Persistently Elevated Logistics Costs
First written in FY2019-Q3. 9 of 14 entries say "Worsened", first in FY2022-Q3. Latest entry: 2026-08-06.
Daio Paper 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 2026: 18 of 26 companies on the "Worse" side.
11 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedFinancial results
「Operating income declined despite earnings-enhancing factors such as fixed-cost reductions from structural reforms and the increasing penetration of price revisions, owing to deterioration in raw material and fuel prices, including wood chips and chemicals, and logistics costs.」
Deterioration in logistics costs, together with higher raw material and fuel prices, continued to weigh on operating income. - FY2026WorsenedAnnual report
「The increasingly tense situation in the Middle East is expected to have little impact on fiscal 2025, although its impact on persistently high raw material prices and transportation costs is expected to increase going forward.」
The risk of higher logistics and transportation costs continued, and consolidated transportation and storage expenses increased from ¥63,587 million to ¥65,519 million. - FY2026-H1WorsenedAnnual report
「In the domestic business, sales volume and revenue both exceeded the previous year, as Family Care (hygiene paper) benefited from growth in value-added products such as soft-pack tissues and extra-long toilet paper, supported by expanding demand, as well as from efforts to revise prices in response to soaring logistics and labor costs.」
Higher logistics and labor costs continued to provide the backdrop for price revisions. Transportation and storage expenses included in selling, general and administrative expenses also increased from ¥30,977 million in the same period of the previous year to ¥31,783 million. - FY2025WorsenedAnnual report
「Operating profit decreased by ¥4,559 million from the previous consolidated fiscal year, down 31.7% year on year, to ¥9,807 million, due to persistently high fuel and raw material prices, higher manufacturing fixed costs including repair and labor costs, and soaring logistics costs.」
Soaring logistics costs continued to weigh on profit alongside higher fuel and raw material prices and manufacturing fixed costs. Consolidated transportation and storage expenses also increased from ¥59,511 million to ¥63,587 million. - FY2025-H1RestatedAnnual report
「In the household tissue business, we worked to ensure the penetration of price revisions implemented in response to soaring fuel and raw material prices and logistics costs.」
As high fuel and raw material prices and logistics costs continue, the Company is responding by ensuring the penetration of price revisions. There has been no significant change in the disclosure concerning the risk of soaring logistics costs itself. - FY2024WorsenedAnnual report
「In Japan, the business environment surrounding the Company is expected to remain uncertain, with the population declining, inflation persisting and logistics costs expected to rise due to the 2024 logistics problem. Overseas, geopolitical risks are also increasing.」
The rise in logistics costs resulting from the 2024 logistics problem was added as an explicit cost risk for the next fiscal year, with an uncertain business environment expected to continue amid population decline, inflation and geopolitical risks. - FY2023-Q3WorsenedAnnual report
「At the company, too, prices for major raw materials and fuels, including coal, heavy oil, wood chips and pulp, have remained high as the depreciation of the yen has compounded rising resource prices. Higher logistics expenses and packaging material prices have further contributed to a significant deterioration in manufacturing costs.」
Higher logistics costs and packaging material prices, combined with soaring fuel and raw material prices and the weaker yen, have materialised as higher manufacturing costs in both core businesses. - FY2023-Q2WorsenedAnnual report
「However, in addition to the sharp depreciation of the yen and soaring logistics costs since the second half of last year, fuel and raw material prices have remained high due to the prolonged situation in Ukraine. The business environment surrounding the Group is expected to remain extremely challenging.」
Soaring logistics costs have continued to worsen and become a more serious factor contributing to the deterioration of the business environment, alongside the sharp depreciation of the yen, the situation in Ukraine and persistently high fuel and raw material prices. - FY2022WorsenedAnnual report
「In the paper and pulp industry, the market for graphic paper is also expected to contract further. Sharp increases in costs, including raw material and fuel expenses and logistics costs, due to surging prices for heavy oil, coal and other inputs are having an impact, and we expect the exceptionally challenging operating environment to continue.」
Higher logistics expenses, together with surging raw material and fuel costs, were highlighted as a major cost risk for the next fiscal year, with the challenging operating environment expected to continue. - FY2022-Q3WorsenedAnnual report
「Meanwhile, to address higher costs resulting from increases in the prices of recovered paper, coal and other raw materials and fuels and logistics expenses in the third quarter, as well as higher environmental costs, including measures to reduce greenhouse gas emissions, the company is continuing thorough cost reductions, including reviewing its production structure and cutting expenses, while also working to revise selling prices.」
Higher logistics expenses materialized as cost increases alongside higher raw material and fuel prices, increasing the burden on efforts to improve profitability. - FY2020RestatedAnnual report
「Raw material and fuel prices and logistics costs, which had risen since the previous fiscal year, remained high, making the early implementation of earnings improvement measures an issue at the beginning of the period.」
The surge in logistics costs continued from the previous fiscal year and was reaffirmed as an issue for improving profitability in the home and personal care business. - FY2020-Q1MaterialisedAnnual report
「Although segment profit exceeded the plan set at the beginning of the period, it fell below the same quarter of the previous year due to higher logistics costs in the domestic business and increased promotional expenses in the overseas business, among other factors.」
Higher logistics costs materialized in the domestic business and reduced segment profit in the home and personal care business year on year. - FY2019MaterialisedAnnual report
「The business environment surrounding the Group remains challenging, as domestic demand for paper continues to decline and raw material and fuel prices and logistics costs remain high.」
The continued surge in logistics costs has materialized as a factor weighing on segment profit in the home and personal care business. - FY2019-Q3First statedAnnual report
「Raw material and fuel prices and logistics costs are expected to remain higher than anticipated, and sales targets for domestic baby diapers, where the number of births is declining, are expected to be missed.」
Newly identified persistently high logistics costs as a factor behind the downside to the earnings forecast, with higher logistics costs also affecting segment profit in the home and personal care business.