Risks from Raw Material Price Fluctuations and Procurement Delays
First written in FY2016. 17 of 32 entries say "Worsened", first in FY2018-Q3. Latest entry: 2026-08-07.
Achilles moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 34 of 53 companies on the "Worse" side.
11 other companies' latest entry also says "Restated".
- FY2026WorsenedAnnual report
「The business environment is expected to remain highly uncertain, with concerns over the impact of escalating tensions in the Middle East on the procurement environment for crude oil and naphtha, soaring energy prices, higher logistics costs, supply chain disruptions, and significant fluctuations in foreign exchange rates.」
Regarding the risk of raw material price fluctuations and procurement disruptions, the disclosure now explicitly includes, in addition to the previously identified risk of higher crude oil prices, the situation in the Middle East, naphtha procurement, energy and logistics costs, and supply chain disruptions. - FY2025RestatedAnnual report
「In recent years, difficult conditions have continued, including the impact of COVID-19, elevated and persistently high raw material prices and energy costs due to the situation in Ukraine and other factors, and declining volumes as the market weakened.」
Difficult business conditions, including persistently high raw material prices and energy costs and declining volumes, continue to be disclosed. - FY2025-H1RestatedAnnual report
「Operating income was affected by persistently high raw-material prices and energy costs and higher procurement costs resulting from the weaker yen. Although the Company worked to improve productivity and reduce expenses in response, it posted an operating loss of ¥449 million, compared with an operating loss of ¥519 million in the previous interim consolidated accounting period.」
Higher procurement costs resulting from persistently high raw material prices and energy costs and the weaker yen have continued, and an operating loss has been incurred despite the implementation of countermeasures. - FY2024WorsenedAnnual report
「Although profit benefited from price revisions implemented in response to persistently high raw material prices and energy costs and higher procurement costs resulting from the weaker yen, as well as from the earnings improvement effect of the weaker yen when translating overseas subsidiaries into yen, the decline in profit accompanying lower revenue resulted in an operating loss.」
Persistently high raw material prices and energy costs and higher procurement costs resulting from the weaker yen have continued to materialize in operating results as an operating loss even after measures such as price revisions were implemented. - FY2024-Q3WorsenedAnnual report
「In light of persistently high raw material prices and energy costs and changes in the recent automotive market environment, including overseas markets, the Company revised its assumptions regarding future sales volumes used in estimating the future profit and loss plan for the previous consolidated fiscal year. As a result, lower profitability was expected, and the Company determined that a short-term recovery would be difficult, recording an impairment loss as an extraordinary loss.」
Persistently high raw material prices and energy costs have led to a review of sales volumes, lower profitability and the recognition of an impairment loss, indicating that the impact of the risk on results is expanding. - FY2024-Q2WorsenedAnnual report
「Operating income was affected by higher raw-material prices and energy costs and by higher procurement costs resulting from the weaker yen. Although the Company worked to improve productivity and reduce expenses in response, it posted an operating loss of ¥519 million, compared with an operating loss of ¥102 million in the same quarter of the previous year.」
Higher procurement costs resulting from raw material prices, energy costs and the weaker yen have continued to materialize in operating results as an operating loss exceeding that of the same period of the previous year, despite countermeasures. - FY2024-Q1WorsenedAnnual report
「Operating income was affected by higher raw-material prices and energy costs and the weaker yen. Although the Company promoted further cost-reduction initiatives and price revisions in response, it posted an operating loss of ¥435 million, compared with an operating loss of ¥57 million in the same quarter of the previous year.」
The impact of higher raw material prices, energy costs and the weaker yen has continued to materialize in operating results as an operating loss even after countermeasures were implemented. The previously identified risk of rising raw material and logistics costs now explicitly includes higher energy costs. - FY2023WorsenedAnnual report
