Higher import procurement costs due to yen depreciation
First written in FY2016. 9 of 22 entries say "Worsened", first in FY2022-Q3. Latest entry: FY2026.
Bruno moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 33 of 59 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The Group uses forward exchange contracts to stabilize procurement costs and address sharp currency fluctuations in advance. It also seeks to mitigate the impact of inflation through ongoing cost-reduction initiatives and appropriate reviews of selling prices.」
The company explicitly describes a combination of forward exchange contracts, cost reductions and selling-price reviews as measures to address the risks of yen depreciation and inflation. - 2026-08-14RestatedRevision of earnings forecasts
「The outlook remains uncertain due to the continued depreciation of the yen and rising prices, as well as increasing geopolitical risks.」
The Company reconfirmed uncertainty in the external environment, including yen depreciation and rising prices. - FY2025RestatedAnnual report
「Overseas, geopolitical risks and the impact of the weaker yen increased uncertainty relating to logistics and costs.」
The weaker yen continues to be identified as an uncertainty factor for logistics and costs. - FY2025-H1RestatedAnnual report
「However, inflation has continued due to higher raw material and fuel prices resulting from the situation in Ukraine and the impact of import inflation caused by the weaker yen, requiring continued monitoring.」
Higher raw material and fuel prices and import inflation caused by the weaker yen continue to be identified as concerns in the external environment. - FY2024WorsenedAnnual report
「Meanwhile, the outlook remains uncertain, as the yen rapidly depreciated to the ¥160 range to the US dollar in June 2024.」
The yen depreciated to the ¥160 range to the US dollar, and exchange-rate risk continued to put pressure on profit through higher costs. - FY2024-Q3WorsenedAnnual report
「Meanwhile, the outlook remains uncertain, amid soaring raw material and energy costs resulting from the prolonged situations in Ukraine and the Middle East and the yen's depreciation beyond ¥150 to the US dollar.」
Soaring raw material and energy costs and the yen's depreciation beyond ¥150 to the US dollar continue to be concerns in the external environment, putting pressure on profit through a higher cost ratio. - FY2024-Q2WorsenedAnnual report
「Profit was affected by the weaker yen and the rise in the cost ratio caused by higher raw material prices, resulting in operating profit of ¥34 million, compared with operating profit of ¥253 million in the same period of the previous year.」
The rise in the cost ratio caused by the weaker yen and higher raw material prices continued to weigh on profit, with operating profit declining from ¥253 million to ¥34 million compared with the same period of the previous year. - FY2024-Q1WorsenedAnnual report
「Profit was affected by the weaker yen and the rise in the cost ratio caused by higher crude oil and raw material prices, resulting in an operating loss of ¥182 million, compared with operating profit of ¥17 million in the same period of the previous year.」
The rise in the cost ratio caused by the weaker yen and higher crude oil and raw material prices is explicitly identified as a factor behind the operating loss, and the impact of exchange rates and higher procurement costs continues. - FY2023WorsenedAnnual report
「Meanwhile, the outlook for the domestic and overseas economies remains uncertain, owing to persistently high procurement prices and the rapid depreciation of the yen.」
Procurement prices remain high and the yen continues to depreciate rapidly, with the resulting rise in the cost ratio continuing to put downward pressure on operating profit. - FY2023-Q3RestatedAnnual report
「Meanwhile, the outlook for the domestic and overseas economies remains uncertain, owing to persistently high procurement prices and the rapid depreciation of the yen.」
Persistently high procurement prices and the rapid depreciation of the yen continue to be identified as concerns in the economic environment. - FY2023-Q2WorsenedAnnual report
「Operating profit was ¥253 million (¥475 million in the same period of the previous year), due to the impact of a higher cost of goods ratio resulting from the record depreciation of the yen and higher crude oil and raw material prices, as well as revisions to the accounting treatment for the business combination in which シカタ was the acquired company.」
The situation in which the rise in the cost ratio caused by the record depreciation of the yen and higher crude oil and raw material prices pushes down operating profit continues. - FY2023-Q1WorsenedAnnual report
