Rising purchase prices for raw materials and fuel
First written in FY2016. 11 of 41 entries say "Mitigated", first in FY2019-Q1. Latest entry: 2026-10-14.
Okayama Paper Industries moved to the "Worse" side of this theme in 2017, 1 year 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 "Restated".
- 2026-10-14RestatedEarnings
「2027年５月期の業績予想につきましては、需要の動向や板紙製品市況等不透明な要素が多いことから、2026年７月14日の決算短信で公表した業績予想を変更しておりません。」
2027年5月期の通期業績予想は、前回の下方修正後の数値から変更されていない。 - FY2026MitigatedAnnual report
「Recovered paper prices declined 3.6% from the previous fiscal year, contributing positively to profit. LNG usage declined 2.6% as sales volume, and therefore production volume, fell, while procurement prices per unit declined 10.3%, resulting in a 12.6% decline in total LNG purchases and contributing positively to profit for the fiscal year.」
Recovered paper prices and LNG procurement prices declined, and total LNG purchases also fell 12.6%, easing the pressure on profit from rising raw material and fuel prices compared with the previous period. - FY2025MaterialisedAnnual report
「Recovered paper prices rose 8.0% from the previous fiscal year, becoming a factor behind the decline in profit. LNG usage increased 2.5% and procurement prices per unit increased 2.9%, resulting in a 5.6% increase in total LNG purchases and becoming one of the factors behind the decline in profit for the fiscal year.」
Recovered paper prices rose 8.0%, while LNG usage, unit prices and total purchases also increased. The rise in raw material and fuel prices was reflected in actual results as a factor behind the decline in profit, including a 38.6% decrease in operating profit. - FY2025-H1WorsenedAnnual report
「However, profit declined significantly as purchase prices for recovered paper rose and product transportation costs also surged. As a result, revenue for the interim accounting period was ¥5,966 million, up 2.3% year on year, operating profit was ¥637 million, down 36.2% year on year, ordinary profit was ¥697 million, down 33.6% year on year, and interim net income was ¥483 million, down 33.6% year on year.」
Purchase prices for recovered paper and transportation costs actually rose, and operating profit declined 36.2% year on year. The pressure on earnings from higher raw material, fuel and procurement costs has re-emerged strongly. - FY2024MitigatedAnnual report
「LNG usage was broadly unchanged, increasing 1.2% from the previous fiscal year, while procurement prices fell 22.2%, resulting in a 21.3% decline in total LNG purchases and contributing to higher profit for the fiscal year.」
LNG usage was broadly unchanged, but procurement prices fell 22.2% and total purchases declined 21.3%, easing the pressure on profit from rising raw material and fuel prices compared with the previous period. Meanwhile, recovered paper procurement prices remained high. - FY2024-Q3MitigatedAnnual report
「Although recovered paper and LNG prices remained at high levels, profit increased significantly due partly to the effect of product price revisions.」
Although recovered paper and LNG prices remained at high levels, the effect of product price revisions and other factors eased the impact of rising raw material and fuel prices on profit, and operating profit increased 284.6% from the same quarter of the previous year. - FY2024-Q2MitigatedAnnual report
「Although recovered paper and LNG prices remained at high levels, profit increased significantly due partly to the effect of product price revisions.」
Although recovered paper and LNG prices remained at high levels, the effect of product price revisions and other factors eased the impact of rising raw material and fuel prices on profit during the cumulative quarter. - FY2024-Q1MitigatedAnnual report
「Although recovered paper and LNG prices remained at high levels, profit increased due to the effect of product price revisions.」
While recovered paper and LNG prices remained at high levels, the effect of product price revisions eased the impact of rising raw material and fuel prices on profit during the quarter. - FY2023WorsenedAnnual report
「LNG usage declined 3.5% from the previous fiscal year as production fell, but procurement prices rose 71.0%, resulting in a 65.0% increase in total LNG purchases and significantly reducing profit for the fiscal year.」
LNG procurement prices rose 71.0% and total purchases increased 65.0%. The increase in raw material and fuel costs could not be absorbed through product price revisions, putting pressure on profit. - FY2023-Q3MaterialisedAnnual report
「As unit prices for recovered paper, the raw material for paperboard, and LNG, the main fuel, were expected to rise and squeeze profit, we continued working to ensure that the product price revisions implemented in the previous fiscal year took hold, but they were not enough to cover the increase in costs.」