「Although net sales at the Company and its consolidated subsidiaries increased from the previous consolidated fiscal year due to price revisions and other factors, profit and loss deteriorated significantly because the increase was insufficient to absorb higher raw material prices and energy costs, resulting in significant tax loss carryforwards.」
Higher raw material prices and energy costs remained unabsorbed even after price revisions, resulting in an operating loss of ¥713 million, an ordinary loss of ¥117 million and a net loss of ¥1,204 million. - FY2023-Q3WorsenedAnnual report
「Although profit increased as sales remained strong, the increase was insufficient to offset higher energy, raw material and logistics costs due to delays in implementing price revisions. Segment profit therefore decreased by ¥201 million from the same quarter of the previous year to ¥1,860 million, down 9.8% year on year.」
Higher energy, raw material and logistics costs, compounded by delays in implementing price revisions, are increasingly affecting profit, including by reducing segment profit in the Plastics business by ¥201 million year on year. - FY2023-Q2RestatedAnnual report
「Segment profit decreased by ¥436 million from the same quarter of the previous year to ¥420 million, down 51.0% year on year, due to the impact of higher raw material and logistics costs and other factors.」
The disclosure continues to show that higher raw material and logistics costs are depressing segment profit in the Industrial Materials business. - FY2023-Q1WorsenedAnnual report
「Segment profit decreased by ¥243 million from the same quarter of the previous year to ¥202 million, down 54.6% year on year, due to the impact of higher raw material and logistics costs and other factors.」
Higher raw material and logistics costs emerged as factors reducing segment profit for the Industrial Materials business by ¥243 million, or 54.6% year on year. - FY2022WorsenedAnnual report
「Although gross profit benefited from generally strong sales at the Company and its consolidated subsidiaries, operating income remained weak because the adverse impact of higher raw material prices and increased selling, general and administrative expenses, including logistics costs, was significant.」
In addition to higher raw material prices, increased logistics costs continued to weigh on profit, and operating income decreased from ¥1,569 million in the previous year to ¥855 million. Price fluctuation risk has materialized in operating results. - FY2022-Q2WorsenedAnnual report
「Although Industrial Materials performed well, segment profit overall was ¥842 million, compared with ¥922 million in the same quarter of the previous year, due mainly to the impact of higher raw material prices and other factors.」
The impact of higher raw material prices emerged as a factor reducing segment profit for the Industrial Materials business from ¥922 million in the same quarter of the previous year to ¥842 million. - FY2022-Q1MaterialisedAnnual report
「The market for building and interior materials became unstable due to activity restrictions caused by the spread of the novel coronavirus and the wood shock, but sales remained strong, partly because of the effect of launching new patterns.」
The wood shock has materialized in the actual business environment as a factor destabilizing market conditions for building and interior materials. - FY2021RestatedAnnual report
「Sharp future changes in crude oil prices may cause fluctuations in the costs of these raw materials, affecting the Group’s operating results and financial condition. In addition, if a supplier’s operations are suspended due to a disaster or other event, or if the logistics network is disrupted, procurement of raw materials may be delayed, which may affect the Group’s operating results and financial condition.」
Fluctuations in the cost of raw materials, including crude oil prices, and procurement disruptions caused by supplier shutdowns and logistics network disruptions continue to be identified as risks. - FY2021-Q3RestatedAnnual report
「Operating income benefited from higher gross profit as overseas sales of films and other products remained strong, improved domestic gross profit due to lower raw material prices, and lower selling, general and administrative expenses resulting from lower logistics and travel costs, although」
The improvement in gross profit due to lower raw material prices continues to be disclosed, indicating that the impact of rising raw material prices, which had depressed profit through the previous fiscal year, has eased. - FY2021-Q2MitigatedAnnual report
「Operating income benefited from higher gross profit resulting from increased sales of films and other products overseas, improved domestic gross profit due to lower raw material prices, and lower selling, general and administrative expenses resulting from lower logistics costs and other factors, although」
