Rising Cost Ratio Due to Higher Direct Material Costs and Manufacturing Expenses
First written in FY2019-Q1. 8 of 19 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2025-H1.
Maruyama Mfg.Co. moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2026: 6 of 12 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- FY2025-H1WorsenedAnnual report
「In terms of profitability, although sales increased, the higher cost ratio resulting from soaring raw material costs and increases in selling, general and administrative expenses resulted in an operating loss of ¥24 million, compared with operating profit of ¥264 million in the same period of the previous year.」
The higher cost ratio caused by soaring raw material costs and increases in selling, general and administrative expenses caused operating results to turn from profit to loss despite higher sales. - FY2024WorsenedAnnual report
「For the consolidated fiscal year under review, gross profit declined by ¥261 million, or 2.5%, from the previous consolidated fiscal year to ¥10,311 million. This was due mainly to higher manufacturing costs resulting from soaring raw material costs, despite price increases for some products and higher sales of large machinery.」
Manufacturing costs continued to rise as a result of soaring raw material costs, and gross profit declined 2.5% despite price increases and higher sales of large machinery. - FY2024-Q2WorsenedAnnual report
「In terms of profitability, lower sales and a higher cost ratio due to soaring raw material costs and other factors resulted in operating profit of ¥264 million, down 37.9% year on year, and ordinary profit of ¥253 million, down 40.3%.」
The higher cost ratio caused by soaring raw material costs, together with lower sales, was a factor behind the declines in operating and ordinary profit. - FY2023RestatedAnnual report
「For the consolidated fiscal year under review, gross profit increased by ¥608 million, or 6.1%, from the previous consolidated fiscal year to ¥10,573 million. This was despite an increase in manufacturing costs due to soaring raw material costs, as the effect of price increases for some products and higher sales of large machinery more than offset it.」
Although raw material costs continued to rise, higher prices and increased sales of large machinery resulted in a 6.1% year-on-year increase in gross profit. - FY2023-Q3RestatedAnnual report
「In terms of profitability, although prices were raised for some products, the deterioration in the gross profit margin due to soaring raw material costs and increases in selling expenses and fixed costs resulted in operating profit of ¥1,244 million, down 14.2% year on year.」
Although prices were raised for some products, the deterioration in the gross profit margin caused by soaring raw material costs and increases in selling and fixed costs were factors behind the decline in operating profit. - FY2023-Q2WorsenedAnnual report
「In terms of profitability, although prices were raised for some products, the deterioration in the gross profit margin due to soaring raw material costs and increases in selling expenses and fixed costs resulted in operating profit of ¥425 million, down 34.8% year on year, and ordinary profit of ¥424 million, down 40.3%,」
Although prices were raised for some products, the continued deterioration in the gross profit margin caused by soaring raw material costs was a factor behind the declines in operating and ordinary profit. - FY2022-Q3RestatedAnnual report
「In terms of profitability, the deterioration in the gross profit margin due to soaring raw material costs and other factors resulted in operating profit of ¥1,449 million, down 8.9% year on year, and ordinary profit of ¥1,528 million, down 3.9%,」
The deterioration in the gross profit margin caused by soaring raw material costs continued and was a factor behind the declines in operating and ordinary profit. - FY2022-Q2WorsenedAnnual report
「In terms of profitability, deterioration in the gross profit margin due to soaring raw material costs and other factors resulted in operating profit of ¥651 million, down 27.2% year on year, and ordinary profit of ¥711 million, down 14.7%,」
The surge in raw material costs was reflected in an actual deterioration in the gross profit margin, resulting in declines of 27.2% in operating profit and 14.7% in ordinary profit. - FY2022-Q1MitigatedAnnual report
「In terms of profitability, logistics and fixed costs increased as sales grew, but higher gross profit and other factors resulted in operating profit of ¥3 million, compared with an operating loss of ¥64 million in the same quarter of the previous year, and ordinary profit of ¥50 million, compared with an ordinary loss of ¥49 million in the same quarter of the previous year.」
Although logistics and fixed costs increased, higher gross profit caused operating and ordinary profit to turn from losses in the same period of the previous year to profits, mitigating the pressure on earnings from rising costs. - FY2021MitigatedAnnual report
「当連結会計年度の売上総利益は、売上高の増加や生産高の増加による原価率の改善などにより、前連結会計年度に比べ722百万円（8.0％）増益の9,778百万円となりました。」
