Risk of higher repair costs and earnings pressure due to aging alcoholic beverage production equipment
First written in FY2021. 3 of 5 entries say "Worsened", first in FY2022-Q2. Latest entry: FY2024-Q2.
Life Intelligent Enterprise Holdings moved to the "Worse" side of this theme in 2021.
0 other companies' latest entry also says "Worsened".
- FY2024-Q2WorsenedAnnual report
「The product cost ratio increased because costs rose for inflation, storage-barrel purchases and manufacturing-equipment repairs,」
Repair costs for alcoholic beverage manufacturing equipment re-emerged as a factor increasing the product cost ratio, together with inflation and storage-barrel purchases, and pressured business profit. - FY2022-Q3WorsenedAnnual report
「Compared with the previous year, export sales, particularly to Taiwan, were strong, but domestic sales of sake, shochu and liqueurs were sluggish. Overall sales declined because of prolonged emergency declarations centered on the Tokyo metropolitan area, restaurant closures and restrictions on serving alcoholic beverages. In addition, repair costs exceeding ¥26 million were incurred because of aging equipment and other factors, contributing to lower profit.」
Repair costs caused by aging equipment exceeded ¥26 million, up from more than ¥18 million in the previous quarter, and reduced profit together with weak domestic sales and the impact of COVID-19. - FY2022-Q2WorsenedAnnual report
「Repair costs exceeding ¥18 million were incurred because of aging equipment and other factors, contributing to lower profit.」
Repair costs caused by aging equipment increased from more than ¥10 million to more than ¥18 million and continued to reduce profit. - FY2022-Q1MaterialisedAnnual report
「Repair costs exceeding ¥10 million were incurred because of aging equipment and other factors, contributing to lower profit.」
The aging of alcoholic beverage manufacturing equipment, previously identified as a future risk, materialized as repair costs exceeding ¥10 million and lower profit. - FY2021First statedAnnual report
「The domestic alcoholic beverage market remains a very difficult operating environment, while the manufacturing equipment is continuing to age. Repair costs to maintain and service the equipment are expected to put pressure on profitability in the future.」
The company first explicitly identified the potential for maintenance and repair costs associated with aging alcoholic beverage manufacturing equipment to pressure future profitability.