Unit prices for recovered paper and LNG continued to rise, and the spread of product price revisions still failed to cover the higher costs. Segment profit in the paperboard business declined 24.8% from the same quarter of the previous year, and the risk of rising raw material and fuel prices continues to affect profit. - FY2023-Q2MaterialisedAnnual report
「As unit prices for recovered paper, the raw material for paperboard, and LNG, the main fuel, were expected to rise and squeeze profit, we continued working to ensure that the product price revisions implemented in the previous fiscal year took hold, but they were not enough to cover the increase in costs.」
Unit prices for recovered paper and LNG continued to rise, and the spread of product price revisions implemented in the previous period still failed to cover the higher costs. The risk of rising raw material and fuel prices is having an actual impact on profit. - FY2023-Q1MaterialisedAnnual report
「As unit prices for recovered paper, the raw material for paperboard, and LNG, the main fuel, were expected to rise and squeeze profit, we continued working to ensure that the product price revisions implemented in the previous fiscal year took hold, but they were not enough to cover the increase in costs.」
Unit prices for recovered paper and LNG actually increased, and the spread of product price revisions still failed to cover the higher costs, putting pressure on profit. - FY2022WorsenedAnnual report
「LNG usage increased 7.5% from the previous fiscal year as production recovered, while procurement prices rose 30.1%, resulting in a 39.9% increase in total LNG purchases.」
LNG usage, procurement prices and total purchases all increased, intensifying the pressure on profit from rising raw material and fuel prices. Operating profit declined 16.6% from the previous period due to surging raw material and fuel prices. - FY2022-Q3WorsenedAnnual report
「Meanwhile, supply and demand for recovered paper, a raw material for paperboard, remained tight and purchase prices continued to rise. The unit price of LNG, the main fuel, also continued to rise significantly.」
Tight supply and demand for recovered paper, rising purchase prices and continued significant increases in LNG unit prices are cited, indicating that the risk of rising raw material and fuel prices has intensified further from the previous quarter. Surging raw material and fuel prices also put pressure on profit in the paperboard business. - FY2022-Q2MaterialisedAnnual report
「The supply and demand balance for recovered paper, a raw material for paperboard, has tightened and purchase prices have risen due to lower paper generation resulting from sluggish economic activity and increased exports to Southeast Asia. The unit price of LNG, the main fuel, has also continued to rise.」
Tight supply and demand for recovered paper, rising purchase prices and continued increases in LNG unit prices actually occurred, and the risk of rising raw material and fuel prices has materialized. - FY2022-Q1WorsenedAnnual report
「The supply and demand balance for recovered paper, a raw material for paperboard, is tightening as paper generation has declined due to sluggish economic activity and exports to Southeast Asia have increased. The unit price of LNG, the main fuel, is also trending upward, but remained within the expected range during the cumulative first quarter.」
The tightening supply and demand balance for recovered paper and the upward trend in LNG unit prices are cited, indicating increased risks concerning raw material and fuel purchase prices and procurement conditions. However, LNG unit prices remained within the expected range during the quarter. - FY2021MitigatedAnnual report
「LNG usage was broadly unchanged from the previous fiscal year, but procurement prices fell 16.6%, resulting in a 16.8% decline in total LNG purchases.」
Recovered paper prices remained stable, while LNG procurement prices fell 16.6% and total purchases fell 16.8%, easing the pressure on earnings from rising raw material and fuel prices compared with the previous period. Meanwhile, the supply and demand balance for recovered paper was tightening. - FY2021-Q3RestatedAnnual report
「In terms of profit, recovered paper prices and the price of LNG, the main fuel, remained stable from the previous year, but profit declined from the same quarter of the previous year due to the impact of lower revenue.」
Recovered paper and LNG prices continued to remain stable, and the pressure on earnings from rising raw material and fuel prices did not intensify. Meanwhile, lower revenue became a factor behind the decline in profit. - FY2021-Q2RestatedAnnual report
