Fluctuations in Raw and Fuel Material Prices and Exchange Rates
First written in FY2016. 14 of 30 entries say "Worsened", first in FY2018-Q2. Latest entry: 2026-08-06.
Daio Paper moved to the "Worse" side of this theme in 2016, 2 years before the typical company in this theme (2018).
The whole theme swung hardest in 2025: 5 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedEarnings
「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 raw material and fuel prices and logistics costs offset the benefits of structural reforms and price revisions, contributing to the decline in first-quarter earnings. - FY2026Partial absorption of persistently high raw material and fuel costsAnnual report
「Operating profit increased by ¥14,224 million from the previous consolidated fiscal year, or 145.0% year on year, to ¥24,032 million, owing to benefits from coal prices and improved energy costs following the restart of the boiler at Iwaki Daio Paper Corporation, despite persistently high unit prices for recovered paper and chemicals.」
Although high recovered paper and chemical prices have continued, part of the impact was absorbed through the benefit of lower coal prices and improved energy costs resulting from restarting the boiler. - 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 factors including persistently high raw material and fuel prices, higher manufacturing fixed costs such as repair and labour expenses, and soaring logistics costs. …As a result of recording a foreign exchange loss and other factors, ordinary profit was ¥4,530 million.」
Persistently high raw material and fuel prices, manufacturing fixed costs and logistics expenses reduced operating profit, while a foreign exchange loss of ¥3,339 million was also recorded in ordinary profit. - FY2025-H1WorsenedAnnual report
「As a result, in the Paper and Paperboard business, sales were at the same level as in the same period of the previous year, but segment profit fell below the previous year's level due to factors including declining domestic demand, higher raw material and fuel prices such as recovered paper and imported wood chips, and higher fixed costs including repair expenses. Foreign exchange loss 2,206」
Higher raw material and fuel prices, including recovered paper and imported wood chips, reduced profit in the Paper and Paperboard business, and a foreign exchange loss of ¥2,206 million was recorded in the first half. The impact of raw material and fuel price and foreign exchange fluctuations continues. - FY2024-Q2RestatedAnnual report
「However, the risks of domestic economic deterioration from inflation caused by surging raw material and energy prices due to the prolonged situation in Ukraine and yen depreciation, as well as a global economic downturn resulting from global monetary tightening, remain high, and the outlook is still uncertain.」
The prolonged situation in Ukraine, surging raw material and energy prices due to yen depreciation, and global monetary tightening continue to be identified as risks in the operating environment. - FY2024-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, Japan's economy was moving toward normalisation as restrictions on activities related to COVID-19 were eased and COVID-19 was reclassified as a Class 5 disease under the Infectious Diseases Control Law. However, the outlook remained uncertain due to the prolonged situation in Ukraine, soaring resource and raw material prices, and inflation resulting from yen depreciation.」
The prolonged situation in Ukraine, soaring resource and raw material prices, and inflation resulting from yen depreciation continue to be identified as risks in the external environment. - 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.」
In addition to persistently high resource prices and yen depreciation, higher logistics expenses and packaging material prices have compounded the situation, causing the risk of significant deterioration in manufacturing costs to continue and intensify. - FY2023-Q2WorsenedAnnual report
「Manufacturing costs continue to deteriorate significantly due to surging prices for major imported raw materials and fuels, including coal, heavy oil, wood chips and pulp, amid geopolitical risks with no end in sight and the rapid depreciation of the yen.」
Geopolitical risks and the rapid depreciation of the yen have led to continued surges in imported raw material and fuel prices and deterioration in manufacturing costs, creating a situation that cannot be fully offset by passing on costs or reducing costs. - FY2023-Q1WorsenedAnnual report
「The prices of imported raw materials and fuel have risen to unprecedented levels due to persistently high global resource prices, including coal and heavy oil, and a sharp depreciation of the yen」
In addition to persistently high resource prices, imported raw material and fuel prices have risen to unprecedented levels due to the sharp depreciation of the yen, intensifying the impact of raw material and fuel price and foreign exchange fluctuation risks. - FY2022WorsenedAnnual report
