Strengthening Cost Competitiveness through the Streamlining of Raw Materials, Manufacturing Processes and Inventory
First written in FY2016. 15 of 36 entries say "Worsened", first in FY2018-Q3. Latest entry: 2026-08-06.
Sun A.Kaken moved to the "Worse" side of this theme in 2018.
The whole theme swung hardest in 2022: 1 of 10 companies on the "Worse" side.
9 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The company is pursuing appropriate product pricing, rationalization including the consolidation and closure of facilities, productivity improvements and cost reductions to improve its earnings base.」
The company continues to pursue appropriate pricing, facility consolidation and closure, productivity improvements and cost reductions, achieving a return to profitability in the industrial materials division as a result of these measures. - FY2026-H1Review of low-price, low-margin productsAnnual report
「Sales of packaging materials for daily necessities and other products declined, resulting in lower revenue, as the company reviewed low-price, low-margin products with the aim of improving profitability.」
In addition to the previous rationalization and price pass-through, the company implemented a review of low-price, low-margin products as a specific measure to improve profitability. Sales volumes and revenue declined. - FY2025Accelerating rationalization and price increasesAnnual report
「Under these circumstances, the group is advancing activities to secure profits, including rationalization centered on the consolidation and closure of facilities and product price increases.」
The company is pursuing rationalization centered on the consolidation and closure of facilities and product price increases as measures to secure profits, and states that it will accelerate these activities to transition to a low-cost structure at an early stage. - FY2025-H1AdvancedAnnual report
「Revenue increased mainly because orders in the functional materials segment remained strong and price pass-through was advanced, while operating profit returned to positive territory.」
Advancing price pass-through was cited as a factor behind higher revenue and the return of operating profit to positive territory, indicating concrete progress in responding to rising costs. - FY2024-Q3AdvancedAnnual report
「Under these circumstances, the group's earnings showed an improving trend in profitability as the decline in orders in the functional materials segment appeared to have bottomed out and price pass-through progressed. However, the company was unable to fully offset the surging costs, including persistently high raw material costs, and therefore remained in an operating loss.」
Profitability improved as price pass-through progressed. However, the company did not reach the point of fully absorbing higher costs, including persistently high raw material costs, and the operating loss remains. - FY2024-Q2WorsenedAnnual report
「In terms of earnings, the delay in passing through increases in raw material and electricity and fuel costs, together with the higher fixed-cost burden resulting from lower production volumes, resulted in an operating loss.」
The delay in passing through higher costs and the increased fixed-cost burden resulting from lower production volumes contributed to the operating loss, and pressure on cost rationalization and profitability improvement continues. - FY2024-Q1AdvancedAnnual report
「The company secured an operating profit due to higher sales in the light packaging materials segment, centered on food packaging materials, and progress in production rationalization. As a result, the group reported revenue of ¥7,242 million, up 0.5% year on year, and operating profit of ¥42 million, up 21.6%.」
The company explained that progress in production rationalization contributed to securing an operating profit, which increased 21.6% year on year. The effects of the rationalization initiatives were reflected in earnings. - FY2023RestatedAnnual report
「In terms of profitability, following the integration in April of the sales division of consolidated subsidiary シノムラ化学工業株式会社 into the company, the group will pursue cost reductions and sales synergies. At the same time, within the consolidated group, it will focus on optimizing the production structure to improve profitability and eliminate segment losses.」
The company indicates a continuing policy of improving profitability through sales-division integration, cost reductions, sales synergies and optimization of the production structure. - FY2023-Q3WorsenedAnnual report
「In terms of earnings, the company was unable to keep pace with passing through increases in raw material and electricity and fuel costs, and was significantly affected by lower sales in the functional materials segment, resulting in a loss.」
The company was unable to fully pass through increases in raw material and electricity and fuel costs to selling prices, while lower functional materials sales also contributed to the loss. The situation in which rationalization and pricing measures fail to absorb costs continues. - FY2023-Q2WorsenedAnnual report
「In terms of earnings, the company was unable to fully pass through to selling prices the increase in manufacturing costs resulting from persistently high crude oil prices and soaring raw material prices and electricity and fuel costs. This coincided with a higher fixed-cost ratio due to lower sales volumes in the functional materials segment, resulting in an operating loss.」
