Increase in cost due to declining inventory profitability
First written in FY2019-Q3. 10 of 22 entries say "Mitigated", first in FY2020-Q3. Latest entry: 2026-08-06.
Pacific Metals moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 37 companies on the "Worse" side.
41 other companies' latest entry also says "Worsened".
- 2026-08-06WorsenedRevision of earnings forecasts
「In other areas, inventory write-downs are expected to be additionally recorded in the first half, while the second half is expected to see a reversal resulting from a reduction in the write-downs. As in the previously announced plan, profit and loss trends are expected to differ between the first and second halves.」
The company assumes that additional inventory write-downs will be recorded in the first half, again highlighting the risk of higher costs due to declining profitability. - FY2026MitigatedAnnual report
「Write-downs in the carrying value of inventories held for ordinary sales purposes due to lower profitability (a negative figure represents a reversal) were as follows: cost of sales, negative ¥2,275 million.」
Inventory carrying-value write-downs were reversed for the second consecutive fiscal year, with the reversal decreasing from ¥2,626 million to ¥2,275 million. - FY2026-H1MaterialisedAnnual report
「As a result, consolidated results for the interim consolidated accounting period were revenue of ¥4,463 million, a 43.0% year-on-year decline. In terms of earnings, although inventory carrying-value write-downs were recognized, cost of sales decreased and the operating loss was ¥4,042 million (operating loss of ¥4,468 million in the previous interim consolidated accounting period).」
Inventory carrying-value write-downs were recognized again in the interim period, and the risk of higher costs due to lower profitability materialized. Meanwhile, cost of sales decreased from the previous interim period. - FY2025MitigatedAnnual report
「Write-downs in the carrying value of inventories held for ordinary sales purposes due to lower profitability (a negative figure represents a reversal) were as follows: cost of sales, negative ¥2,626 million.」
Inventory carrying-value write-downs turned into a ¥2,626 million reversal from the ¥982 million write-down in the previous fiscal year, easing the risk of higher costs due to lower profitability. - FY2025-H1MitigatedAnnual report
「Although cost of sales decreased following the recognition of a reversal of inventory carrying-value write-downs, the impact of lower revenue was greater, resulting in an operating loss of ¥4,468 million (operating loss of ¥6,194 million in the previous interim consolidated accounting period).」
The reversal of inventory carrying-value write-downs reduced cost of sales, narrowing the operating loss compared with the previous interim period. - FY2024MitigatedAnnual report
「Write-downs in the carrying value of inventories held for ordinary sales purposes due to lower profitability (a negative figure represents a reversal) were ¥982 million in cost of sales for the fiscal year.」
Write-downs in the carrying value of inventories decreased from ¥8,905 million in the previous fiscal year to ¥982 million. However, higher costs due to lower profitability continued to occur. - FY2024-Q3RestatedAnnual report
「As for other factors, write-downs in the carrying value of inventories are expected to be additionally recognized in the first half, while a reduction in the write-down amount in the second half is expected to result in a reversal. Accordingly, earnings trends are expected to differ between the first and second halves.」
The outlook has been reaffirmed that write-downs in the carrying value of inventories were additionally recognized in the first half, while a reduction in the write-down amount and a reversal are expected in the second half. - FY2024-Q2Additional recognition in the first half, with a reduction and reversal expected in the second halfAnnual report
「As for other factors, write-downs in the carrying value of inventories are expected to be additionally recognized in the first half, while a reduction in the write-down amount in the second half is expected to result in a reversal. Accordingly, earnings trends are expected to differ between the first and second halves.」
The filing states that write-downs in the carrying value of inventories were additionally recognized in the first half, while a reduction in the write-down amount and a reversal are expected in the second half. - FY2024-Q1MaterialisedAnnual report
「In terms of earnings, in addition to the decline in revenue, factors including an increase in cost of sales resulting from the recognition of write-downs due to lower inventory profitability led to an operating loss of ¥3,292 million (operating profit of ¥1,509 million in the same quarter of the previous year).」
Write-downs due to lower inventory profitability were recognized again, contributing to the operating loss through an increase in cost of sales. - FY2023WorsenedAnnual report
