Higher procurement costs due to the booming used-car market
First written in FY2023-Q1. 9 of 14 entries say "Materialised", first in FY2023-Q3. Latest entry: FY2026.
WILLPLUS Holdings moved to the "Worse" side of this theme in 2025.
1 other company's latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「As a result, overseas revenue for the current consolidated fiscal year was ¥10,208 million, down 21.9% from the previous period.」
Overseas revenue fell 21.9% from the previous period due to Malaysia reaching its import quota, weakening demand and poor sales of major models, among other factors. The shortfall was partly offset by expanding business-to-business sales, but the decline in profitability in the export business continued. - FY2026-H1MaterialisedAnnual report
「In addition to the country's import quota for 2025 reaching its limit in early August, the market entered a period of weakening demand. Overseas revenue for the current interim consolidated accounting period was ¥2,971 million, down 45.9% year on year, substantially below the previous corresponding period.」
In the used-car export market, import quotas were reached earlier than expected and demand weakened, resulting in a 45.9% year-on-year decline in overseas revenue. Market volatility risk materialised in the results. - FY2025ReframedAnnual report
「In addition to a sharp increase from around February 2025 in the supply to the used-car market of the models we mainly export, the Malaysian currency, which had remained on a depreciation trend against the yen, shifted to an appreciation trend, weakening demand from local importers. As a result, overseas revenue fell below expectations」
The focus of used-car market risk shifted from higher procurement costs resulting from the previous market boom to softer market conditions and lower demand caused by a sharp increase in supply, as well as lower margins caused by the reversal in foreign-exchange trends. - FY2024MitigatedAnnual report
「The gross margin on used cars improved as used-car market prices stabilised, and the overall gross margin rose 0.1 point from the previous period to 19.6%.」
As used-car market prices stabilised, the impact of higher cost ratios associated with the buoyant and volatile used-car market was partly alleviated, and the gross margin improved to 19.6%. - FY2024-Q2MaterialisedAnnual report
「The cost ratio rose due to higher costs associated with responding to fluctuations in the used-vehicle market and increased manufacturing costs, including mechanics' labour costs. As a result, gross margin declined 1.2 percentage points to 19.0%, but gross profit increased 4.0% year on year to ¥4,341 million as revenue rose.」
Higher cost ratios resulting from fluctuations in the used-car market and increased manufacturing costs, including mechanics' personnel expenses, lowered the gross margin by 1.2 percentage points, affecting actual profit. - FY2024-Q1MaterialisedAnnual report
「Gross profit declined from the previous corresponding period because the used-car cost ratio rose as the surge in the used-car market caused by the shortage of new cars in the previous corresponding period normalised during the current period, and because new-car sales increased, raising costs associated with pre-delivery servicing, among other factors. As a result, the gross margin fell by 2.4 points to 18.5%.」
The rise in the used-car cost ratio resulting from the normalisation of the used-car market surge raised the cost-of-sales ratio and lowered the gross margin by 2.4 percentage points, affecting actual profit. - FY2023MaterialisedAnnual report
「Gross margin declined 1.7 percentage points from the previous fiscal year to 19.5%, but gross profit increased 2.1% to ¥8,622 million as revenue rose.」
Cost of sales rose due to higher new-car selling prices and used-car valuation losses associated with the normalisation of selling prices in the used-car market, lowering the gross margin by 1.7 percentage points. - FY2023-Q3MaterialisedAnnual report
「Gross profit declined 1.2% year on year to ¥6,320 million as the cost of sales increased due to higher new-vehicle selling prices and the normalisation of used-vehicle selling prices. Gross margin also declined 1.4 percentage points to 20.3%.」
Higher cost of sales resulting from the normalisation of used-car market selling prices reduced gross profit by 1.2% year on year and lowered the gross margin by 1.4 percentage points, affecting actual profit. - FY2023-Q1First statedAnnual report
「Gross profit declined 0.9% to ¥2,048 million due to the impact of lower new-vehicle revenue and higher purchase costs resulting from the buoyant used-vehicle market, among other factors.」
The rise in procurement costs resulting from the buoyant used-car market was identified for the first time as a factor behind the decline in gross profit, and higher costs affected actual profit.