Deterioration in the cost ratio due to higher procurement costs and insufficient price pass-through
First written in FY2023-Q1. 8 of 10 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2027-H1.
Punch Industry 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: 29 of 49 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「On the earnings front, higher raw material prices and prices for goods purchased from partner factories, as well as increases in selling, general and administrative expenses, including personnel costs, were offset by higher sales in Japan and improved cost ratios resulting from higher operating rates.」
It states that continued increases in raw material prices and prices for goods purchased from partner factories were offset by higher sales in Japan and improved cost ratios resulting from higher operating rates. - FY2026RestatedAnnual report
「On the earnings front, the impact of soaring raw material prices in Japan, higher prices for goods purchased from partner factories and persistently high energy costs continued, but this was offset by higher sales in China and other factors.」
Persistently high raw material, purchased-goods and energy costs continued, but were offset by higher sales in China and other factors, resulting in a 20.5% year-on-year increase in operating income. - FY2025-H1MaterialisedAnnual report
「Continued increases in raw material and resource prices, including further price increases for goods purchased from partner factories, and persistently high energy costs」
It states that increases in purchased-goods prices, raw material and resource prices, and energy costs have continued. - FY2024MaterialisedAnnual report
「On the earnings side, operating profit was ¥1,240 million, down 49.1% from the previous fiscal year, due to deterioration in plant operations resulting from lower sales in China and Japan, as well as higher energy costs.」
Higher raw material and energy costs and weaker factory utilization due to lower sales were reflected in a substantial decline in full-year operating income. - FY2024-Q3MaterialisedAnnual report
「In terms of profit, operating profit was ¥934 million, down 55.2% year on year, due to deterioration in plant utilization resulting from lower revenue in China and Japan, higher energy costs and other factors.」
Higher raw material, resource and energy costs, together with lower sales in China and Japan and weaker factory utilization, were reflected in a 55.2% year-on-year decline in operating income. - FY2024-Q1MaterialisedAnnual report
「On the earnings front, higher prices for purchased goods, including soaring raw material and resource prices and parts shortages, as well as continued increases in utilities and other costs, combined with global inventory adjustments and a downtrend in market conditions, resulting in lower sales than in the same period of the previous year in Japan and China.」
Continued increases in raw material and resource prices, purchased goods and utilities, along with inventory adjustments and weak market conditions, were reflected in lower sales and deteriorating earnings in Japan and China. - FY2023MaterialisedAnnual report
「Due to the impact of deterioration in the cost ratio resulting from increases in procurement costs exceeding price pass-through to products, as well as deteriorating profitability at overseas subsidiaries due to foreign exchange movements, operating profit was ¥2,436 million, down 19.9% from the previous fiscal year, ordinary profit was ¥2,394 million, down 20.4%, and net profit attributable to owners of the parent was ¥1,390 million, down 31.9%.」
The impact of higher procurement costs outpacing price pass-through and deteriorating profitability at overseas subsidiaries due to foreign-exchange fluctuations was reflected in lower full-year operating income, ordinary income and net income. - FY2023-Q3MaterialisedAnnual report
「Operating profit was ¥2,083 million, down 19.0% year on year, ordinary profit was ¥1,983 million, down 22.0%, and net profit attributable to owners of the parent was ¥1,093 million, down 38.5%, due to the impact of deterioration in the cost ratio and other factors resulting from procurement cost increases exceeding the pass-through to product prices, as well as deteriorating profitability at overseas subsidiaries due to foreign exchange movements.」
The situation in which increases in procurement costs exceed price pass-through and deteriorating profitability at overseas subsidiaries due to foreign exchange movements have continued, appearing in actual results as year-on-year declines in profit. - FY2023-Q2MaterialisedAnnual report
「In terms of profit, in addition to higher selling, general and administrative expenses in line with increased sales, operating profit was ¥1,537 million, down 13.1% year on year, ordinary profit was ¥1,524 million, down 12.2%, and quarterly net profit attributable to owners of the parent was ¥905 million, down 28.0%, due to factors including the deterioration in the cost ratio resulting from increases in procurement costs exceeding price pass-through to products, and deteriorating profitability at overseas subsidiaries due to foreign exchange movements.」
The situation in which increases in procurement costs exceed price pass-through has continued, and has appeared in actual results as a year-on-year decline in operating profit and other items, partly due to deterioration in the cost ratio. - FY2023-Q1MaterialisedAnnual report
「In terms of profit, in addition to higher selling, general and administrative expenses in line with increased sales, operating profit was ¥705 million, down 11.4% year on year, ordinary profit was ¥698 million, down 8.3%, and quarterly net profit attributable to owners of the parent was ¥427 million, down 18.7%, due to factors including the deterioration in the cost ratio resulting from increases in procurement costs exceeding price pass-through to products, and deteriorating profitability at overseas subsidiaries due to foreign exchange movements.」
The company states that increases in procurement costs exceeded the pass-through to product prices and actually affected the year-on-year decline in operating profit and other items through deterioration in the cost ratio.