「Meanwhile, in response to soaring logistics and raw material and fuel costs and higher environmental costs, including measures to reduce greenhouse gas emissions, the company has continued thorough cost reductions, including reviewing its production structure and cutting expenses, and has also worked to revise selling prices since the fourth quarter.」
In addition to surging raw material and fuel prices and logistics expenses, higher environmental costs emerged as factors increasing costs, and the company is responding through cost reductions and selling price revisions. - 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 prices for recovered paper, coal and other raw materials and fuels and higher logistics expenses resulted in increased costs, compounded by higher environmental costs. - FY2022-Q2WorsenedAnnual report
「The outlook is increasingly uncertain due to the recent worldwide surge in resource prices, particularly coal and natural gas.」
Resource prices, including coal and natural gas, have surged worldwide, increasing uncertainty over raw material and fuel price fluctuation risk. The company stated that higher costs arose in the Paper and Paperboard business but were absorbed through structural transformation and other measures. - FY2021MitigatedAnnual report
「Fluctuations in foreign exchange rates may also affect export sales of paper and paperboard products and household paper products overseas, as well as sales activities at overseas subsidiaries. To mitigate the impact of foreign exchange fluctuations on operating results, the Group hedges the risk on certain transactions using forward foreign exchange contracts. In addition, recognising the importance of strengthening systems involving business partners and promoting information sharing in response to raw material and fuel price fluctuations, the Group is promoting SDGs procurement.」
In addition to hedging with forward foreign exchange contracts, the company identified SDGs procurement conducted jointly with business partners and securing a stable supply system as risk responses. - FY2020MitigatedAnnual report
「Segment profit exceeded that of the previous year due to the widespread implementation of price revisions for woodfree paper and paperboard, raw material and fuel prices being lower than expected, and increased collection and use of difficult-to-process recovered paper.」
Although the risks of higher raw material and fuel and recovered paper prices remain, cost increases were absorbed through price revisions and the use of difficult-to-process recovered paper, improving profit in the Paper and Paperboard segment. - FY2020-Q3MitigatedAnnual report
「Segment profit exceeded that of the same quarter of the previous year due to the widespread implementation of price revisions for woodfree paper and paperboard, raw material and fuel prices remaining lower than expected, and increased collection and use of difficult-to-process recovered paper.」
Raw material and fuel price trends were lower than assumed, and together with price revisions and the use of difficult-to-process recovered paper, this led to an improvement in segment profit. - FY2020-Q2MitigatedAnnual report
「Segment profit exceeded that of the same quarter of the previous year because higher costs resulting from surging prices for raw materials and fuel, including chips and coal, were absorbed through increased collection and use of difficult-to-process recovered paper and the implementation of price revisions for woodfree paper and paperboard.」
Although higher raw material and fuel prices continue to increase costs, this was absorbed through increased collection and expanded use of difficult-to-process recovered paper and price revisions, and profit in the Paper and Paperboard segment was 97.1% higher than in the same period of the previous year. - FY2020-Q1MitigatedAnnual report
「Segment profit exceeded that of the same quarter of the previous year because higher costs resulting from surging prices for raw materials and fuel, including chips, recovered paper and coal, were absorbed through increased collection and use of difficult-to-process recovered paper and the implementation of price revisions for woodfree paper and other products.」
Although higher raw material and fuel prices resulted in higher costs, these were absorbed through increased collection and use of difficult-to-process recovered paper and price revisions, and profit in the Paper and Paperboard segment exceeded the same period of the previous year. - FY2019RestatedAnnual 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.」
Persistently high raw material and fuel prices are affecting profitability in the Paper and Paperboard and Home & Personal Care businesses. The risk disclosure remains unchanged. - FY2019-Q3RestatedAnnual report