「Write-downs in the carrying value of inventories held for ordinary sales purposes due to lower profitability (a negative figure represents a reversal) were ¥8,905 million in cost of sales for the fiscal year.」
Write-downs in the carrying value of inventories due to lower profitability increased substantially, from ¥56 million in the previous fiscal year to ¥8,905 million. - FY2023-Q3WorsenedAnnual report
「In terms of earnings, in addition to the decline in revenue, factors including an increase in cost of sales resulting from the recognition of write-downs due to lower inventory profitability led to an operating loss of ¥6,718 million (operating profit of ¥2,506 million in the same quarter of the previous year).」
Write-downs due to lower inventory profitability continued to push up cost of sales and, together with the decline in revenue, contributed to the ¥6,718 million operating loss. - FY2023-Q2MaterialisedAnnual report
「In terms of earnings, in addition to the decline in revenue, factors including an increase in cost of sales resulting from the recognition of write-downs due to lower inventory profitability led to an operating loss of ¥4,464 million (operating profit of ¥952 million in the same quarter of the previous year).」
Write-downs due to lower inventory profitability were recognized again, contributing to the ¥4,464 million operating loss through an increase in cost of sales. - FY2022MaterialisedAnnual report
「For inventory held for ordinary sale, the inventory write-down due to lower profitability, with a negative amount representing a reversal, was ¥56 million in cost of sales for the current consolidated fiscal year.」
The ¥56 million inventory write-down due to lower profitability represented a reversal from the write-down reversal recorded in the previous fiscal year. - FY2021-Q3MitigatedAnnual report
「The operating loss was ¥365 million, including partial reversals of inventory write-downs recognized in the previous consolidated fiscal year due to lower inventory profitability, compared with an operating profit of ¥1,336 million in the same quarter of the previous year.」
Part of the inventory write-down recognized in the previous fiscal year was reversed, partially mitigating the factor of higher costs due to lower profitability, but an operating loss remained. - FY2021-Q2MitigatedAnnual report
「At the end of the previous consolidated fiscal year, inventory carrying values were written down due to lower profitability, but by the end of the second quarter of the current consolidated fiscal year, the write-downs had been reversed as profitability improved.」
Inventory carrying values written down at the end of the previous fiscal year due to lower profitability were reversed by the end of the second quarter of the current fiscal year as profitability improved. - FY2021-Q1MitigatedAnnual report
「In terms of pricing, the LME nickel price applied by the company, which serves as the benchmark for determining the sales prices of its ferronickel products, is expected to rise gradually as demand recovers against the backdrop of the phased reopening of economies in various countries, despite concerns about the sustainability of the economic recovery. As a result, part of the inventory write-down recognized in the previous consolidated fiscal year is expected to be reversed, which is expected to reduce cost of sales.」
Against the backdrop of a gradual rise in LME prices, part of the inventory write-down recognized in the previous fiscal year is expected to be reversed, reducing the risk of lower profitability. - FY2020WorsenedAnnual report
「Higher cost of sales and other factors resulted from the recognition of a ¥2,461 million inventory write-down due to lower inventory profitability.」
The inventory write-down increased from ¥309 million in the previous fiscal year to ¥2,461 million, contributing to an operating loss of ¥1,879 million. - FY2020-Q3MitigatedAnnual report
「Operating profit was ¥1,336 million, compared with an operating loss of ¥732 million in the same quarter of the previous year, partly due to the reversal of inventory write-downs accompanying improved inventory profitability and other factors.」
Inventory write-down reversals resulted from improved inventory profitability, mitigating in the cumulative period through the current quarter the risk of lower profitability that had contributed to the operating loss in the previous year. - FY2020-Q1MaterialisedAnnual report
「From a profit and loss perspective, lower inventory profitability was also a factor contributing to higher costs, and the operating loss was ¥991 million, compared with an operating profit of ¥1,155 million in the same quarter of the previous year.」
Lower inventory profitability contributed to higher costs and affected the change from an operating profit in the previous year to an operating loss. - FY2019-Q3MaterialisedAnnual report
「From a profit and loss perspective, lower inventory profitability was also a factor contributing to higher costs.」
The company stated that lower inventory profitability contributed to higher costs and affected the actual operating loss.