Risk of surging prices for materials such as steel and parts
First written in FY2017. 10 of 20 entries say "Mitigated", first in FY2024-Q1. Latest entry: 2026-07-10.
The whole theme swung hardest in 2021: 18 of 27 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- 2026-07-10MitigatedEarnings
「Although raw material prices remained elevated and various expenses, including logistics costs, increased, along with higher personnel expenses associated with investment in human resources, we absorbed these increases and secured higher profit.」
The company stated that, while material prices, logistics and other expenses, and personnel expenses continued to rise, it absorbed these increases and secured higher profit. - FY2026MitigatedAnnual report
「As a result of passing on the increase in raw material prices to customers again during the consolidated fiscal year, among other factors, gross profit increased by ¥1,046 million from the previous consolidated fiscal year to ¥19,020 million, up 5.8% year on year. The gross margin also improved by 0.5 percentage points from the previous consolidated fiscal year to 28.5%, reflecting product price revisions and other factors.」
The company passed on the increase in raw material prices to customers again, resulting in a 5.8% year-on-year increase in gross profit and a 0.5 percentage-point improvement in the gross margin to 28.5%. It states that progress was made in addressing the impact of soaring material prices on profit. - FY2026-H1MitigatedAnnual report
「Although raw material prices remained elevated and other expenses, including logistics costs, increased, as did labor costs associated with investments in personnel, the company absorbed these increases and secured profits.」
While raw material prices remain elevated and various expenses, including logistics costs, and labor costs continue to rise, the company states that it absorbed these increases and secured profit. - FY2025MitigatedAnnual report
「As a result of passing on the increase in raw material prices to customers again during the consolidated fiscal year, among other factors, gross profit increased by ¥1,719 million from the previous consolidated fiscal year to ¥17,973 million, up 10.6% year on year. The gross margin also improved by 1.2 percentage points from the previous consolidated fiscal year to 28.0%, reflecting product price revisions and other factors.」
Gross profit increased as the company passed on the increase in raw material prices to customers again, among other factors, and the gross margin also improved. The company continues to address the impact of soaring material prices on profit. - FY2025-H1MitigatedAnnual report
「On a profit basis, the company secured higher profits by absorbing increases in the cost of raw materials and other inputs, which remained elevated, and higher labor costs associated with investments in personnel.」
Although raw material costs remain elevated and labor costs continue to rise, the company states that the commercial kitchen equipment segment absorbed these increases and secured higher profit. - FY2025-Q1MitigatedAnnual report
「On a profit basis, the company secured higher profits by absorbing increases in the cost of raw materials and other inputs, which remained elevated, and higher labor costs associated with investments in personnel.」
Although raw material costs and personnel expenses continued to increase, the commercial kitchen division is described as having absorbed these increases and secured higher profits. - FY2024MitigatedAnnual report
「Gross profit increased by ¥1.829 billion from the previous consolidated fiscal year to ¥16.253 billion, up 12.7%, due mainly to the downward trend in purchase prices for raw materials during the current consolidated fiscal year and the passing on of the previous consolidated fiscal year's raw material price increases to customers.」
The downward trend in raw material purchase prices and the passing on of higher costs to customers increased gross profit, mitigating the impact of soaring raw material prices on profits. - FY2024-Q3MitigatedAnnual report
「In addition, the effect of product price increases and gross margin improvement initiatives by the sales division enabled us to absorb higher raw material costs and higher personnel expenses associated with investment in human resources」
Although raw material costs remain elevated, the spread of product price increases and gross margin improvement initiatives are described as having enabled the increase in costs to be absorbed. - FY2024-Q2MitigatedAnnual report
「Meanwhile, stainless steel prices, which rose sharply in the second half of the previous fiscal year, remained elevated after the start of the current fiscal year, and raw material costs also remained high. However, operating profit increased, partly because the effect of the product price increases implemented in January became increasingly widespread month by month.」
Although stainless steel prices and raw material costs remain elevated, the effect of product price increases spread progressively each month, resulting in higher operating profit and indicating progress in addressing the impact on profits. - FY2024-Q1MitigatedAnnual report
