Increase in Cost of Sales Due to Soaring Raw Material and Labor Costs
First written in FY2016. 4 of 14 entries say "Materialised", first in FY2023-Q2. Latest entry: 2026-10-13.
Phil Company moved to the "Worse" side of this theme in 2026, 5 years after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 28 of 41 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026-H1MaterialisedAnnual report
「Gross profit and gross profit margin both fell below the same period of the previous year, affected by the increase in construction costs resulting from the aforementioned rise in building prices.」
The increase in building prices actually pushed up construction costs, with gross profit down 21.9% year on year and gross profit margin declining from 23.9% to 22.7%. - FY2025WorsenedAnnual report
「The business environment remains challenging, with no room for complacency, including the need to appropriately manage construction costs amid persistently high labour and material prices and address the shortage of workers that has become apparent as the declining birthrate and ageing population progress.」
The company states that the impact of higher raw material and labour costs continues to emerge as persistently high material prices and challenges in managing construction costs. - FY2023MitigatedAnnual report
「Gross profit: ¥1,436,662 thousand (up 39.7% year on year)」
Despite continued high material prices, gross profit increased 39.7% year on year, and gross profit margin improved from 23.4% to 24.1%. - FY2023-Q3MitigatedAnnual report
「Gross profit and gross profit margin both increased from the same period of the previous year through differentiation from other companies based on the company’s strength in planning capabilities and a review of cost efficiency, despite the impact of recent increases in material prices.」
The company explains that, despite continued increases in material prices, it achieved improvements in gross profit and gross profit margin through differentiation based on planning capabilities and a review of cost efficiency. - FY2023-Q2MaterialisedAnnual report
「Although the business has been affected by recent increases in material prices, gross profit improved from the same period of the previous year as a result of differentiation from other companies through the company’s planning capabilities and a review of cost efficiency.」
The company states that higher material prices have affected actual business conditions and costs. At the same time, gross profit margin improved from the same period of the previous year through differentiation based on planning capabilities and a review of cost efficiency. - FY2022-Q3WorsenedAnnual report
「The economic outlook remains uncertain, amid higher global material and energy prices and rising prices resulting from the sharp depreciation of the yen.」
In addition to higher material and energy prices, the company cites rising prices resulting from the sharp depreciation of the yen, indicating an expansion in risk factors related to raw material and cost conditions. - FY2022-Q2WorsenedAnnual report
「At the same time, the outlook for the economy remains uncertain due to persistently high global material and energy prices and the worsening situation in Ukraine, among other factors.」
The company identifies higher raw material prices as part of the current economic environment that could contribute to the risk of fluctuations in cost of sales. The body of the text does not assert any specific impact of higher material prices on the company’s performance. - FY2019RestatedAnnual report
「Because the Group carries out construction work for the aerial-store business フィル・パーク, the impact of higher prices for key raw materials, labour and other costs is smaller than at other companies because construction periods are short. However, cost of sales may fluctuate because order prices vary according to project size and because of project-specific characteristics, including building planning, ground conditions and compliance with various laws and regulations.」
While stating that the impact of higher raw material and labour costs is relatively limited, the company continues to identify the risk of fluctuations in cost of sales arising from project size and other project-specific factors. - FY2018RestatedAnnual report
「Because the Group carries out construction work for the aerial-store business フィル・パーク, the impact of higher prices for key raw materials, labour and other costs is smaller than at other companies because construction periods are short. However, cost of sales may fluctuate because order prices vary according to project size and because of project-specific characteristics, including building planning, ground conditions and compliance with various laws and regulations.」
While stating that the impact of higher raw material and labour costs is relatively limited, the company continues to identify the risk of fluctuations in cost of sales arising from project size, building planning, ground conditions and compliance with laws and regulations. - FY2017ReframedAnnual report
「Because the Group carries out construction work for the aerial-store business フィル・パーク, the impact of higher prices for key raw materials, labour and other costs is smaller than at other companies because construction periods are short. However, cost of sales may fluctuate because order prices vary according to project size and because of project-specific characteristics, including building planning, ground conditions and compliance with various laws and regulations.」
The scope of the risk has expanded from a focus on higher raw material and labour costs to the risk of fluctuations in cost of sales arising from project-specific factors, including project size, building planning, ground conditions and compliance with laws and regulations. - FY2016First statedAnnual report
「Because the Group carries out construction work for the aerial-store business フィル・パーク, the impact is smaller than at other companies because construction periods are short. However, cost of sales may increase because of higher prices for key raw materials, labour and other costs.」
While stating that the impact is limited because of short construction periods, the company identifies higher raw material and labour costs as factors driving higher costs.