Risk of soaring prices and supply shortages for petroleum-based raw materials
First written in FY2016. 10 of 26 entries say "Materialised", first in FY2018-Q3. Latest entry: 2026-07-31.
Asahi Yukizai moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2018: 5 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2026ReframedAnnual report
「Our products use materials such as polyvinyl chloride resin and phenolic resin, and petrochemical-based raw materials account for a high proportion of their composition, making the stable and timely procurement of these materials important. Depending on market conditions, prices may surge, while deterioration in the supply-demand balance for raw materials and geopolitical risks, including conflicts and political instability in the Middle East, may cause raw material prices to rise or supply shortages to occur, potentially adversely affecting our production activities and business performance.」
In addition to the existing risks of surging raw material prices and supply shortages, deterioration in supply and demand and geopolitical risks such as conflict and political instability in the Middle East have been explicitly added. Procurement from multiple suppliers, supplier diversification, and passing costs through to product prices remain ongoing countermeasures. - FY2025MitigatedAnnual report
「To avoid these risks, we regularly gather information from a broad range of raw material suppliers and procure materials without relying on any particular company, enabling us to purchase the required quantities at optimal prices. If raw material prices rise, we will reflect the increase in product prices in a timely and appropriate manner. To prepare for supply shortages caused by an imbalance between supply and demand, we procure materials from multiple suppliers on an ongoing basis to mitigate this risk.」
Measures addressing the risks of surging raw material prices and supply shortages have been formalized as supplier diversification, procurement from multiple suppliers, and passing costs through to product prices. Suppliers are also required to respect human rights, labor, the environment, and the prevention of misconduct, as well as to comply with applicable laws and regulations. - FY2025-H1RestatedAnnual report
「Although we are implementing price revisions to address surging raw material prices and promoting consultative sales, including proposals to switch to higher-value-added products, the impact of reduced automobile production due to automakers' type-approval issues has continued, resulting in lower domestic sales year on year.」
We continue to implement price revisions in response to surging raw material prices. Although measures to address the surge itself are progressing, domestic sales declined in the Resins business due to other demand factors. - FY2024MitigatedAnnual report
「Although high raw material prices in the previous fiscal year remained elevated in the current fiscal year, the company was able to sell its products at appropriate prices in response.」
Although elevated raw material prices continued, selling at appropriate prices enabled the resin business to make greater progress than in the previous fiscal year in addressing higher raw material costs. - FY2024-Q3MaterialisedAnnual report
「Although profit was affected by higher personnel expenses and raw material prices, it exceeded the previous year mainly because of higher overseas sales and the weaker yen.」
The impact of higher raw material prices continues to be reflected in profit. Meanwhile, higher overseas sales and the weaker yen lifted profit in the pipe materials systems business above the previous year. - FY2024-Q2MaterialisedAnnual report
「Although profit was affected by higher personnel expenses and raw material prices, it exceeded the previous year mainly because of higher overseas sales and the weaker yen.」
In the pipe materials systems business, higher personnel expenses and raw material prices actually had an impact, while higher overseas sales and the weaker yen lifted profit above the previous year. - FY2024-Q1MitigatedAnnual report
「Profit exceeded the previous year as a result of higher domestic and overseas sales and the implementation of product price revisions.」
Although the impact of higher raw material prices remains, product price revisions lifted profit in the resin business above the same period of the previous year. Measures including the pass-through of costs partially eased the profit pressure seen through the previous fiscal year. - FY2023-Q3Higher raw material prices have leveled off, but delays in passing through costs continueAnnual report
「Although increases in raw material prices had leveled off for molded products and foam materials, selling price adjustments failed to keep pace, resulting in lower profit for the resin business overall than in the previous year.」
Although increases in raw material prices have leveled off, selling price adjustments have failed to keep pace for molded products and foam materials, and the impact of raw material price risk remains in the form of lower profit. - FY2023-Q2WorsenedAnnual report
「Although high-performance materials exceeded the previous year, the response to continued increases in raw material prices did not keep pace in molded products and foam materials, resulting in an overall decline from the previous year.」
Responses such as product price revisions failed to keep pace with higher raw material prices for molded products and foam materials, and operating profit in the resin business declined 52.0% year on year. - FY2023-Q1MaterialisedAnnual report
「The company has periodically revised product prices to address continued increases in raw material prices, but these revisions have failed to keep pace with the increases, resulting in profit below the previous year.」
Higher raw material prices could not be fully offset by product price revisions and were reflected in a substantial year-on-year decline in operating profit in the resin business. - FY2022WorsenedAnnual report
