Decline in Sales Due to Inventory Adjustments by Some Customers
First written in FY2019-Q3. 2 of 5 entries say "Mitigated", first in FY2020-Q2. Latest entry: FY2022.
The whole theme swung hardest in 2020: 3 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「Orders for the core products of commercial cooking paper and products for oshibori towels increased steadily, helped by temporary signs of recovery in the foodservice market following the lifting of the state of emergency.」
Orders for cooking paper and other products, which declined in the previous fiscal year due to inventory adjustments and other factors, increased steadily, and revenue from pulp nonwoven products rose 4.1% from the previous fiscal year. - FY2020-Q3RestatedAnnual report
「Sales of pulp nonwoven products increased, supported by steady sales of products for drip-absorption sheets and cooking paper.」
Sales of cooking paper and other products, which declined in the previous fiscal year due to inventory adjustments and other factors, remained steady, and revenue from the nonwoven products business increased 1.1% year on year. - FY2020-Q2MitigatedAnnual report
「Revenue in the pulp nonwoven products segment increased as sales of products for drip absorption sheets and cooking paper, which had declined in the previous fiscal year, recovered. However, profit declined because pulp prices remained high and for other reasons. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥3,911 million, up 4.3% year on year, while segment profit was ¥625 million, down 4.7%.」
Although there was no direct reference to inventory adjustments, sales of cooking paper and other products that had declined in the previous fiscal year entered a recovery trend, and revenue in the nonwoven-related business increased 4.3% year on year. - FY2019MaterialisedAnnual report
「Although sales of products for oshibori towels increased, sales of products for drip absorption sheets declined, as did cooking paper sales due to inventory adjustments and other factors at certain customers. As a result, revenue and profit in the pulp nonwoven products segment both declined.」
The decline in cooking paper sales due to inventory adjustments and other factors at certain customers continued throughout the year and became a factor behind lower revenue and profit in the nonwoven-related business. - FY2019-Q3First statedAnnual report
「Sales and profit in the pulp nonwoven products segment declined because sales of cooking paper decreased due to inventory adjustments and other factors at certain customers. As a result, revenue for the current consolidated fiscal year was ¥5,714 million, down 2.1% year on year, and segment profit was ¥982 million, down 8.9%.」
The company states that inventory adjustments and other factors at certain customers actually led to lower cooking paper sales and, consequently, lower revenue and profit.