The disclosure states that domestic gross profit improved in the current quarter due to lower raw material prices, whereas rising raw material prices had depressed profit through the previous fiscal year. - FY2020MitigatedAnnual report
「Although the gross margin improved mainly due to lower raw material prices, gross profit decreased by ¥584 million from the previous consolidated fiscal year to ¥16,699 million due to the impact of lower revenue.」
The disclosure states that, whereas rising raw material prices had depressed profit through the previous fiscal year, the gross margin improved in the current fiscal year due to lower raw material prices. - FY2019WorsenedAnnual report
「Gross profit decreased by ¥1,030 million from the previous consolidated fiscal year to ¥17,284 million, due to the impact of higher raw material prices and lower revenue.」
Higher raw material prices, together with lower revenue, reduced gross profit by ¥1,030 million and emerged as a factor behind the 40.2% year-on-year decline in operating income. - FY2019-Q3RestatedAnnual report
「Operating income decreased by ¥427 million from the same quarter of the previous year to ¥1,417 million, down 23.2% year on year, as the decline in gross profit resulting from lower revenue and the impact of higher raw material prices outweighed the decrease in selling, general and administrative expenses resulting from lower personnel expenses and other costs.」
Higher raw material prices, together with the decline in gross profit resulting from lower revenue, continue to emerge as factors reducing operating income. - FY2019-Q2WorsenedAnnual report
「Operating income decreased by ¥357 million from the same quarter of the previous year to ¥732 million, down 32.8% year on year, as the decline in gross profit resulting from lower revenue and the impact of higher raw material prices outweighed the decrease in selling, general and administrative expenses resulting from lower personnel expenses and other costs.」
Higher raw material prices, together with the decline in gross profit resulting from lower revenue, emerged as factors reducing operating income by ¥357 million, or 32.8% year on year. - FY2019-Q1WorsenedAnnual report
「Operating income decreased by ¥108 million from the same quarter of the previous year to ¥350 million, down 23.6% year on year, as the further increase in raw material prices accompanying the continued rise in crude oil prices outweighed the decrease in selling, general and administrative expenses resulting from lower personnel expenses and other costs.」
The increase in raw material prices accompanying the continued rise in crude oil prices emerged as a factor reducing company-wide operating income. In the Industrial Materials business, segment profit also decreased by ¥252 million year on year due to higher raw material prices and logistics costs. - FY2018WorsenedAnnual report
「Segment profit for the Industrial Materials business decreased by ¥460 million from the previous consolidated fiscal year to ¥2,067 million, down 18.2% year on year, mainly due to the impact of rising raw material prices and higher logistics costs.」
Rising raw material prices materialized as a factor reducing profit in the Industrial Materials business by ¥460 million, or 18.2%. - FY2018-Q3WorsenedAnnual report
「In addition, segment profit for the Industrial Materials business was significantly affected by rising raw material prices.」
The disclosure states that rising raw material prices significantly affected segment profit for the Industrial Materials business, providing greater specificity on how the risk affected results. - FY2017MaterialisedAnnual report
「As a result of these effects, exchange rates remained unstable, while raw material prices, including crude oil, began to rise again, and the uncertain business environment continued.」
The shift to higher prices for crude oil and other raw materials is described as an event that actually emerged in the business environment during the fiscal year. - FY2017-Q3MaterialisedAnnual report
「The company also faced a difficult business environment as crude oil prices began to rise again and exchange rates fluctuated sharply.」
The shift to higher crude oil prices has materialized in the business environment during the current quarter, and the price fluctuations underlying the raw material price fluctuation risk are described. - FY2016First statedAnnual report
「Sharp future changes in crude oil prices may cause fluctuations in the costs of these raw materials, affecting the Group’s operating results and financial condition. In addition, if a supplier’s operations are suspended due to a disaster or other event, or if the logistics network is disrupted, procurement of raw materials may be delayed, which may affect the Group’s operating results and financial condition.」
In addition to price fluctuations for petrochemical products and other materials, procurement disruptions caused by supplier shutdowns and logistics network disruptions are identified.