「Operating profit was ¥17 million (¥150 million in the same period of the previous year), due to the impact of a higher cost of goods ratio resulting from the record depreciation of the yen and higher crude oil and raw material prices, as well as revisions to the accounting treatment for the business combination in which シカタ was the acquired company.」
The rise in the cost ratio caused by the record depreciation of the yen and higher raw material prices pushed down operating profit. Foreign-exchange losses also increased from ¥8 million to ¥16 million compared with the same period of the previous year. - FY2022WorsenedAnnual report
「During the consolidated fiscal year, Japan's economy was difficult for manufacturers, which were significantly affected in their procurement prices by the rapid depreciation of the yen and soaring crude oil and raw material prices.」
The rapid depreciation of the yen and soaring crude oil and raw material prices affected procurement prices and the cost ratio, actually emerging as factors behind the decline in operating profit. - FY2022-Q3WorsenedAnnual report
「During the cumulative period of the third quarter of the fiscal year ending June 2022 (1 July 2021 to 31 March 2022), Japan's economy remained unpredictable, despite the gradual increase in foot traffic and revitalisation of personal consumption following the lifting of priority preventive measures against the spread of COVID-19 in all designated areas, amid soaring crude oil prices, the ongoing depreciation of the yen and the prolonged situation in Ukraine.」
The depreciation of the yen continued as a concern in the external environment, and foreign-exchange losses increased from ¥1 million to ¥2 million compared with the same period of the previous year. - FY2022-Q2MaterialisedAnnual report
「In addition, ordinary profit was ¥339 million, compared with ¥569 million in the same period of the previous year, due partly to expenses related to shareholder benefits.」
Foreign-exchange losses of ¥9 million were recorded in the quarter, meaning that exchange-rate movements actually affected ordinary profit. - FY2022-Q1MaterialisedAnnual report
「In addition, ordinary profit was ¥134 million, compared with ¥247 million in the same period of the previous year, partly because foreign-exchange losses were recorded as a result of the weaker yen.」
The Company explains that foreign-exchange losses caused by the weaker yen were actually recorded and affected ordinary profit. - FY2020MitigatedAnnual report
「To address sudden exchange-rate movements in advance, the Group is working to stabilise procurement costs by using forward exchange contracts.」
The Company continues to stabilise procurement costs using forward exchange contracts in response to the risk of higher import procurement costs caused by a weaker yen. - FY2019-Q1MaterialisedAnnual report
「In addition, due partly to the impact of valuation losses on derivatives caused by the stronger yen, ordinary profit was ¥14 million and net profit attributable to owners of the parent was ¥15 million.」
Regarding exchange-rate movements, the Company explains that valuation losses on derivatives and other items caused by the stronger yen actually affected ordinary profit this time. - FY2018MitigatedAnnual report
「Our hedging policy is limited to transactions that reduce exchange-rate risk in foreign-currency-denominated import and export contracts.」
Regarding the risk of higher import costs caused by a weaker yen, the Company explicitly states a policy of hedging with forward exchange contracts and currency options and not using them for speculative purposes. - FY2017ReframedAnnual report
「If the yen weakens against other currencies, exchange-rate fluctuations may affect our business results because procurement costs will rise.」
In addition to the previous policy of using the benefits of a stronger yen, this filing explicitly identifies higher procurement costs caused by a weaker yen as a risk and describes both sides of exchange-rate fluctuations. - FY2017-Q1Shift toward benefiting from a stronger yenAnnual report
「Going forward, the company will actively expand its store network not only through the travel shop “MILESTO,” but also through the interior goods shop “Idea Seventh Sense” and the organic shop “Terracuore.” It will also strategically invest in advertising and strengthen e-commerce sales to expand sales through channels with higher gross margins, while working to improve gross margins by benefiting from the stronger yen.」
While the previous fiscal year described a higher cost ratio caused by the weaker yen, this filing states a policy of using the benefits of a stronger yen to improve the gross profit margin. - FY2016First statedAnnual report
「In the fiscal year ended June 2016, the weaker yen raised the cost ratio compared with the previous fiscal year, affecting profit.」
In addition to being identified as a risk, the weaker yen is described as having actually affected the cost ratio and profit during the period.