「Although stainless steel prices, which rose sharply in the second half of the previous fiscal year, remained high into the current fiscal year and raw material costs continued at elevated levels, the effect of the product price increase implemented in January is beginning to take hold, and operating profit returned to growth.」
Although stainless steel prices and raw material costs remain elevated, the effect of product price increases led to higher operating profit, indicating progress in addressing the impact of rising costs on profits. - FY2023WorsenedAnnual report
「Gross profit, like cost of sales, declined by ¥43 million from the previous consolidated fiscal year to ¥14.423 billion, down 0.3%, due mainly to raw material prices rising substantially above initial assumptions. The gross profit margin also deteriorated by 2.3 percentage points from the previous consolidated fiscal year to 25.1%, due to soaring raw material prices and competition with industry peers.」
Soaring raw material prices materialized as a gross profit margin of 25.1%, a deterioration of 2.3 percentage points from the previous year, making the impact on profits more concrete. - FY2023-Q3WorsenedAnnual report
「Meanwhile, profit margins declined because of the rapid rise in prices of raw materials such as stainless steel. Although we have continued efforts to reduce costs, it is unfortunately difficult to absorb all the increases. Accordingly, we will work to secure profits, including by raising product prices from January 2023.」
The rapid rise in prices of raw materials such as stainless steel has materialized as a decline in profit margins, and it is explicitly stated that the entire increase cannot be absorbed through cost reductions alone. - FY2023-Q2WorsenedAnnual report
「Meanwhile, prices of raw materials, including stainless steel, have risen, and further increases are expected in the second half of the fiscal year. We therefore continued to focus on securing profits.」
The rise in prices of raw materials such as stainless steel has materialized, and the risk of soaring material prices has intensified as further increases are expected in the second half of the fiscal year. The price increases are described as an event that has actually occurred. - FY2023-Q1WorsenedAnnual report
「Uncertainty continues due to soaring resource prices resulting from the situation involving Russia and Ukraine, adverse effects on the global economy and the rapid depreciation of the yen.」
Continued soaring resource prices are explicitly linked to the situation involving Russia and Ukraine as a market factor, reinforcing the background to the risk of soaring material prices. - FY2022WorsenedAnnual report
「During the consolidated fiscal year, Japan's economy remained in an extremely difficult situation as waves of COVID-19 infection that had continued since the year before last persisted throughout the year, causing economic and consumer activity to decline. In addition, the outlook remained uncertain across the global economy, including Japan, due to high resource prices and semiconductor shortages.」
Higher resource prices are described as an actual factor affecting the business environment, reinforcing the background to the risk of soaring material prices. - FY2021RestatedAnnual report
「If market prices rise substantially and the increase cannot be passed on to product selling prices, this may affect the operating results and financial condition of the Group.」
The risk of an impact on profitability from soaring prices for steel, components and other materials and the inability to pass the increases on to selling prices, along with responses involving price negotiations and supplier selection, continues to be described. - FY2020RestatedAnnual report
「The Group continuously monitors market prices and negotiates prices as necessary. However, if market prices rise substantially and the increase cannot be passed on to product selling prices, this may affect the operating results and financial condition of the Group.」
The risk of an impact on profitability from soaring prices for steel, components and other materials and the inability to pass the increases on to selling prices, along with responses involving price negotiations, continues to be described. - FY2019RestatedAnnual report
「If market prices rise substantially and the increase cannot be passed on to product selling prices, this may affect the operating results and financial condition of the Group.」
The risk of an impact on profitability from soaring prices for steel, components and other materials and the inability to pass the increases on to selling prices continues. - FY2018RestatedAnnual report
「If market prices rise substantially and the increase cannot be passed on to product selling prices, this may affect the operating results and financial condition of the Group.」
The risk of an impact on profitability if procurement prices for steel, components and other materials rise sharply and the increases cannot be passed on to selling prices continues to be described. - FY2017First statedAnnual report
「If market prices rise substantially and the increase cannot be passed on to product selling prices, this may affect the operating results and financial condition of the Group.」
The increase in purchase prices resulting from soaring crude oil and raw material prices and the inability to pass these increases on to product prices are described as risks to profitability and financial condition.