The company was unable to sufficiently pass through increases in raw material and electricity and fuel costs to selling prices, while a higher fixed-cost ratio due to lower functional materials sales volumes also contributed to the operating loss. The situation indicates that cost rationalization and pricing measures were insufficient to absorb the increase in expenses. - FY2023-Q1WorsenedAnnual report
「In terms of earnings, persistently high crude oil prices sharply increased raw material prices and electricity and fuel costs, substantially raising costs. Although the company is pursuing pass-through to selling prices and production rationalization in response, these measures were insufficient to offset the increase fully, and operating profit declined.」
Although the company is pursuing pass-through to selling prices and production rationalization, it was unable to absorb the full increase in raw material prices and electricity and fuel costs caused by high crude oil prices, and pressure on cost competitiveness and profitability has again emerged in the results. - FY2022WorsenedAnnual report
「In terms of earnings, the impact of surging crude oil prices from the second half onward has pushed up raw material prices and weighed on profitability. However, operating profit increased as the company steadily captured firm demand in the first half.」
Surging crude oil prices pushed up raw material prices and weighed on profitability, a situation explicitly identified for the full fiscal year. The policy of rationalization and cost reduction continues, but the cost environment has deteriorated. - FY2022-Q3WorsenedAnnual report
「In terms of earnings, rising raw material prices, including those resulting from surging crude oil prices, have begun to weigh on profitability. However, the company is working to secure profits by further improving production efficiency and reviewing selling prices.」
While higher raw material prices have begun to emerge as a factor weighing on profitability, the company is advancing production efficiency improvements and a review of selling prices. Continued rationalization is indicated, but no new achievement milestone is stated. - FY2022-Q2AdvancedAnnual report
「In terms of earnings, although raw material costs were trending upward, the increase was absorbed through higher production volumes and progress in rationalization. The contribution from シノムラ化学工業株式会社's results also resulted in higher operating profit, ordinary profit and quarterly net income attributable to owners of the parent.」
The company explained that higher production volumes and progress in rationalization absorbed rising costs amid higher raw material costs, with the effects of the rationalization initiatives reflected in higher profits. - FY2022-Q1AdvancedAnnual report
「In terms of earnings, operating profit, ordinary profit and net income attributable to owners of the parent all increased due to improved profitability in the industrial materials segment, lower raw material costs and rationalization efforts including expense reductions. As a result, following the application of the Accounting Standard for Revenue Recognition, the group reported revenue of ¥7,460 million, operating profit of ¥398 million, up 117.2% year on year, ordinary profit of ¥452 million, up 96.9%, and quarterly net income attributable to owners of the parent of ¥305 million, up 89.7%.」
Rationalization efforts, including lower raw material costs and expense reductions, were explicitly identified as factors driving higher profits in the first quarter, with operating profit increasing 117.2% year on year. - FY2021AdvancedAnnual report
「In terms of earnings, operating profit increased due to production rationalization, restrained overhead spending and lower raw material costs.」
Production rationalization, restrained overhead spending and lower raw material costs became realized drivers of higher operating profit, with company-wide operating profit increasing 238.1% year on year. - FY2021-Q3Profit improvement through lower raw material costsAnnual report
「In terms of earnings, operating profit and ordinary profit increased due to lower raw material costs, improved profitability in the industrial materials segment and a reduction in equity-method investment losses, among other factors.」
In connection with the previous rationalization initiatives, lower raw material costs were cited as a factor improving operating profit and ordinary profit. - FY2021-Q1Offsetting through restrained overhead spendingAnnual report
「Meanwhile, in terms of earnings, the increase in the sales mix of highly profitable products and restraint on expenses associated with suspended sales activities offset the decline in earnings caused by lower sales, enabling operating profit to remain at approximately the same level as in the previous fiscal year.」
Separate from the previous rationalization of raw materials, manufacturing processes and inventories, restraint of overhead spending associated with curtailing sales activities was cited as a measure to offset the decline in profitability caused by lower revenue. - FY2020WorsenedAnnual report
「The planned consolidation of production facilities, which was originally scheduled for completion during the period, was delayed, preventing progress in reducing overall manufacturing costs.」
The consolidation of production facilities did not proceed as planned, and manufacturing cost reductions failed to advance. The report also cites higher unit costs resulting from lower plant utilization due to the decline in orders. - FY2020-Q3WorsenedAnnual report
