Political Instability, Labor Issues, and Social Unrest in Overseas Operations
First written in FY2017. 7 of 18 entries say "Worsened", first in FY2022-Q2. Latest entry: FY2027-H1.
Nippon Shikizai moved to the "Worse" side of this theme in 2020, 2 years before the typical company in this theme (2022).
The whole theme swung hardest in 2024: 11 of 19 companies on the "Worse" side.
14 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Although there were signs of movement toward a temporary resolution in the situation in the Middle East, concerns have emerged that it could become protracted. Together with the continued Russian invasion of Ukraine and worsening relations with China, geopolitical risks are expected to remain elevated for the time being.」
Additional risks surrounding the overseas business related to political and social instability were described, including concerns over a protracted situation in the Middle East and worsening relations with China. - FY2026-H1WorsenedAnnual report
「In Europe, orders for both pharmaceuticals and cosmetics remained weak. ... Revenue declined in both euro terms and after conversion into yen, falling 11.8% year on year to ¥2,338 million. In terms of profit, in addition to the decline in revenue and higher labor and other costs, delays in the start-up of some new equipment at THEPENIER and low operating levels at Nippon Color & Cosmetics France resulted in an operating loss of ¥83 million, compared with an operating loss of ¥13 million in the same period of the previous year.」
In the European business, weak orders, higher prices and labor costs, delays in the start-up of new equipment, and low operating levels at the French subsidiary combined to expand the operating loss. - FY2025-Q1WorsenedAnnual report
「Profit was affected by lower euro-denominated revenue and higher personnel and other costs, resulting in an operating loss of ¥54 million, compared with operating profit of ¥118 million in the same period of the previous year.」
Against a backdrop of a sluggish European economy, a slowdown in the pace of order recovery, and soaring labor and other costs, the deterioration in the French business's performance has emerged as an actual operating loss. - FY2023The French business recorded higher revenue and higher profit despite ongoing external headwinds.Annual report
「In Europe, where subsidiaries THEPENIER PHARMA & COSMETICS S.A.S. and Nippon Color & Cosmetics France are located, the Company continued to be significantly affected by COVID-19 and Russia's invasion of Ukraine during the consolidated fiscal year under review, January to December. However, Europe was ahead in lifting infection-control measures such as mask-wearing as part of a lifestyle with COVID-19, and orders began to recover. In addition, Nippon Color & Cosmetics France was newly included in the scope of consolidation, resulting in revenue increasing 43.3% year on year to ¥3,155 million.」
Although the impact of infectious disease and Russia's invasion of Ukraine continued, revenue in France increased 43.3% due to the recovery in orders and the expanded scope of consolidation. - FY2023-Q3The French business returned to profitability despite ongoing external headwinds.Annual report
「In terms of profit, although the Company was affected by an increase in various expenses associated with capital investment, higher energy and other prices due to Russia's invasion of Ukraine, and logistics delays, it recorded operating profit of ¥30 million, compared with an operating loss of ¥15 million in the same period of the previous year.」
Although the impact of higher energy prices and logistics delays associated with Russia's invasion of Ukraine continued, the French business changed from an operating loss in the same period of the previous year to operating profit. - FY2023-Q2RestatedAnnual report
「In terms of profit, in addition to an increase in various expenses associated with capital investment, the Company was affected by higher energy and other prices due to Russia's invasion of Ukraine and logistics delays, resulting in an operating loss of ¥27 million, compared with an operating loss of ¥31 million in the same period of the previous year.」
The French business continues to be affected by higher energy prices and logistics delays associated with Russia's invasion of Ukraine, but its operating loss narrowed slightly from the same period of the previous year. - FY2023-Q1WorsenedAnnual report
「Profit was affected not only by higher expenses associated with capital investment but also by surging energy and other prices and logistics delays resulting from Russia's invasion of Ukraine, resulting in an operating loss of ¥85 million, compared with an operating loss of ¥59 million in the same period of the previous year.」
