Risk of margin pressure from rising raw material prices in the school meals business
First written in FY2025. 2 of 3 entries say "Materialised", first in FY2026-H1. Latest entry: FY2026.
Medical System Network moved to the "Worse" side of this theme in 2025, 6 years after the typical company in this theme (2019).
The whole theme swung hardest in 2025: 7 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Although we worked to introduce fully prepared products to address the chronic labor shortage and improve profitability through price reviews and other measures, sales were ¥2,289 million, down 3.0% year on year, and operating loss was ¥18 million, compared with operating profit of ¥10 million in the same period of the previous year, due in part to increases in material and labor costs.」
Raw material and personnel costs actually increased, and the school meals business swung from operating profit in the previous year to an operating loss of ¥18 million. - FY2026-H1MaterialisedAnnual report
「Although we worked to introduce fully prepared products to address the chronic labor shortage and improve profitability through price reviews and other measures, sales were ¥1,161 million, down 1.4% year on year, and operating loss was ¥8 million, compared with an operating loss of ¥7 million in the same period of the previous year, due in part to increases in material and labor costs.」
Costs of materials actually increased in the school meals business and were cited as a factor behind the operating loss. - FY2025First statedAnnual report
「In addition, if higher procurement costs or other factors arise as a result of soaring raw material prices, this could affect our group’s performance.」
For the school meals business, the company separately identified higher procurement costs due to soaring raw material prices as a risk affecting performance, in addition to changes in medical and long-term care systems and sanitation incidents.