「In terms of earnings, lower plant utilization resulting from the decline in orders raised unit product costs, resulting in lower profits year on year.」
Lower plant utilization accompanying the decline in orders led to higher unit product costs, and pressure on costs and profitability continues. - FY2020-Q2WorsenedAnnual report
「In terms of earnings, lower plant utilization resulting from the decline in orders raised unit product costs, resulting in lower profits year on year.」
Lower plant utilization due to the decline in orders led to higher unit product costs, and pressure on costs and profitability continues. - FY2020-Q1WorsenedAnnual report
「In terms of earnings, the decline in orders for major products in the light packaging materials segment and the increase in the volume of purchased products handled lowered the profit margin, resulting in lower profits.」
The decline in orders for major products and the increase in the volume of purchased products handled lowered the profit margin, worsening conditions surrounding the previous theme of improving costs and profitability. - FY2019WorsenedAnnual report
「Operating profit for the consolidated fiscal year was ¥326 million, a 72.8% year-on-year decline. A factor common to all segments was the increase in raw material costs resulting from higher prices for resins, plastic film and other materials due to the rise in crude oil prices.」
The increase in raw material costs resulting from higher crude oil prices became a common factor reducing operating profit across all segments, worsening the previous trend of improvement through cost rationalization. - FY2019-Q3WorsenedAnnual report
「In terms of earnings, the decline in operating profit widened as lower sales coincided with higher raw material costs and a lower sales mix of relatively high-margin products, among other factors.」
Higher raw material costs coincided with a lower sales mix of high-margin products, widening the decline in operating profit. Pressure on cost competitiveness and profitability continues. - FY2019-Q2WorsenedAnnual report
「In terms of earnings, the decline in profits widened as several factors coincided, including higher raw material costs following the rise in crude oil prices, only partial pass-through to selling prices, and a lower sales mix of relatively high-margin products.」
Only part of the increase in raw material costs was passed through to selling prices, increasing pressure on cost competitiveness and profitability. - FY2019-Q1WorsenedAnnual report
「In terms of earnings, profits declined due not only to factors related to lower revenue but also to higher raw material costs resulting from the rise in crude oil prices.」
The increase in raw material costs resulting from higher crude oil prices has actually emerged as a factor reducing profits, rather than as the cost-reduction factor seen previously. - FY2018RestatedAnnual report
「At the same time, we will implement thorough cost reductions and work to strengthen our price competitiveness and profitability.」
Thorough cost reduction has been reaffirmed as an ongoing initiative. However, rising raw material costs weighed on earnings during the period, and the initiative itself contains no new achievement milestone. - FY2018-Q3WorsenedAnnual report
「Under these circumstances, the earnings of the group began to show signs of slowing profitability due to the cost burden of the new factory completed in the previous fiscal year and higher raw material costs. However, supported by strong orders for functional materials, the group maintained an overall trend of higher revenue.」
Raw material costs rose and shifted from being a conventional cost-reduction factor to a factor weighing on profitability. Although orders for functional materials supported higher revenue, signs of slowing profitability have emerged. - FY2017-Q3RestatedAnnual report
「In terms of earnings, new depreciation expenses arose following the start of operations at the new Kakegawa Factory WEST and the R&D Center, the new hub for research and development activities. However, profits increased on higher sales of functional materials and the sustained low level of raw material costs.」
The sustained low level of raw material costs continues to be cited as a factor driving higher profits. - FY2017-Q2RestatedAnnual report
「In terms of earnings, depreciation expenses began during the period following the completion of the new Kakegawa Factory WEST and the R&D Center, the new hub for research and development activities. However, substantially higher profits were achieved through the sustained low level of raw material costs and improved profitability in functional materials.」
The sustained low level of raw material costs continues to be cited as a factor improving profitability. - FY2016First statedAnnual report
「The sustained decline in crude oil prices and a review of material selection reduced raw material costs, including those for resin and plastic film, across all business divisions. In addition, cost savings from rationalization initiatives, including reviews of manufacturing processes at each production site, reductions in raw material losses and lower inventory holding costs, resulted in substantial improvement in earnings.」
The company cites material selection, process reviews, reductions in raw material losses and lower inventory holding costs as specific measures.