Uncertainty Over the Business Environment Due to the Intensifying Situation in Ukraine and Sharp Exchange-Rate Fluctuations
First written in FY2022-Q3. 2 of 10 entries say "Worsened", first in FY2022. Latest entry: FY2026-H1.
The whole theme swung hardest in 2025: 22 of 48 companies on the "Worse" side.
6 other companies' latest entry also says "Other".
- FY2026-H1Market recovery pauses, with conditions remaining firmAnnual report
「Although the post-COVID recovery in the domestic cosmetics market has levelled off, the market remains resilient due to the recovery in personal consumption and increased inbound demand resulting from the weaker yen.」
While the post-COVID market recovery has levelled off, the company describes the market environment as resilient, supported by the recovery in personal consumption and inbound demand. - FY2025ReframedAnnual report
「Our group is expanding overseas and aims to further increase overseas sales, including by beginning sales of 7 SKUs of DUO's The Cleansing Balm to consumers in China's general market from early July 2024. In these overseas operations, our products are sold and other transactions are conducted in foreign currencies. Accordingly, fluctuations in exchange rates may affect our group's operating results.」
In addition to conventional macroeconomic risks such as exchange rates and prices, the company has identified the direct impact of exchange rate fluctuations accompanying the expansion of overseas sales as a risk to operating results. - FY2025-H1Slowing market growth and increased thriftinessAnnual report
「Personal consumption recovered moderately as wage growth accelerated, but as households became more thrift-conscious amid high prices, signs of sluggish consumption were also seen in nondurable goods such as food. The domestic cosmetics market has also continued to grow moderately as the economy recovers, although growth has shown signs of slowing.」
The external environment includes greater household thriftiness due to high prices and slower growth in the domestic cosmetics market. - FY2024-Q3Expansion of the low-price marketAnnual report
「Meanwhile, the domestic cosmetics market has clearly become polarized since the COVID-19 pandemic, and the low-price segment has continued to expand.」
In the domestic cosmetics market, the low-price segment and market polarization are advancing alongside the recovery driven by increased opportunities to go out and inbound demand. - FY2024-Q2Consumer sentiment stagnates due to rising pricesAnnual report
「Although signs of a recovery in personal consumption were seen against the backdrop of economic recovery, consumer sentiment stagnated as prices rose. In the domestic cosmetics market, personal consumption recovered as opportunities to go out increased, and inbound demand also rose due to the weaker yen.」
The market recovery driven by increased opportunities to go out and inbound demand is described, while stagnating consumer sentiment due to rising prices is also noted, indicating the coexistence of recovery and external environmental risks. - FY2023Market recovery expectations coexist with external risksAnnual report
「The domestic cosmetics market is also continuing to recover as the reclassification of COVID-19 as a Class 5 infectious disease in May increased foot traffic in public places, with recovery continuing for both Japanese consumers and inbound visitors. However, as global monetary tightening and other factors continue, a downturn in overseas economies poses a risk of putting downward pressure on Japan's economy. Close attention must be paid to the effects of rising prices, supply-side constraints and fluctuations in financial and capital markets.」
The company reports a recovery in the domestic cosmetics market while remaining alert to monetary tightening, overseas economic conditions, prices, supply constraints and financial market volatility. - FY2023-Q3Recovery expectations coexist with external risksAnnual report
「The domestic cosmetics market is also expected to continue recovering as the requirement to wear masks was lifted in March and COVID-19 was reclassified as a Class 5 infectious disease in May, with more people seen without masks in public places. However, as global monetary tightening and other factors continue, a downturn in overseas economies poses a risk of putting downward pressure on Japan's economy. Close attention must be paid to the effects of rising prices, supply-side constraints and fluctuations in financial and capital markets.」
While forecasting a recovery in the domestic cosmetics market, the company continues to identify global monetary tightening, a downturn in overseas economies, rising prices, supply constraints and financial market volatility as external risks. - FY2023-Q1WorsenedAnnual report
「Price increases across a wide range of categories have become a drag on the full recovery of discretionary consumer goods, and a full recovery in the domestic cosmetics market is expected to take additional time.」
Price increases for various consumer goods are hindering the recovery in discretionary cosmetics consumption, indicating that a full recovery in the domestic cosmetics market is likely to be delayed. - FY2022WorsenedAnnual report
「Prices of electricity, gas, food and other products have risen due to the situation in Ukraine and the weaker yen, creating concerns about the impact on household finances. If surging prices cause consumer behavior to change sharply, the Group's business and performance may be affected.」
Price increases resulting from the situation in Ukraine and the weaker yen have emerged as specific risks to household finances and consumer behavior. - FY2022-Q3First statedAnnual report
「The environment remains highly uncertain due to surging global raw material prices, heightened tensions over Ukraine and sharp foreign-exchange movements, among other factors.」
Heightened tensions over Ukraine and sharp foreign-exchange movements are identified for the first time as factors contributing to uncertainty in the business environment. No specific impact on the company's performance is described.