Increase in Inventories and Risk of Inventory Valuation Losses
First written in FY2023. 4 of 11 entries say "Worsened", first in FY2024. Latest entry: 2026-10-14.
Daito Pharmaceutical moved to the "Worse" side of this theme in 2024, 2 years before the typical company in this theme (2026).
The whole theme swung hardest in 2023: 3 of 8 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- FY2026MitigatedAnnual report
「Selling, general and administrative expenses increased, mainly due to higher R&D expenses and fees paid, but inventory write-downs improved substantially, resulting in operating income of ¥1,627 million, up 10.6% year on year.」
The Company stated in its full-year results that the inventory write-downs associated with the risk that emerged in the previous fiscal year improved substantially and became a factor behind the increase in profit. - FY2026-H1MitigatedAnnual report
「Selling, general and administrative expenses increased, mainly due to higher R&D expenses and fees paid, but inventory write-downs improved substantially, resulting in operating income of ¥1,627 million, up 10.6% year on year.」
Inventory write-downs improved substantially and became a factor behind the increase in operating income. The Company stated that the impact on earnings of the inventory write-down risk that emerged in the previous fiscal year was reduced in the interim period. - FY2025WorsenedAnnual report
「As a result, revenue for the consolidated fiscal year was ¥50,643 million, up 8.0% year on year. Although the increase in revenue led to higher profit, operating profit fell 32.7% year on year to ¥2,619 million, mainly due to higher depreciation expense, changes in the product mix and an increase in inventory write-downs for long-outstanding inventory.」
Although the inventory balance declined to ¥18,414 million, the increase in write-downs on long-outstanding inventory emerged as a factor behind the decline in operating income in full-year earnings. - FY2025-H1MaterialisedAnnual report
「Although net sales increased, operating income was ¥1,471 million, down 35.7% year on year, mainly due to higher depreciation and amortisation, the impact of inventory valuation and increased raw-material costs resulting from higher raw-material prices caused by the weaker yen.」
The impact of inventory valuation emerged as a factor behind the decline in profit, and the Company stated that the inventory growth and write-down risk affected earnings. - FY2024WorsenedAnnual report
「Merchandise and finished goods 7,877 Work in process 5,948 Raw materials and supplies 7,065 Total 20,891」
The inventory balance increased from ¥18,239 million in the previous fiscal year to ¥20,891 million. The Company continued to disclose inventory growth associated with market expansion and efforts to secure a stable supply of raw materials from overseas, as well as the possibility of additional write-downs. - FY2023First statedAnnual report
「As a result of responding to the expansion of the generic drug market and the need to secure a stable supply of raw materials from overseas, the balance of inventories and the number of items handled by our Group have continued to increase. Additional inventory write-downs may arise in the consolidated financial statements for the following consolidated fiscal year and thereafter.」
Inventories amounted to ¥18,239 million, including an inventory write-down of ¥539 million in cost of sales. Against the backdrop of inventory growth associated with market expansion and efforts to secure a stable supply of raw materials, the Company identified the possibility of additional write-downs as a new risk.