「Since October 2018, the Paper and Paperboard business has undertaken initiatives to improve profitability, including the use of difficult-to-process recovered paper, in response to the major scheduled repair work at its mills and surging raw material and fuel prices. However, conditions remain challenging.」
Surging raw material and fuel prices continue to weigh on profitability in the Paper and Paperboard business. The company is promoting the use of difficult-to-process recovered paper and other profitability improvement measures, but there has been no material change in the risk disclosure. - FY2019-Q2WorsenedAnnual report
「Despite higher costs resulting from surging raw material and fuel prices, segment profit turned positive from a segment loss in the same quarter of the previous year, owing to price revisions for containerboard and corrugated products and cost reductions at the plants.」
Higher raw material and fuel costs resulting from surging prices emerged as a factor reducing profit in the Paper and Paperboard business during the quarter. - FY2019-Q1WorsenedAnnual report
「Foreign exchange loss 273」
The company recorded a foreign exchange loss of ¥273 million in the first quarter. The foreign exchange loss increased from ¥184 million in the same quarter of the previous year. - FY2018WorsenedAnnual report
「Operating profit decreased by ¥12,473 million from the previous consolidated fiscal year, down 53.0% year on year, mainly due to the impact of higher recovered paper and raw material and fuel prices, to ¥11,062 million.」
Higher recovered paper and raw material and fuel prices reduced operating profit by ¥12,473 million, increasing the impact of raw material and fuel price fluctuation risk. The company also disclosed that some transactions were hedged through forward foreign exchange contracts. - FY2018-Q3WorsenedAnnual report
「Although segment profit turned positive in the October–December third quarter due to price increases for printing paper and containerboard, it was below that of the same quarter of the previous year because of higher recovered-paper, raw material and fuel prices and delays beyond the initial forecast in finalizing the printing-paper price increase.」
The increase in recovered paper and raw material and fuel prices and the delay in finalising printing paper price increases continued, resulting in a cumulative loss of ¥1,037 million in the Paper and Paperboard segment. - FY2018-Q2WorsenedAnnual report
「Segment profit fell below the same quarter of the previous year due to higher raw material costs, including the increase in recovered paper prices, and the delay beyond initial expectations in finalising price revisions for printing paper.」
Higher raw material costs resulting from rising recovered paper prices and the delay in price revisions reduced profit in the Paper and Paperboard business, which recorded a loss of ¥1,602 million. - FY2018-Q1MaterialisedAnnual report
「The segment recorded a loss of ¥469 million, due to higher raw material costs resulting from rising recovered paper prices, as well as lower selling prices.」
Higher raw material costs resulting from rising recovered paper prices emerged as a factor contributing to the Paper and Paperboard segment's loss. The foreign exchange loss was ¥184 million. - FY2017MaterialisedAnnual report
「Foreign exchange loss ¥1,205 million」
The company recorded a foreign exchange loss of ¥1,205 million in the consolidated fiscal year. Trends in raw material and fuel prices and foreign exchange rates remain uncertain, and the company continues to identify them as risks, including rising recovered paper prices. - FY2017-Q3MaterialisedAnnual report
「Foreign exchange loss ¥1,762 million」
The company recorded a foreign exchange loss of ¥1,762 million in the nine-month period of the third quarter of the consolidated fiscal year. Meanwhile, lower raw material and fuel costs resulting from yen appreciation increased profit in the Paper and Paperboard segment. - FY2017-Q2MaterialisedAnnual report
「Foreign exchange loss ¥2,151 million」
A foreign exchange loss of ¥2,151 million was recorded due to foreign exchange movements. Meanwhile, lower raw material and fuel costs resulting from yen appreciation were cited as a factor increasing profit in the Paper and Paperboard segment. - FY2017-Q1MaterialisedAnnual report
「Foreign exchange loss ¥1,446 million」
The company recorded a foreign exchange loss of ¥1,446 million in the first quarter, resulting in an earnings impact from foreign exchange movements. - FY2016First statedAnnual report
「The Group purchases raw materials and fuel, including wood chips, recovered paper, chemicals, heavy oil and coal, in Japan and overseas. In addition to fluctuations in raw material and fuel prices, fluctuations in foreign exchange rates related to the procurement of raw materials and fuel traded in foreign currencies may affect the Group's financial position and operating results.」
The company explained that rising raw material and fuel prices due to yen depreciation reduced ordinary profit during the period, with the impact of the risk reflected in actual results.