In the overseas business, the impact of higher energy prices and logistics delays associated with Russia's invasion of Ukraine has emerged as an expansion of the operating loss in the French business. - FY2022WorsenedAnnual report
「In Europe, where subsidiary THEPENIER is located, the economy remained sluggish during the consolidated fiscal year under review, January to December, due to the spread of COVID-19. THEPENIER was affected in both its pharmaceuticals and cosmetics businesses, and revenue declined 7.2% year on year to ¥2,201 million. In terms of profit, the decline in revenue and an increase in various expenses associated with capital investment resulted in operating profit falling 85.7% year on year to ¥17 million.」
In the overseas business, France-based THEPENIER recorded lower revenue, and operating profit also declined substantially. - FY2022-Q3WorsenedAnnual report
「THEPENIER's revenue also fell substantially to ¥1,483 million, down 19.5% from the same period of the previous year, including the previous year's first quarter, January–March 2020, which was largely unaffected by COVID-19. Profit was also affected by higher expenses associated with capital investment in addition to the substantial revenue decline, resulting in an operating loss of ¥15 million, compared with operating profit of ¥149 million in the same period of the previous year.」
The French operations recorded a substantial decline in revenue and an operating loss due to the impact of infectious disease, and the impact of infectious disease and social disruption on the overseas business is worsening. - FY2022-Q2WorsenedAnnual report
「THEPENIER's revenue also fell substantially to ¥1,019 million, down 26.0% from the same period of the previous year, including the previous year's first quarter, January–March 2020, which was largely unaffected by COVID-19. Profit was also affected by higher expenses associated with capital investment in addition to the substantial revenue decline, resulting in an operating loss of ¥31 million, compared with operating profit of ¥145 million in the same period of the previous year.」
The impact of infectious diseases and social disruption on the overseas business further materialized as a substantial decline in revenue and an operating loss at the French operations. - FY2022-Q1MaterialisedAnnual report
「THEPENIER's revenue also fell sharply, down 33.4% year on year to ¥476 million, compared with the same period of the previous year, January to March 2020, which was largely unaffected by COVID-19. In terms of profit, in addition to the substantial decline in revenue, various expenses associated with capital investment increased, resulting in an operating loss of ¥59 million, compared with operating profit of ¥73 million in the same period of the previous year.」
The risk of infectious disease outbreaks and social disruption in the overseas business materialized as a substantial decline in revenue and an operating loss at the French operations. - FY2021RestatedAnnual report
「These overseas business activities are exposed to risks including unforeseen economic and political instability, labor issues, the outbreak of terrorism or war, and social disruption caused by infectious disease outbreaks.」
The risks of political, labor, security and infectious disease-related social disruption associated with overseas expansion have been reconfirmed. - FY2021-Q2RestatedAnnual report
「The Group was significantly affected overall, including a temporary sharp decline in factory utilization at its French operations due to the impact of government-imposed lockdowns and other measures.」
The risk of infectious disease outbreaks and social disruption in the overseas business has been reconfirmed, including the decline in factory utilization associated with the lockdown at the French operations. - FY2021-Q1MaterialisedAnnual report
「The Tepnier Company was also forced to temporarily suspend operations on its cosmetics production line from 23 March (operations resumed on 16 April),」
The risk of social disruption caused by infectious disease outbreaks in the overseas business actually materialized as the temporary suspension of the cosmetics production line at the French subsidiary. - FY2018RestatedAnnual report
「These overseas operations entail potential risks, including unforeseen economic and political instability, labor issues, terrorism or war, and social disruption caused by infectious diseases.」
The Company continues to cite political, labor, national security and infectious disease risks associated with expanding operations in Europe, North America and Asia. - FY2017First statedAnnual report
「These overseas operations entail potential risks, including unforeseen economic and political instability, labor issues, terrorism or war, and social disruption caused by infectious diseases.」
The Company identifies political, labor, security and infectious-disease risks associated with expanding overseas operations in France, Europe and the Asia-Pacific region.