「In terms of profit, recovered paper prices and the price of LNG, the main fuel, remained stable from the previous year, but profit declined from the same quarter of the previous year due to the impact of lower revenue.」
Recovered paper and LNG prices have continued to remain stable, and the pressure on earnings from rising raw material and fuel prices has not intensified. Meanwhile, lower revenue became a factor behind the decline in profit. - FY2021-Q1RestatedAnnual report
「In terms of profit, recovered paper prices and the price of LNG, the main fuel, remained stable from the previous year, but profit declined from the same quarter of the previous year due to the impact of lower revenue.」
Recovered paper and LNG prices have continued to remain stable, and the pressure on earnings from rising raw material and fuel prices has not intensified. - FY2020MitigatedAnnual report
「Although exports to China declined during the fiscal year, the resulting stability in domestic circulation helped keep recovered paper prices stable throughout the period, with prices down 13.8% from the previous fiscal year, contributing to profit. LNG procurement prices also declined from the previous period as global energy demand fell partly due to the impact of COVID-19. Although prices were down 4.6% from the previous fiscal year, reduced LNG usage accompanying lower production resulted in an 11.2% decline in total LNG purchases.」
Recovered paper and LNG prices declined, and total LNG purchases also fell 11.2%, easing the pressure on earnings from rising raw material and fuel prices compared with the previous period. - FY2020-Q3RestatedAnnual report
「Recovered paper prices and the price of LNG, the main fuel, were both stable, resulting in an increase in profit from the same quarter of the previous year.」
Recovered paper and LNG prices continued to remain stable, and the pressure on earnings from rising raw material and fuel prices did not intensify during the quarter. - FY2020-Q2RestatedAnnual report
「In terms of earnings, the product price revisions for paperboard products took hold, limiting the decline in revenue relative to the decrease in sales volume. In addition, prices of recovered paper and LNG, the main fuel, remained stable, resulting in higher earnings than in the same quarter of the previous year.」
Recovered paper and LNG prices both remained stable, and the pressure on earnings from rising raw material and fuel prices has also remained contained during the quarter. - FY2020-Q1MitigatedAnnual report
「In terms of profit, recovered paper prices were stable and the price of LNG, the main fuel, was also trending downward, resulting in an increase in profit from the same quarter of the previous year.」
Recovered paper prices stabilized and LNG prices began trending downward, easing the pressure on earnings from rising raw material and fuel prices during the quarter. - FY2019MitigatedAnnual report
「Although recovered paper prices peaked during the fiscal year, the full-year increase was limited to 1.2% from the previous fiscal year. LNG prices rose 15.4% from the previous fiscal year, but the reduction in usage also helped limit the increase in total LNG purchases to 13.0%.」
Recovered paper and LNG prices actually increased, but the spread of price revisions and reduced usage increased operating profit to ¥752 million, easing the pressure on earnings seen in the previous period. - FY2019-Q3MitigatedAnnual report
「For the nine-month period ended in the third quarter, sales of containerboard (fluting paper), our main product, remained firm amid the spread of e-commerce, including online mail-order sales, and active freight movement supported by favorable economic conditions. Although recovered paper prices were unstable due to the impact of exports to China, revenue and earnings increased, partly because the product price revisions took hold.」
Recovered paper prices were volatile, but revenue and profit increased as product price revisions took hold despite the impact of raw material and fuel prices. The raw material price risk itself remains, although its impact on earnings has eased from the previous period. - FY2019-Q2MaterialisedAnnual report
「Although recovered paper prices surged due to increased exports to China, revenue and profit increased as product price revisions took hold.」
Recovered paper prices actually surged against a backdrop of increased exports to China. However, as product price revisions took hold, the impact of higher raw material prices was absorbed, resulting in increases in both revenue and profit. - FY2019-Q1MitigatedAnnual report
「In terms of profit, although fuel prices were trending upward, recovered paper prices were significantly lower than in the same quarter of the previous year, resulting in a significant increase in profit.」
