Decline in the Chemicals Business profit margin due to an increase in purchased products
First written in FY2022-Q2. 5 of 9 entries say "Mitigated", first in FY2024-Q3. Latest entry: FY2026.
Muromachi Chemicals moved to the "Worse" side of this theme in 2022.
0 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The gross profit margin improved as sales of high-value-added ion-exchange resin products increased in the chemicals business.」
Growth in sales of high-value-added products indicates an improvement in the risk of margin deterioration caused by the previous mix of low-margin products. - FY2026-H1MitigatedAnnual report
「The cost ratio improved from the same period of the previous year because of a change in the product mix of purchased ion-exchange resin products.」
The change in the product mix of purchased products improved the chemicals business cost ratio year on year. - FY2024-Q3MitigatedAnnual report
「Operating profit was positive in the third quarter because the improvement in the cost ratio resulting from higher sales and a change in the sales mix exceeded the increase in selling expenses for strengthening sales activities.」
In the chemicals business, the cost ratio improved as the sales mix changed, resulting in positive operating profit in the third quarter. The cumulative operating loss also narrowed. - FY2023WorsenedAnnual report
「Profit margins declined because of lower factory utilization in the health foods business and changes in the product mix in the pharmaceutical and chemicals businesses.」
In addition to lower utilization in the health foods business, changes in the product mix in the pharmaceutical and chemicals businesses reduced the company's overall margin. - FY2023-Q2WorsenedAnnual report
「As a result, chemicals business revenue was ¥965.019 million, an increase of ¥8.790 million, or 0.9%, from the same period of the previous year, while the operating loss was ¥19.828 million, representing a deterioration of ¥24.596 million from the operating profit of ¥4.767 million recorded in the same period of the previous year.」
Although chemicals business revenue was roughly in line with the same period of the previous year, the business moved from operating profit to an operating loss, indicating further deterioration in profitability. - FY2022WorsenedAnnual report
「In the pharmaceutical and chemicals businesses, the proportion of product sales with lower margins than the company's manufactured and processed products increased, resulting in lower margins.」
The higher proportion of low-margin purchased and resale products was also evident for the full fiscal year. The chemicals business posted an operating loss of ¥15.803 million despite higher sales. - FY2022-Q2First statedAnnual report
「The overall profit margin declined as the proportion of purchased products, which have lower margins than the company's processed products, increased. As a result, chemicals business revenue was ¥956.228 million, an increase of ¥128.555 million, or 15.5%, from the same period of the previous year, while operating profit was ¥4.767 million, a decrease of ¥9.278 million, or 66.1%.」
The higher proportion of low-margin purchased products lowered the chemicals business margin, and operating profit fell 66.1% despite the increase in sales.