Foreign exchange volatility risk and hedging through forward contracts
First written in FY2020. 4 of 9 entries say "Restated". Latest entry: FY2026-H1.
Kitabo moved to the "Worse" side of this theme in 2022, 3 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 28 of 51 companies on the "Worse" side.
15 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「In addition, exchange rates continued to fluctuate sharply, and destabilizing factors such as higher import costs remain evident.」
The Company explained that sharp exchange-rate fluctuations and higher import costs continued. In addition, a foreign-exchange gain of ¥2.143 million was recorded in non-operating income and expenses for the current interim period. - FY2025-H1MaterialisedAnnual report
「In the Company's non-consolidated results, net sales increased by approximately 20% and the operating loss improved compared with the immediately preceding interim accounting period. However, ordinary loss was at the same level as in the immediately preceding interim accounting period because sharp exchange-rate fluctuations resulted in foreign-exchange losses.」
Sharp exchange-rate fluctuations resulted in actual foreign-exchange losses, affecting ordinary loss in the non-consolidated results. Foreign-exchange losses of ¥4.080 million were recorded in the interim consolidated statement of income. - FY2024RestatedAnnual report
「The Group sells products and purchases raw materials in foreign currencies and enters into forward exchange contracts to hedge the risks arising from exchange-rate fluctuations. However, it is impossible to eliminate the effects entirely, and they may affect the Group's performance.」
The explanation that foreign-exchange risks associated with foreign-currency transactions cannot be eliminated entirely through forward exchange contracts has continued. - FY2024-Q3Monitoring exchange-rate movements toward yen appreciationAnnual report
「From the fourth quarter onward, it will be necessary to pursue measures addressing storage and transportation costs in light of local demand, while also monitoring exchange-rate movements that have been trending toward yen appreciation.」
In addition to the previous warnings concerning yen depreciation and sharp fluctuations, the Company now states that it is monitoring exchange-rate movements toward yen appreciation from the fourth quarter onward. - FY2024-Q2RestatedAnnual report
「In the Japanese economy, companies continue to face various operating challenges, including a prolonged weak yen market due to the Japan-U.S. interest rate differential, sharp rises in energy and transportation prices associated with surging resource prices, higher prices for various materials, nationwide labor shortages, and rising labor costs.」
The instability of the foreign-exchange environment, including the prolonged depreciation of the yen, has coincided with higher resource, energy and transportation prices and rising labor costs. - FY2023WorsenedAnnual report
「The effects of higher energy costs stemming from the conflict in Ukraine and semiconductor shortages for automobiles persisted, while exchange rates also fluctuated sharply, and the situation continued to require close attention.」
Although the Company hedges through forward exchange contracts, uncertainty in the external environment, including sharp exchange-rate fluctuations, continues. - FY2023-Q2WorsenedAnnual report
「During the first six months of the current consolidated fiscal year, the global economy remained a situation requiring close attention, as the impact of the Ukraine conflict persisted and the yen depreciated rapidly amid continued uncertainty over the impact of the COVID-19 pandemic.」
The yen depreciated rapidly in the business environment related to foreign-currency transactions, worsening the external environment surrounding foreign-exchange risk. - FY2021RestatedAnnual report
「The Group sells products and purchases raw materials in foreign currencies and enters into forward exchange contracts to hedge the risks arising from exchange-rate fluctuations. However, it is impossible to eliminate the effects entirely, and they may affect the Group's performance.」
The explanation that foreign-exchange risks associated with foreign-currency transactions cannot be eliminated entirely through hedging with forward exchange contracts has continued. - FY2020First statedAnnual report
「The Company sells products and purchases raw materials in foreign currencies and enters into forward exchange contracts to hedge the risks arising from exchange-rate fluctuations. However, it is impossible to eliminate the effects entirely, and they may affect the Company's performance.」
The Company described for the first time in specific terms the foreign-exchange risk associated with foreign-currency-denominated sales and raw-material purchases and the use of forward exchange contracts for hedging.