other companies newly consolidated from the fourth quarter of the previous fiscal year. As a result, operating profit was ¥17,506 million, down 21.8% year on year, while ordinary profit was ¥14,728 million, down 30.2% year on year, due to foreign exchange losses resulting from exchange-rate movements.」
Exchange-rate movements in Japan and Taiwan were reflected in a lower gross profit margin and foreign exchange losses of ¥2,542 million, with the impact increasing from the ¥873 million foreign exchange loss recorded in the same period of the previous year. - FY2025WorsenedAnnual report
「The U.S. dollar-denominated share of domestic purchases was 76.5% in the fiscal year ended March 2025, while the U.S. dollar-denominated share of sales, including overseas sales, was 41.8%. Given these high foreign-currency-denominated ratios, exchange-rate movements may have a material impact on the operating results of the Group.」
Although the foreign-currency-denominated ratios have declined from prior years, the possibility of a material impact from exchange-rate movements continues to be disclosed, and foreign exchange losses of ¥1,168 million were recorded in the current fiscal year. - FY2025-H1WorsenedAnnual report
「Foreign exchange losses 99 873」
Foreign exchange losses increased from ¥99 million in the same period of the previous year to ¥873 million, increasing the impact of exchange-rate movements on profit. - FY2024-Q3WorsenedAnnual report
「In the domestic business, the sharp trend toward yen depreciation during the period increased the cost-of-sales ratio, particularly for new projects.」
Rapid yen depreciation continues to affect domestic business profitability, primarily through higher cost-of-sales ratios for new projects. - FY2024-Q2MitigatedAnnual report
「Foreign exchange loss 2,098 99」
The foreign exchange loss declined from ¥2,098 million in the same period of the previous year to ¥99 million, easing the impact of exchange-rate fluctuations on profit compared with the previous period. - FY2023-Q3WorsenedAnnual report
「Ordinary profit was ¥40,829 million, up 66.2% year on year, despite the recording of a foreign exchange loss of ¥2,446 million」
The impact of sharp exchange-rate fluctuations materialized in the results as a foreign exchange loss of ¥2,446 million, demonstrating that the effect of exchange-rate fluctuations on profit continued from the previous quarter. - FY2023-Q2WorsenedAnnual report
「In the domestic business involving purchases denominated in US dollars and sales denominated in Japanese yen, the sharp depreciation of the yen increased the cost of sales and negatively affected the gross profit margin.」
The results showed that, in addition to yen appreciation, sharp yen depreciation can also affect profit through higher cost of sales and a lower gross profit margin in the business involving dollar-denominated purchases and yen-denominated sales. A foreign exchange loss of ¥2,098 million was also recorded on a consolidated basis. - FY2023-Q1WorsenedAnnual report
「Operating profit was ¥1,498 million, down 21.7% year on year, as the sharp depreciation of the yen increased the cost of sales.」
The sharp depreciation of the yen, in the opposite direction from the previously identified risk of yen appreciation, put downward pressure on operating profit in the network business through higher cost of sales, demonstrating the realized impact of exchange-rate fluctuations. - FY2019RestatedAnnual report
「The average internal exchange rate was ¥111.19 to the US dollar in the previous consolidated fiscal year, compared with ¥110.67 in the current consolidated fiscal year, representing an appreciation of the yen,」
The yen appreciated year on year, and a foreign exchange loss of ¥1,011 million was recorded in the current period, so the impact of yen appreciation on profit has continued. - FY2019-Q3WorsenedAnnual report
「The average internal exchange rate was ¥111.68 to the US dollar in the cumulative third quarter of the previous year, compared with ¥110.80 in the cumulative third quarter under review, indicating a trend toward yen appreciation. Meanwhile, since the start of the current period, the average internal exchange rate has followed a trend toward yen depreciation, at ¥108.10 to the US dollar in the first quarter, ¥110.87 in the second quarter and ¥113.43 in the third quarter.」
The average internal exchange rate for the cumulative period represented a year-on-year appreciation of the yen, and a foreign exchange loss of ¥1,024 million was recorded, mainly on the settlement of foreign-currency-denominated receivables and payables. Meanwhile, the quarterly figures indicated a trend toward yen depreciation. - FY2019-Q2WorsenedAnnual report
「The average internal exchange rate was ¥111.20 to the US dollar in the cumulative second quarter of the previous year, compared with ¥109.48 in the cumulative second quarter under review, indicating a trend toward yen appreciation.」
