Production adjustments to reduce inventory
First written in FY2024-Q1. 2 of 4 entries say "Reframed", first in 2026-05-15. Latest entry: FY2026.
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- FY2026ReframedAnnual report
「In terms of earnings, consolidated operating profit amounted to ¥530 million, up 59.6% year on year, reflecting the impact of raising inventory levels, further strengthening cost reductions to address soaring raw material prices, and appropriate selling price adjustments.」
The description has shifted from inventory reductions and production adjustments in the previous fiscal year to operations aimed at raising inventory levels in the current fiscal year. - 2026-05-15ReframedFinancial Results Presentation
「In terms of earnings, operating profit and ordinary profit increased as a result of the impact of raising inventory levels, further strengthened cost reductions to address soaring raw material prices, and the optimisation of selling prices.」
In addition to the impact of reducing and optimising inventory levels in the past, the impact of raising inventory levels is identified as a factor affecting profit in FY2025, indicating a change in the direction of the inventory-related explanation. - FY2025AdvancedAnnual report
「In addition to the impact of normalizing inventories that had been somewhat excessive in the previous fiscal year, cost-increasing factors such as higher raw material prices, personnel expenses and depreciation expenses arose. As a result, net sales increased 8.8% year on year to ¥8,081 million, although segment profit was essentially flat at ¥874 million, up 0.1% year on year.」
The Company stated that normalizing inventories in the functional materials business, which had been somewhat excessive in the previous fiscal year, affected costs and profit in the current fiscal year. - FY2024-Q1First statedAnnual report
「Segment profit amounted to ¥269 million, down 9.5% year on year, as production adjustments primarily to reduce inventories increased the unit cost of fixed costs and raised the cost of sales.」
Production adjustments were implemented to reduce inventories. As a result, the unit cost of fixed costs increased, affecting the cost of sales and segment profit in the functional materials business. This is the first independently verifiable instance of this being identified as a specific initiative.