Deterioration in the Operating Environment Due to Increases in Logistics, Procurement, Labor and Materials Costs
First written in FY2020-Q2. 10 of 18 entries say "Materialised", first in FY2020. Latest entry: FY2027-H1.
United Super Markets Holdings moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
28 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「Gross profit fell below plan owing to higher prices for materials and other items affected by petroleum products such as naphtha, stronger pricing and promotional measures in response to intensifying competition, and customer numbers and items purchased per customer falling below expectations.」
Gross profit fell below plan owing to higher material prices, pricing and promotional measures in response to competition, and customer numbers and items purchased per customer falling short of expectations. - FY2026MaterialisedAnnual report
「Selling, general and administrative expenses rose to 117.8% of the year-earlier level due to higher labor, utility, and logistics costs, outpacing the increase in gross profit.」
Higher labor, utility, and logistics costs emerged as an actual expense burden, with selling, general and administrative expenses reaching 117.8% of the year-earlier level. - FY2025MaterialisedAnnual report
「Selling, general and administrative expenses increased 16.2% from the previous fiscal year due to higher labor, utility, and logistics costs, as well as investment in a prepared-foods center.」
Higher labor, utility, and logistics costs, together with investment in a prepared-foods center, resulted in a 16.2% increase in selling, general and administrative expenses in actual performance. - FY2025-H1MaterialisedAnnual report
「Because improving working conditions and raising wages have become essential to secure labor, increases in labor and logistics costs have a significant impact on total selling, general and administrative expenses, making labor-saving measures and management efficiency improvements at a level different from the past an urgent priority.」
The impact of higher labor and logistics costs on total selling, general and administrative expenses was identified as substantial, making labor-saving measures and management efficiency improvements at a level different from the past an urgent priority. - FY2025-Q1MaterialisedAnnual report
「Selling, general and administrative expenses were held down through measures including reduced power consumption and increased investment in energy conservation, but labor costs rose and logistics costs increased due to the logistics-related “2024 problem.”」
Higher labor costs and logistics costs resulting from the 2024 logistics problem emerged as an actual burden on selling, general and administrative expenses. - FY2024-Q3MaterialisedAnnual report
「Against this backdrop, the group has been affected by higher logistics costs, material prices, utilities expenses and other costs, which have put pressure on profit,」
Increases in logistics costs, material prices, and utility costs were identified as an actual impact putting pressure on profit. - FY2024-Q2MaterialisedAnnual report
「Under these conditions, the group was affected by various cost increases, including logistics costs, material prices, and utility costs, which put pressure on profit,」
Increases in logistics costs, material prices, and utility costs were identified as an actual impact putting pressure on profit. - FY2024-Q1RestatedAnnual report
「The shift toward inflation, including higher energy costs and prices for products and services, continued, while consumer sentiment remained lackluster.」
Pressure on costs and the consumer environment from higher energy costs and product and service prices has continued. - FY2023-Q3WorsenedAnnual report
「On the cost side, although various power-saving measures were implemented in response to soaring electricity charges, they failed to absorb the substantial increase in unit costs, resulting in lower profit. As further increases in energy costs are foreseeable, deeper cost structure reform is an urgent priority.」
In addition to the previous increases in procurement and logistics costs, a substantial rise in electricity unit costs reduced profit, making it an urgent priority to respond to further increases in energy costs. - FY2023-Q2WorsenedAnnual report
「Under these conditions, while procurement prices for many products were being raised, the group continued efforts to contain selling prices through various measures and focused on increasing customer traffic, but was unable to secure the expected sales. Meanwhile, increases in various costs, including electricity charges, substantially exceeded initial estimates, making deeper cost structure reform an urgent priority.」
Increases in procurement prices, electricity charges, and other costs substantially exceeded initial estimates, while expected sales could not be secured, making cost structure reform an urgent priority. - FY2023-Q1WorsenedAnnual report
「Price increases for many products have continued to be announced, and utility costs such as electricity charges are also expected to rise further, making deeper cost structure reform an urgent priority.」
With price increases announced for many products and further increases in utility costs expected, responding to cost pressures was identified as an increasingly urgent priority. - FY2022WorsenedAnnual report
「Food prices continued to rise due to soaring crude oil and raw material prices, and changes in international conditions and foreign exchange rates were also expected to have an impact. As major changes in household spending were anticipated and consumer sentiment was expected to deteriorate further, the company determined that the business environment surrounding the group was becoming increasingly challenging.」
In addition to the previous increases in logistics and procurement costs, concerns about costs and the consumer environment broadened to include successive food price hikes caused by soaring crude oil and raw material prices, as well as the effects of international conditions and foreign exchange rates. - FY2022-Q3WorsenedAnnual report
「During the nine-month period of the current fiscal year, the business environment began to show signs of improvement as restrictions on nighttime dining and other activities were eased or lifted following a decline in COVID-19 cases, with performance beginning to recover, particularly in the restaurant industry. However, the economy remained uncertain as food prices were raised successively due to soaring crude oil prices and higher raw material prices.」
In addition to the existing risks of higher logistics, procurement, labor, and material costs, increases in crude oil and raw material prices and successive food price hikes were identified, broadening the scope of cost pressures. - FY2020MaterialisedAnnual report
「Although the company strengthened its pricing policy, it was affected by higher raw-material and logistics costs, which caused procurement prices to rise, and gross profit margin failed to exceed the previous period’s level.」
Soaring raw material and logistics costs actually affected performance through higher procurement prices and failure to achieve the targeted gross margin. - FY2020-Q3RestatedAnnual report
「While higher procurement prices, driven by soaring logistics costs and labor shortages, as well as higher labor and material costs, continued, the competitive environment became even more intense following the consumption tax increase, and the company recognized that it was being forced to change.」
Continued increases in logistics, procurement, labor, and material costs were noted, together with intensified competition following the consumption tax increase. - FY2020-Q2First statedAnnual report
「Supermarkets faced challenging operating conditions due to higher procurement prices against a backdrop of soaring logistics costs and labor shortages, increases in labor and material costs, and continued rain and low temperatures in July.」
Higher logistics, procurement, labor, and material costs were cited as factors contributing to the challenging operating environment for supermarkets.