The yen appreciated from ¥111.20 in the same period of the previous year to ¥109.48, and a foreign exchange loss of ¥840 million was also recorded, mainly on the settlement of foreign-currency-denominated receivables and payables. - FY2019-Q1WorsenedAnnual report
「The average internal exchange rate was ¥111.48 to the US dollar in the cumulative first quarter of the previous year, compared with ¥108.10 in the cumulative first quarter under review, indicating a trend toward yen appreciation.」
The yen appreciated from ¥111.48 in the same period of the previous year to ¥108.10, and a foreign exchange loss of ¥491 million was also recorded, mainly on the settlement of foreign-currency-denominated receivables and payables. - FY2018MitigatedAnnual report
「The average internal exchange rate was ¥108.93 to the US dollar in the previous consolidated fiscal year, compared with ¥111.19 in the current consolidated fiscal year, representing a depreciation of the yen. Since the start of the current period, the average internal exchange rate was ¥111.48 to the US dollar in the first quarter, ¥110.92 in the second quarter, ¥112.65 in the third quarter and ¥109.72 in the fourth quarter. Although the yen appreciated toward the end of the period, the rate was generally stable with a trend toward yen depreciation.」
The yen depreciated year on year, and exchange rates were generally stable during the year, easing the pressure on profit margins and profit from yen appreciation in the previous period. - FY2018-Q3MitigatedAnnual report
「The average internal exchange rate was ¥107.14 to the US dollar in the cumulative third quarter of the previous year, compared with ¥111.68 in the cumulative third quarter under review, representing a depreciation of the yen. Since the start of the current period, the average internal exchange rate has remained relatively stable, at ¥111.48 to the US dollar in the first quarter, ¥110.92 in the second quarter and ¥112.65 in the third quarter.」
The yen depreciated year on year, and the quarterly average internal exchange rate also remained relatively stable during the current period, so the pressure on the gross profit margin and profit from yen appreciation has continued to ease. - FY2018-Q2MitigatedAnnual report
「The average internal exchange rate was ¥107.65 to the US dollar in the cumulative second quarter of the previous year, compared with ¥111.20 in the cumulative second quarter under review, representing a depreciation of the yen. Since the start of the current period, the average internal exchange rate has remained relatively stable, at ¥111.48 to the US dollar in the first quarter and ¥110.92 in the second quarter.」
The yen depreciated year on year, and the average internal exchange rate also remained relatively stable during the current period, easing the pressure on profit margins from the yen appreciation in the previous period. - FY2018-Q1MitigatedAnnual report
「The average internal exchange rate was ¥111.79 to the US dollar in the cumulative first quarter of the previous year and ¥111.48 in the cumulative first quarter under review, with no significant difference. The rate has also remained relatively stable since the start of the current period.」
Because exchange-rate levels showed no significant difference from the same period of the previous year and remained stable during the current period, the impact of yen appreciation in the previous period on the gross profit margin and profit has eased. - FY2017-Q3SoftenedAnnual report
「Meanwhile, the average internal exchange rate during each quarter of the consolidated fiscal year was ¥111.79 to the US dollar in the first quarter and ¥103.50 in the second quarter, representing an appreciation of the yen, before the yen depreciated to ¥106.13 in the third quarter. The exchange rate fluctuated sharply, particularly in December, when it reached ¥112.42 to the US dollar.」
Although the cumulative period still reflects the impact of yen appreciation, the yen depreciated again in the third quarter, partially easing the risk from yen appreciation while highlighting the magnitude of exchange-rate fluctuations. - FY2017-Q2WorsenedAnnual report
「The average internal exchange rate was ¥121.76 to the US dollar in the cumulative second quarter of the previous year, compared with ¥107.65 in the cumulative second quarter under review, representing a substantial appreciation of the yen.」
The yen appreciated further, putting downward pressure on operating profit through reduced foreign-currency-denominated sales and purchase discounts and a lower gross profit margin. - FY2017-Q1First statedAnnual report
「The average internal exchange rate was ¥120.97 to the US dollar in the same quarter of the previous year, compared with ¥111.79 in the cumulative first quarter under review, representing a substantial appreciation of the yen.」
The appreciation of the yen was explained as having reduced US dollar-denominated sales and purchase discounts and lowered the gross profit margin, thereby putting downward pressure on operating profit.