Risk of Declining Inventory Profitability and Inventory Write-Down Losses
First written in FY2022. 3 of 9 entries say "Materialised", first in FY2023-Q2. Latest entry: FY2026.
Toho Chemical Industry moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 10 of 35 companies on the "Worse" side.
25 other companies' latest entry also says "Other".
- FY2026The impairment loss decreased but continued to arise at a subsidiaryAnnual report
「Inventory valuation loss (cost of sales) 472 409 In addition, operating profit declined year on year because Huai Ji Toho Chemical Co., Ltd., a consolidated subsidiary, incurred an inventory valuation loss due to falling market prices for raw materials.」
While the consolidated inventory valuation loss decreased from ¥472 million to ¥409 million, Huai Ji Toho Chemical Co., Ltd. incurred an inventory valuation loss due to falling raw-material prices, and the impact of the risk continued. - FY2025WorsenedAnnual report
「Inventory valuation loss (cost of sales): ¥472 million」
The inventory valuation loss was ¥472 million, up from ¥432 million in the previous consolidated fiscal year. The impact of the risk of lower profitability due to falling market prices and inventory stagnation has continued. - FY2023WorsenedAnnual report
「Inventory valuation loss (cost of sales): ¥391 million In addition, substantial product disposal losses and other expenses totaling approximately ¥300 million arose during the first and second halves of the year, becoming a negative factor for profit,」
The inventory valuation loss was ¥391 million, up from ¥351 million in the previous fiscal year. In addition, product disposal losses and other expenses of approximately ¥300 million arose during the full fiscal year, increasing the impact of losses from lower inventory and product profitability. - FY2023-Q3Product disposal losses confirmedAnnual report
「Segment profit fell by ¥84 million year on year to ¥522 million, partly because product disposal losses exceeding ¥100 million arose in the second quarter.」
Separately from the inventory valuation loss, product disposal losses exceeding ¥100 million arose in the Surfactants segment in the second quarter, reducing segment profit for the nine months ended the third quarter. - FY2023-Q2MaterialisedAnnual report
「In addition, the market price of rosin fell sharply from April 2022 as demand declined due to China’s zero-COVID policy, resulting in an inventory valuation loss at Huai Ji Toho Chemical Co., Ltd., the company’s consolidated subsidiary that uses rosin as a major raw material.」
The decline in demand resulting from China’s zero-COVID policy and the fall in rosin prices caused an inventory valuation loss at Huai Ji Toho Chemical Co., Ltd., which became a loss factor in the Chemicals segment. - FY2022First statedAnnual report
「Amounts recorded in the consolidated financial statements for the current consolidated fiscal year... Inventory valuation loss (cost of sales): ¥351 million」
The company identified the risk of inventory write-downs and valuation losses arising from falling market prices and inventory stagnation as a significant accounting estimate, and recorded an inventory valuation loss of ¥351 million during the current fiscal year. If market conditions deteriorate more than expected, additional losses may be recorded.