Risks from Soaring Raw Material Prices and Procurement Issues
First written in FY2016. 6 of 13 entries say "Restated". Latest entry: FY2024.
The whole theme swung hardest in 2018: 3 of 15 companies on the "Worse" side.
12 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「Prices of the main raw materials used in the Group's products fluctuate depending on weather, natural disasters, market prices, economic conditions, fuel costs and foreign exchange rates.」
The company continues to identify surging raw material prices and procurement problems as ongoing risks, and presents measures including multiple sourcing, alternative materials, appropriate inventory levels, productivity improvements and passing costs on to selling prices. - FY2024-Q1MaterialisedAnnual report
「Revenue for the cumulative first quarter of the current consolidated fiscal year was ¥27,300 million, down 0.2% year on year, while business profit was ¥1,671 million, down 40.6% year on year, due to surging raw material costs and a decline in profit from investments accounted for under the equity method, among other factors.」
Surging raw material costs actually squeezed profit in the Other business, resulting in a 40.6% year-on-year decline in business profit. - FY2023RestatedAnnual report
「To mitigate risks arising from surging raw material prices and other factors, the Group is implementing various measures, including purchasing raw materials from multiple suppliers, securing alternative materials and appropriate inventory levels, and reducing costs through productivity improvements.」
The company continues to address surging raw material prices and procurement problems through measures including purchasing from multiple suppliers, alternative materials, appropriate inventory levels, productivity improvements and passing costs on to selling prices. - FY2022RestatedAnnual report
「To mitigate risks arising from surging raw material prices and other factors, the Group is implementing various measures, in principle, including purchasing raw materials from multiple suppliers, gathering information on market trends and other developments relating to raw materials, including upstream materials and feedstocks, securing alternative materials and appropriate inventory levels, and reducing costs through productivity improvements.」
The company continues to address surging raw material prices and procurement problems through purchasing from multiple suppliers, alternative materials, appropriate inventory levels, productivity improvements and passing costs on to selling prices. - FY2022-Q3WorsenedAnnual report
「Business profit was ¥7,398 million, down 31.6% year on year, due to surging raw material and transportation costs and a decline in profit from investments accounted for under the equity method, among other factors.」
Surging raw material and transportation costs, among other factors, squeezed profit in the Other business, resulting in a 31.6% year-on-year decline in business profit. - FY2022-Q2MaterialisedAnnual report
「Revenue for the cumulative second quarter of the current consolidated fiscal year was ¥82,668 million, up 11.9% year on year, while business profit was ¥6,093 million, down 25.1% year on year, due to surging raw material and transportation costs and a decline in profit from investments accounted for under the equity method, among other factors.」
Surging raw material and transportation costs actually squeezed profit in the Other business, and business profit fell 25.1% year on year despite higher revenue. - FY2022-Q1MaterialisedAnnual report
「Revenue for the cumulative first quarter of the current consolidated fiscal year was ¥39,048 million, up 8.9% year on year, while business profit was ¥2,432 million, down 39.9% year on year, due to the impact of surging raw material and transportation costs, among other factors.」
Surging raw material and transportation costs actually squeezed profit in the Other business, resulting in a 39.9% year-on-year decline in business profit. - FY2021MitigatedAnnual report
「In principle, the Group is establishing a framework for business continuity across the Group by diversifying suppliers through purchasing from multiple companies, securing alternative materials and appropriate inventory levels, and maintaining multiple production sites.」
The company specifies purchasing from multiple suppliers, alternative materials, appropriate inventory levels and multiple production sites as measures to address surging raw material prices and procurement problems. - FY2020RestatedAnnual report
「To mitigate risks related to surging raw material prices and other factors, the Group is implementing various measures, in principle, including purchasing raw materials from multiple suppliers, gathering information on market trends and other developments relating to raw materials, including upstream materials and feedstocks, securing alternative materials and appropriate inventory levels, and reducing costs through productivity improvements.」
The company continues to identify surging raw material prices and procurement problems as risks, and describes measures including purchasing from multiple suppliers, securing alternative materials and maintaining appropriate inventory levels. - FY2020-Q3RestatedAnnual report
「Although delays have occurred in procuring some imported materials, raw materials have generally been secured smoothly.」
The company states that delays in procuring some imported raw materials continue, but that supplies have generally been secured overall. - FY2020-Q1MaterialisedAnnual report
「Although delays have occurred in procuring some imported materials, raw materials have generally been secured smoothly.」
Delays in procuring some imported raw materials actually occurred amid the spread of COVID-19. - FY2017RestatedAnnual report
「The Group's policy is to address increases in raw material prices by passing them on to selling prices. However, if this cannot be done due to market conditions, negotiations with business partners or other factors, or if any procurement problem arises due to issues involving suppliers or other causes, this could have a material impact on the Group's operating results and financial condition.」
The company continues to disclose its policy of passing higher raw material prices on to selling prices, as well as the risk of failed negotiations and procurement problems. - FY2016First statedAnnual report
「The policy is to address increases in raw material prices by passing them on to selling prices. However, if this cannot be done due to market conditions, negotiations with business partners or other factors, or if any procurement problem arises due to issues involving suppliers or other causes, this could have a material impact on the Group's operating results and financial condition.」
The company explicitly identifies higher raw material costs and procurement difficulties resulting from weather, natural disasters, market prices, fuel costs and foreign exchange rates as risks.