Soaring Raw Material Prices
First written in FY2016. 5 of 17 entries say "Mitigated", first in FY2025-H1. Latest entry: FY2027-H1.
Nakanishi Mfg. moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 26 of 42 companies on the "Worse" side.
16 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「The gross profit margin on revenue rose 1.9 percentage points from the same period of the previous year as higher costs were passed through to selling prices. As a result, the increase in selling, general and administrative expenses due to base pay increases and higher travel and transportation expenses was absorbed, resulting in operating profit of ¥775 million, up 42.5% year on year, ordinary profit of ¥865 million, up 39.9%, and interim net profit of ¥552 million, up 41.9%.」
Although higher raw material and production costs continued, the company stated that passing these costs through to selling prices raised the gross profit margin on revenue by 1.9 percentage points year on year and absorbed the increase in selling, general and administrative expenses. - FY2026MitigatedAnnual report
「Regarding profitability, the gross profit margin improved as a result of improved production efficiency, despite the impact of rising prices.」
States that although the impact of surging prices has continued, the gross margin on sales improved due to higher production efficiency. The mitigation of the impact on profitability through price pass-through and efficiency improvements has continued. - FY2026-H1MitigatedAnnual report
「The gross margin on sales rose by 0.7 percentage points from the same period of the previous year as higher costs were passed on to selling prices, while selling, general and administrative expenses increased due to base salary increases for employees, higher travel and transportation expenses, and other factors,」
Although higher costs have continued, the gross margin on sales rose by 0.7 percentage points year on year as the increases were passed on to selling prices. Meanwhile, operating profit and other measures declined due to higher selling, general and administrative expenses. - FY2025MitigatedAnnual report
「In terms of profit, although affected by surging prices, the gross margin on sales improved as the higher sales ratio of our highly profitable own products and improvements in production efficiency proved effective.」
States that although the impact of surging prices has continued, the gross margin on sales improved due to a higher sales ratio for our own products and improved production efficiency. - FY2025-H1MitigatedAnnual report
「The gross margin on sales rose by 1.7 percentage points from the same period of the previous year as higher costs were passed on to selling prices」
States that although higher costs have continued, the gross margin on sales rose by 1.7 percentage points year on year as the increases were passed on to selling prices, indicating that the impact was mitigated through price pass-through. - FY2024MaterialisedAnnual report
「Although affected by surging prices, the gross profit margin was maintained at the same level as the previous fiscal year, partly because sales to the school meal sector, which has a high proportion of our own products, remained firm,」
States that while the impact of surging prices emerged in the earnings environment for the period, the gross profit margin was maintained at the same level as in the previous period due partly to firm sales to the school meal sector. - FY2024-Q2MaterialisedAnnual report
「The gross margin on sales declined by 1.0 percentage point from the same period of the previous year because of difficulties in passing higher costs on to selling prices」
States that the gross margin on sales declined by 1.0 percentage point year on year because higher costs could not be passed on to selling prices, indicating that the impact of rising raw material and other costs actually emerged in the current quarter’s margin. - FY2024-Q1RestatedAnnual report
「However, pressure for prices of food, energy, and other goods to rise has not eased, and the economic outlook remains uncertain.」
Continues to state that pressure for prices of goods to rise has not eased. The current quarterly report does not state the direct amount of the impact on our profit. - FY2023MaterialisedAnnual report
「However, in terms of profit, the gross profit margin declined due to the impact of higher raw material costs and other factors, while selling, general and administrative expenses increased due to staff additions, the easing of restrictions on activities, and other factors. As a result, operating profit was ¥1,072 million, down 34.6% year on year, ordinary profit was ¥1,193 million, down 32.0%, and net profit for the period was ¥803 million, down 28.1%.」
States that higher raw material costs emerged in actual results as a factor reducing operating profit, ordinary profit, and net profit for the period through a decline in the gross profit margin. - FY2023-Q3MaterialisedAnnual report
「The impact of surging prices and procurement difficulties for imported materials due to rising global inflation became apparent in Japan, which entered an inflationary phase in which prices were rising, resulting in an uncertain outlook. In terms of profit, selling, general and administrative expenses increased, including raw material costs, travel and transportation expenses as restrictions related to COVID-19 were eased, active participation in trade shows, packing and freight charges, commissions paid, and depreciation and amortization. As a result, operating profit was ¥295 million, down 60.0% year on year, ordinary profit was ¥418 million, down 50.0%, and net profit for the quarter was ¥279 million, down 46.0%.」
States that surging prices and procurement difficulties for imported materials became apparent in Japan, and that higher raw material prices emerged in actual results as a factor reducing operating profit and other measures. - FY2023-Q2WorsenedAnnual report
「Due to the impact of disruptions to global logistics networks and parts shortages, among other factors, some projects had delivery dates shifted from the first half to the second half,」
States that, in addition to the previously identified risks of surging raw material prices and procurement difficulties, disruptions to global logistics networks and parts shortages emerged as actual factors affecting results through shifts in project delivery dates. - FY2023-Q1WorsenedAnnual report
「Price increases are progressing across a wide range of sectors, mainly due to surging raw material prices and the rapid depreciation of the yen, and the economic environment remains uncertain.」
States that surging raw material prices have continued and that price increases are progressing across a wide range of sectors. - FY2022RestatedAnnual report
「The prices of raw materials for our products and other factors are affected by market conditions. In addition, if the supply of raw materials is interrupted or insufficient due to supply chain disruptions caused by supplier disasters or bankruptcies, the spread of infectious diseases such as COVID-19, or other factors, this could adversely affect our financial position and operating results.」
Continues to identify market fluctuations in raw material prices and other factors, as well as the risk of supply interruptions and shortages caused by supplier disasters or bankruptcies and infectious diseases. - FY2021RestatedAnnual report
「The prices of raw materials for our products and other factors are affected by market conditions. In addition, if the supply of raw materials is interrupted or insufficient due to supply chain disruptions caused by supplier disasters or bankruptcies, the spread of infectious diseases such as COVID-19, or other factors, this could adversely affect our financial position and operating results.」
Continues to identify the risk of market fluctuations in raw material prices and other factors, as well as the risk of supply interruptions and shortages caused by supplier disasters or bankruptcies and infectious diseases. - FY2020WorsenedAnnual report
「If the supply of raw materials is interrupted or insufficient due to supply chain disruptions caused by supplier disasters or bankruptcies, the spread of infectious diseases such as COVID-19, or other factors, this could adversely affect our financial position and operating results.」
In addition to the previously identified risks of surging raw material prices and an inability to pass them on to selling prices, explicitly identifies supply interruptions and shortages caused by supplier disasters or bankruptcies and infectious diseases as risks. - FY2018RestatedAnnual report
「If the prices of raw materials used to manufacture our products surge and we are unable to pass the increase on to product prices, this could adversely affect our financial position and operating results.」
Continues to identify the risk of deterioration in profitability if surging raw material prices cannot be passed on to selling prices. - FY2016First statedAnnual report
「If the prices of raw materials used to manufacture our products surge and we are unable to pass the increase on to product prices,」
Identifies deterioration in profitability as a risk if increases in raw material prices cannot be passed on to selling prices.