「Although high-performance resins generated higher profit, profit from molded products and foam materials fell below the previous year as a result of higher raw material prices.」
The impact of higher raw material prices was reflected in full-year results as lower profit from molded products and foam materials. - FY2022-Q3MaterialisedAnnual report
「Although profit was affected by higher raw material costs, it exceeded the previous year as a result of higher sales.」
Although higher raw material costs actually affected profit in the resin business, higher sales enabled the company to secure profit above the same period of the previous year. - FY2022-Q2RestatedAnnual report
「Although profit was affected by higher raw material costs, it exceeded the previous year as a result of higher sales.」
Although the impact of higher raw material costs continues to be reflected in profit, higher sales enabled the company to secure profit above the previous year. - FY2022-Q1MaterialisedAnnual report
「Although profit was affected by higher raw material costs, it exceeded the previous year as a result of substantial sales growth.」
Higher raw material costs had an actual impact on profit in the resin business, while higher sales enabled the company to secure profit above the previous year. - FY2019WorsenedAnnual report
「During the consolidated fiscal year, Japan's economy saw capital investment remain firm against a backdrop of strong corporate earnings, while higher raw material prices, shortages of some materials and labor shortages continued to have an impact.」
Higher raw material prices, shortages of some materials and labor shortages continued, while higher prices for key raw materials and freight costs put downward pressure on profit in the resin business. - FY2019-Q3RestatedAnnual report
「Meanwhile, the company continues to be affected by higher raw material prices, shortages of some materials and labor shortages.」
Higher raw material prices and shortages of some materials continued to weigh on the business environment, and the resin business was unable to absorb higher costs, putting downward pressure on profit. - FY2019-Q2MaterialisedAnnual report
「Meanwhile, the company continued to be affected by higher raw material prices, shortages of some materials and labor shortages.」
Higher raw material prices and shortages of some materials continued, and the resin business was unable to absorb higher costs, resulting in lower operating profit. The impact of raw material price and supply shortage risks is being reflected in results. - FY2019-Q1MaterialisedAnnual report
「The company continued on a moderate growth trajectory, supported by expanding corporate earnings and IT investment, but continued to be affected by higher raw material prices, shortages of some materials and labor shortages.」
Higher raw material prices and shortages of some materials have emerged as actual impacts on the business environment. In the resin business, the company was unable to absorb higher raw material costs, which reduced profit. - FY2018MaterialisedAnnual report
「Although profit was affected by higher prices for key raw materials, the company reported a result above the previous consolidated fiscal year, supported by higher sales and various cost-reduction measures, including production and logistics efficiency improvements implemented in preparation for higher raw material prices.」
The company explains that higher prices for key raw materials actually put pressure on profit, while cost-reduction measures, including production and logistics efficiency improvements, contained the impact. - FY2018-Q3MaterialisedAnnual report
「Although higher prices for key raw materials put pressure on profit, profit increased substantially year on year as overall sales continued to grow and various cost-reduction measures, including production efficiency improvements implemented in preparation for higher raw material prices, and supply chain reforms proved effective.」
The company states that higher prices for key raw materials actually put pressure on profit, while production efficiency improvements, cost reductions and supply chain reforms absorbed the impact. - FY2018-Q2MitigatedAnnual report
「Profit increased substantially year on year as various cost-reduction measures, including production efficiency improvements implemented in preparation for higher raw material prices, and supply chain reforms proved effective.」
The company states that it advanced production efficiency improvements, cost reductions and supply chain reforms in preparation for higher raw material prices, and that these measures contributed to improved profit in the resin business. - FY2018-Q1MitigatedAnnual report
「Profit increased substantially year on year, driven not only by strong overall sales growth but also by various cost-reduction measures, including production efficiency improvements implemented in preparation for higher raw material prices.」
The company states that cost-reduction measures, including production efficiency improvements implemented in preparation for higher raw material prices, contributed to improved profit in the resin business. - FY2017-Q3RestatedAnnual report
「Exports and capital investment remained sluggish amid the continuation of yen appreciation through year-end and concerns over higher crude oil and material prices.」
Concerns over higher crude oil and material prices continue to be cited as business environment risks. - FY2016First statedAnnual report
「A high proportion of the Group's products consists of petroleum-derived products such as plastic valves. Because it is difficult to pass on increases in the prices of these materials to selling prices quickly if they exceed cost-reduction efforts, such increases could adversely affect the Group's performance and financial position.」
The risks identified include dependence on petroleum-derived products, difficulty passing higher raw material costs through to prices, and unexpected events, quality issues and supply shortages at suppliers.