While fuel prices were trending upward, recovered paper prices were significantly below the same quarter of the previous year, easing the pressure on earnings from rising raw material and fuel prices compared with the previous fiscal year. - FY2018WorsenedAnnual report
「This was because recovered paper prices rose 11.1% and fuel prices rose 14.6% from the previous fiscal year, while paperboard product prices rose only 9.3%.」
Recovered paper prices rose 11.1% and fuel prices 14.6%, while product prices rose only 9.3%, quantifying the situation in which cost increases could not be absorbed through price revisions. - FY2018-Q3MaterialisedAnnual report
「During the cumulative third quarter, the price of recovered paper used as a raw material for base paper surged due to increased overseas demand, making the operating environment surrounding us as a base paper manufacturer extremely challenging. However, in the paperboard business, revenue increased partly because of the effect of product price revisions, but this was insufficient to fully absorb the higher costs resulting from surging raw material prices, resulting in a significant decline in profit.」
Recovered paper prices continued to surge against a backdrop of increased overseas demand, and product price revisions still failed to fully absorb the higher costs resulting from surging raw material prices, resulting in a significant decline in profit. - FY2018-Q2MaterialisedAnnual report
「During the cumulative second quarter, the price of recovered paper used as a raw material for base paper surged due to increased overseas demand, making the operating environment surrounding us as a base paper manufacturer extremely challenging. However, in the paperboard business, revenue increased partly because of the effect of product price revisions, but this was insufficient to absorb the higher costs resulting from surging raw material prices, resulting in a significant decline in profit.」
Recovered paper prices surged against a backdrop of increased overseas demand, and product price revisions failed to absorb the higher costs, resulting in a significant decline in profit, including an operating loss of ¥156 million. - FY2018-Q1WorsenedAnnual report
「During the cumulative first quarter, the price of recovered paper used as a raw material for base paper rose sharply due to increased overseas demand, making the operating environment surrounding us as a base paper manufacturer extremely challenging. However, in the paperboard business, revenue increased partly because of the effect of product price revisions, but this was insufficient to absorb the higher costs resulting from surging raw material prices, resulting in a significant decline in profit.」
Recovered paper prices surged against a backdrop of increased overseas demand, and the environment is described as “extremely challenging.” Product price revisions failed to absorb the higher costs resulting from surging raw material prices, resulting in a significant decline in profit. - FY2017MaterialisedAnnual report
「In terms of profit, the price of recovered paper rose significantly in the second half of the period, resulting in raw material costs increasing 7.9% year on year.」
A significant increase in recovered paper prices and a 7.9% year-on-year increase in raw material costs actually occurred, becoming factors behind a significant decline in operating profit. - FY2017-Q3MaterialisedAnnual report
「In the paperboard business, profit declined due to a significant increase in raw material costs, despite a decrease in fuel and other costs.」
A significant increase in raw material costs actually occurred and reduced profit in the paperboard business despite a decrease in fuel and other costs. - FY2017-Q2RestatedAnnual report
「However, profit increased due to a decrease in fuel and other costs.」
While no material change is said to have occurred in the risk of rising raw material and fuel prices, a decrease in fuel and other costs continues to be cited as a factor behind the increase in profit. - FY2017-Q1Decrease in fuel and other costsAnnual report
「However, profit increased due to a decrease in fuel and other costs.」
While no material change is said to have occurred in the risk of rising raw material and fuel prices, a decrease in fuel and other costs is cited as a factor behind the increase in profit for the quarter. - FY2016First statedAnnual report
「The prices of the raw materials and fuels we purchase fluctuate according to supply and demand trends in China, Asia and Japan for recovered paper, our main raw material, and international market conditions for industrial gas, our main fuel. If purchase prices rise, this could adversely affect our operating results and financial position.」
While high recovered paper prices continued in the paperboard industry, the report states that lower fuel prices contributed to profit for the fiscal year.