Intensifying Competition and Delayed Pass-Through of Raw Material Costs
First written in FY2023. 1 of 3 entries say "Worsened", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2022: 15 of 21 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Uncertainty about the outlook continued, owing to factors including inflation caused by persistently high resource and raw-material prices, the inflow of inexpensive chemicals from overseas, significant foreign-exchange fluctuations and political instability.」
The Company continues to disclose concerns regarding the competitive and price pass-through environment arising from the inflow of inexpensive chemicals from overseas, raw-material prices, foreign exchange and political conditions. - FY2025WorsenedAnnual report
「Uncertainty about the outlook continued, owing to factors including the inflow of inexpensive chemicals from overseas, significant foreign-exchange fluctuations and political instability.」
In addition to the previously identified risks of intensifying competition and delays in passing through prices, the Company explicitly identifies the inflow of inexpensive chemicals from overseas as a factor in the operating environment. - FY2023First statedAnnual report
「The sharp increases in raw-material, fuel and other prices in recent years have made it urgent to pass these costs through to selling prices. The Company continues to negotiate prices with customers to secure appropriate margins while monitoring market conditions and competitors' trends, but any time lag between changes in procurement prices and selling prices could affect the Group's financial position and operating results.」
In addition to the competitive environment, the Company identifies differences and time lags between changes in procurement and selling prices as earnings risks.