Supply risk associated with overseas pulp procurement
First written in FY2016. 4 of 11 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2024.
No other company in this theme has enough history to compare yet.
- FY2024RestatedAnnual report
「The Group imports much of the pulp used as a key raw material for its products from overseas. To prepare for supply shortages caused by climate change or political instability, the Group generally purchases from 2 suppliers and otherwise works to ensure stable procurement, including switching to raw materials with lower supply risk and securing inventories of raw materials. However, if procurement costs rise or procurement becomes difficult because of quality issues, deteriorating supply and demand, or other factors, this could affect the Group’s performance.」
The Group continued to address the risks of dependence on overseas pulp, climate change and political instability, and higher procurement costs or procurement difficulties caused by quality issues and deteriorating supply and demand through purchases from 2 suppliers, switching raw materials and securing inventory. - FY2023RestatedAnnual report
「The Group imports much of the pulp used as a key raw material for its products from overseas. To prepare for supply shortages caused by climate change or political instability, the Group generally purchases from 2 suppliers and otherwise works to ensure stable procurement, including switching to raw materials with lower supply risk and securing inventories of raw materials. However, if procurement costs rise or procurement becomes difficult because of quality issues, deteriorating supply and demand, or other factors, this could affect the Group’s performance.」
The Group continued to address the risks of dependence on overseas pulp, climate change and political instability, and higher procurement costs or procurement difficulties caused by quality issues and deteriorating supply and demand through purchases from 2 suppliers, switching raw materials and securing inventory. - FY2022WorsenedAnnual report
「The Group imports much of the pulp used as a key raw material for its products from overseas. To prepare for supply shortages caused by climate change or political instability, the Group generally purchases from 2 suppliers and otherwise works to ensure stable procurement, including switching to raw materials with lower supply risk. However, if procurement costs rise or procurement becomes difficult because of quality issues, deteriorating supply and demand, or other factors, this could affect the Group’s performance.」
In addition to the previously disclosed risks of supply shortages, quality issues and supply capacity constraints, the Company explicitly identified higher procurement costs resulting from deteriorating supply and demand as a risk. - FY2021RestatedAnnual report
「The Group imports much of the pulp used as a key raw material for its products from overseas. To prepare for supply shortages caused by climate change or political instability, the Group generally purchases from 2 suppliers and otherwise works to ensure stable procurement, including switching to raw materials with lower supply risk. However, procurement may become difficult because of quality or supply capacity issues, which could affect the Group’s performance.」
Against the backdrop of dependence on overseas pulp, the Group continued to ensure stable procurement through purchases from 2 suppliers as a general rule and by switching raw materials. - FY2020RestatedAnnual report
「The Group imports much of the pulp used as a key raw material for its products from overseas. To prepare for supply shortages caused by climate change or political instability, the Group generally purchases from 2 suppliers and otherwise works to ensure stable procurement, including switching to raw materials with lower supply risk.」
Against the backdrop of dependence on overseas pulp, the Group continued to ensure stable procurement through purchases from 2 suppliers as a general rule and by switching raw materials. - FY2019-Q1MaterialisedAnnual report
「Amid sluggish sales following the surge in abaca prices, revenue for the first quarter of the current fiscal year was ¥492 million, down ¥240 million, or 32.8%, year on year.」
Sluggish sales continued following the surge in abaca prices, and pulp revenue fell 32.8% year on year. The deterioration in the pricing and supply environment for overseas pulp procurement continued to materialize. - FY2018MaterialisedAnnual report
「Since then, the Company has worked to provide financial support, including loans, to improve its financial position; establish a stable procurement system for abaca, the raw material for pulp; provide technical assistance to improve pulp quality and productivity; and maintain and strengthen relationships of trust with business partners. However, the business environment changed significantly due to soaring prices caused by intensifying competition for abaca procurement and other factors.」
Intensifying competition for abaca procurement and soaring prices actually occurred, and the risk associated with overseas pulp procurement materialized as a deterioration in the business environment. - FY2018-Q1MitigatedAnnual report
「Meanwhile, because insurance proceeds of ¥135 million related to the typhoon disaster at a consolidated subsidiary in the Philippines were recorded as extraordinary income, profit attributable to owners of the parent for the quarter was ¥522 million, compared with a quarterly loss attributable to owners of the parent of ¥92 million in the same quarter of the previous year.」
For the typhoon disaster at the Philippine subsidiary that occurred in the previous fiscal year, insurance proceeds of ¥135 million were recorded as extraordinary income, recognizing monetary compensation for the damage. - FY2017MaterialisedAnnual report
「This loss arose from the disaster suffered by consolidated subsidiary Albay Agro-Industrial Development Corporation as a result of Typhoon No. 26, which made landfall in central Philippines on 25 December 2016.」
The Company recorded a disaster loss of ¥172.505 million arising from typhoon damage, and the supply risk at its overseas pulp operations materialized as actual damage. - FY2017-Q3MaterialisedAnnual report
「On 25 December 2016, Typhoon No. 26, which made landfall in central Philippines, caused partial damage to buildings and water damage to raw materials and products stored at Albay Agro-Industrial Development Corporation, a consolidated subsidiary, whose headquarters are in Makati City and whose plant is in Albay Province. Operations were temporarily suspended but resumed in stages from 12 January 2017. The relevant assets are insured, but the actual amount of the damage had not been determined at that time. It was also difficult at that time to reasonably estimate the impact of the disaster on the Group’s future business activities and other operations.」
An overseas pulp-manufacturing subsidiary suffered damage to its buildings, raw materials and products from a typhoon, resulting in a temporary suspension of operations. Operations resumed in stages from 12 January 2017, but the actual amount of the damage and the impact on business activities remained undetermined. - FY2016First statedAnnual report
「The Group imports much of the pulp used as a key raw material for its products from overseas. To prepare for supply shortages caused by adverse weather or political instability, the Group generally purchases from 2 suppliers and otherwise works to ensure stable procurement. However, procurement may become difficult because of quality or supply capacity issues, which could affect the Group’s performance.」
The Company identified its dependence on overseas pulp, adverse weather and political instability, and procurement difficulties due to quality and supply capacity as risks, and addresses them through procurement from 2 suppliers as a general rule.