Risk of rising procurement prices for lumber, building materials, etc.
First written in FY2017. 3 of 6 entries say "Materialised", first in FY2022-Q3. Latest entry: FY2023.
Open House Group 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 2018: 7 of 9 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2023MaterialisedAnnual report
「In the detached-house-related business, although sales were affected by higher land and material prices compared with the previous consolidated fiscal year, revenue increased by double digits against the backdrop of firm demand for detached houses in central urban areas.」
The impact of higher land and material prices was reflected in the profit margins of the detached-house-related business. While revenue increased, the gross profit margin declined. - FY2023-Q3RestatedAnnual report
「In the detached-house-related business, although sales were affected by higher land and material prices compared with the cumulative third quarter of the previous consolidated fiscal year, sales remained firm due to strong demand for detached houses in central urban areas. As a result, revenue was ¥432,005 million, up 14.7% year on year, and operating profit was ¥49,080 million, up 1.0%.」
Although the impact of higher land and material prices has continued, sales remained firm due to demand for detached houses in central urban areas. - FY2023-Q1MaterialisedAnnual report
「In the cumulative first quarter of the previous fiscal year, profit margins were high because more customers sought workspaces and other features at home as the COVID-19 pandemic spread, and selling prices rose in response to stronger demand for housing. In the cumulative first quarter of the current fiscal year, land and material prices rose against the backdrop of this stronger demand, and profit margins normalised. These fluctuations in financial results have already been incorporated into the plan.」
The disclosure states that higher land and material prices actually led to the normalisation of profit margins, showing that the impact of the risk of higher procurement prices has continued to appear in financial results. - FY2022-Q3MaterialisedAnnual report
「This is because demand for homes with workspaces and other features has remained firm under the new lifestyle that spread in response to the COVID-19 pandemic, and sales have remained steady, while profit margins declined compared with the cumulative third quarter of the previous fiscal year because costs rose from the second quarter of the consolidated fiscal year due in part to the impact of surging material prices.」
The disclosure states that costs rose due to surging material prices, causing profit margins in the detached-house-related business to decline. The risk of higher procurement prices for timber, building materials and other items was reflected in actual financial results. - FY2020-Q3WorsenedAnnual report
「The cost of these purchases accounts for a large portion of development costs. However, procurement prices may rise because of external factors beyond the Group's control, including supply shortages of properties in the Tokyo metropolitan area and other urban areas. In addition, labour costs for construction work may rise against the backdrop of labour shortages in the construction industry.」
In addition to the risk of higher timber and building-material prices, the disclosure explicitly identified the risk of higher land procurement prices in urban areas and higher labour costs for construction work. - FY2017First statedAnnual report
「If these raw materials cannot be procured on the expected terms because of price increases resulting from foreign-exchange fluctuations and country risk in the countries where the raw materials are produced, this may affect the Group's financial results.」
The Group disclosed the risk that timber, building materials and other items may become more expensive or more difficult to procure because of foreign-exchange fluctuations and country risk in producing countries.