Foreign Exchange Risk from Imported Purchases and Inadequate Cost Pass-Through
First written in FY2016-Q3. 7 of 19 entries say "Materialised", first in FY2016-Q3. Latest entry: 2026-10-14.
Axas Holdings moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 18 of 28 companies on the "Worse" side.
10 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Product prices remained high because of the prolonged yen depreciation, and consumers were seen holding back on purchases. It was difficult to sufficiently pass the increase in purchase prices caused by the yen depreciation through to selling prices.」
The prolonged yen depreciation kept product prices high, and consumers continued to hold back on purchases while increases in purchase prices could not be sufficiently passed through to selling prices. - FY2025WorsenedAnnual report
「It was difficult to fully offset higher purchase prices through increased sales. Although segment sales increased, this was insufficient to offset the decline in segment profit.」
The increase in purchase prices caused by the prolonged yen depreciation could not be fully offset by higher sales, resulting in an inability to increase profit in the wholesale business. - FY2024MaterialisedAnnual report
「It was difficult to fully offset higher purchase prices through selling prices, and weak consumption of luxury goods for the night market also had an impact. As a result, segment profit did not increase.」
Higher purchase prices due to the prolonged yen depreciation and insufficient pass-through of higher costs were reflected in lower profit in the wholesale business. - FY2024-Q2WorsenedAnnual report
「At the Rokko Mountain Distillery, sales grew substantially because sales increased at duty-free stores, which are at the forefront of inbound tourism consumption, and because the Company expanded its sales activities across various distribution markets. However, it was difficult to pass the full increase in purchase prices caused by the rapid depreciation of the yen through to selling prices, and gross profit in this segment did not increase.」
Continued increases in purchase prices due to rapid yen depreciation and insufficient pass-through to selling prices resulted in a situation where increased sales were still unable to raise gross profit in the wholesale business. - FY2024-Q1MaterialisedAnnual report
「In Japan, prices of essential goods such as gasoline, electricity and food have risen due to higher resource prices resulting from the Ukraine crisis and the effects of the prolonged yen depreciation, among other factors, increasing consumers' focus on protecting their household budgets.」
The prolonged yen depreciation and higher resource prices are actually being reflected in rising prices for essential goods and greater consumer focus on protecting household budgets. - FY2023MaterialisedAnnual report
「The Group's wholesale and e-commerce businesses import products from overseas. Their transaction currencies include the US dollar, euro and other currencies in addition to the yen. If the yen depreciates rapidly or remains weak over an extended period, actual purchase prices will rise, potentially causing fluctuations in the gross profit margin. We take measures to mitigate foreign exchange risk, including reviewing selling prices where appropriate, but there is no assurance that this risk can be fully passed through to prices, and the businesses remain exposed to general market risks arising from fluctuations in exchange rates and other factors.」
The Company explicitly identified as a business risk the possibility that rapid yen depreciation could affect the actual purchase prices of imported products and the pass-through of higher costs. - FY2023-Q1MaterialisedAnnual report
「In the wholesale business, product prices rose due to the rapid depreciation of the yen and soaring material costs, among other factors, and some high-priced products saw consumers holding back on purchases.」
The rise in product prices caused by the rapid depreciation of the yen and soaring material costs actually resulted in consumers holding back on purchases of some high-priced products. - FY2019-Q3MaterialisedAnnual report
「However, the business environment remained challenging because purchase prices continued to trend upward, market conditions made it difficult to pass all increases through to selling prices, growth in domestic consumption in the champagne category slowed, and price competition increased. As a result, sales and gross profit in this division did not increase.」
Continued increases in purchase prices and insufficient pass-through to selling prices were reflected in the inability to increase sales and gross profit. - FY2017RestatedAnnual report
「In the wholesale business, we take measures to mitigate foreign exchange risk, including raising selling prices where appropriate. However, there is no assurance that this foreign exchange risk can be fully passed through to prices, and the business remains exposed to general market risks arising from fluctuations in exchange rates and other factors.」
The measures of raising selling prices and the risk that foreign exchange fluctuations cannot be fully passed through to prices have been disclosed again. - FY2017-Q3RestatedAnnual report
「In the wholesale business, we take measures to mitigate foreign exchange risk, including raising selling prices where appropriate. However, there is no assurance that this foreign exchange risk can be fully passed through to prices, and the business remains exposed to general market risks arising from fluctuations in exchange rates and other factors.」
The measures of raising selling prices and the risk that foreign exchange fluctuations cannot be fully passed through to prices have been disclosed again. - FY2017-Q2RestatedAnnual report
「In the wholesale business, we take measures to mitigate foreign exchange risk, including raising selling prices where appropriate. However, there is no assurance that this foreign exchange risk can be fully passed through to prices, and the business remains exposed to general market risks arising from fluctuations in exchange rates and other factors.」
The Company continues to disclose the risk that, despite measures such as raising selling prices, foreign exchange fluctuations cannot be fully passed through to prices. - FY2017-Q1RestatedAnnual report
「In the wholesale business, we take measures to mitigate foreign exchange risk, including raising selling prices where appropriate. However, there is no assurance that this foreign exchange risk can be fully passed through to prices, and the business remains exposed to general market risks arising from fluctuations in exchange rates and other factors.」
The Company continues to disclose the risk that, despite measures such as raising selling prices, foreign exchange fluctuations cannot be fully passed through to prices. - FY2016RestatedAnnual report
「Purchase prices rose amid the yen's depreciation trend that continued from the previous year. Because it was difficult to pass the entire increase through to selling prices, among other factors, this put downward pressure on gross profit.」
It was disclosed that higher purchase prices due to yen depreciation and insufficient pass-through of higher costs also affected results for the year. - FY2016-Q3MaterialisedAnnual report
「The depreciation trend in the yen that continued from the beginning of the cumulative consolidated third quarter period raised purchase prices. Because it was difficult to pass all of the increase through to selling prices, gross profit was pushed down.」
The effects of foreign exchange fluctuations were actually disclosed during the quarter through higher purchase prices and lower gross profit resulting from yen depreciation.