The improvement in the cost ratio resulting from increased production, in response to the rise in the cost ratio that emerged in the previous period, was reflected in higher full-year gross profit. - FY2021-Q3MitigatedAnnual report
「In terms of profitability, higher gross profit and other factors resulted in operating profit of ¥1,591 million, up 169.1% year on year, ordinary profit of ¥1,589 million, up 186.6%, and quarterly net profit attributable to owners of the parent of ¥912 million, up 193.8%.」
Higher gross profit led to a substantial increase in operating profit and other profit figures, mitigating the pressure on earnings caused by the previous rise in the cost ratio. - FY2021-Q1MitigatedAnnual report
「In terms of profitability, logistics costs increased as sales grew, but higher gross profit and lower expenses such as travel costs resulted in an operating loss of ¥64 million, compared with a loss of ¥426 million in the same quarter of the previous year, and an ordinary loss of ¥49 million, compared with a loss of ¥402 million in the same quarter of the previous year.」
Although logistics costs increased, higher gross profit and lower expenses such as travel costs substantially narrowed the operating and ordinary losses, mitigating the impact of rising costs. - FY2020MitigatedAnnual report
「Although there was a decline associated with lower sales, improvements in the cost ratio resulting from efforts to reduce manufacturing expenses and other factors led to an increase in profit of ¥627 million, or 7.5%, from the previous consolidated fiscal year, to ¥9,056 million.」
The increase in the cost ratio caused by higher direct material, manufacturing and logistics costs that emerged in the previous period was offset by reductions in manufacturing expenses and an improved cost ratio, which led to improvements in full-year gross profit and operating profit. - FY2020-Q3MitigatedAnnual report
「In terms of profitability, gross profit declined as sales decreased, but efforts to reduce manufacturing expenses and selling, general and administrative expenses resulted in operating profit of ¥591 million, up 138.7% year on year.」
Reductions in manufacturing expenses and selling, general and administrative expenses mitigated the impact of the cost increases that had been an issue through the previous period, resulting in a substantial increase in operating profit. - FY2020-Q2MitigatedAnnual report
「In terms of profitability, profit declined as sales decreased, but efforts to reduce manufacturing expenses and selling, general and administrative expenses resulted in an operating loss of ¥75 million, compared with a loss of ¥258 million in the same quarter of the previous year.」
Operating losses narrowed in the current quarter as manufacturing expenses and selling, general and administrative expenses were reduced, addressing the manufacturing expenses and other costs that had been an issue through the previous period. - FY2020-Q1MitigatedAnnual report
「In terms of profitability, gross profit declined as sales decreased, but lower manufacturing expenses and fixed-cost reductions resulted in an operating loss of ¥426 million, compared with a loss of ¥629 million in the same quarter of the previous year.」
Unlike the increase in manufacturing expenses reported through the previous quarter, manufacturing expenses declined in the current quarter, and operating losses narrowed further with the reduction in fixed costs. - FY2019-Q3MaterialisedAnnual report
「In terms of earnings, although production increased, operating income fell 67.4% year on year to ¥247 million, ordinary income fell 68.2% to ¥229 million, and quarterly net income attributable to owners of the parent fell 51.0% to ¥137 million, due to the higher cost ratio resulting from increased direct material costs and manufacturing expenses, as well as higher logistics costs.」
In addition to increases in direct material costs and manufacturing expenses, logistics costs also continued to rise, resulting in a substantial decline in operating income and other figures through the higher cost ratio. - FY2019-Q2MaterialisedAnnual report
「In terms of earnings, although production increased, the operating loss was ¥258 million, compared with operating income of ¥290 million in the same quarter of the previous year; the ordinary loss was ¥268 million, compared with ordinary income of ¥254 million; and the quarterly net loss attributable to owners of the parent was ¥225 million, compared with net income of ¥77 million, due to the higher cost ratio resulting from increased direct material costs and manufacturing expenses, as well as higher logistics costs.」
In addition to the continuing increases in direct material costs and manufacturing expenses from the previous quarter, higher logistics costs were also identified as an actual factor affecting the higher cost ratio and operating loss. - FY2019-Q1MaterialisedAnnual report
「In terms of earnings, the operating loss was ¥629 million, compared with a loss of ¥453 million in the same quarter of the previous year, due to the higher cost ratio resulting from increased direct material costs and manufacturing expenses, among other factors.」
Increases in direct material costs and manufacturing expenses actually contributed to the larger operating loss through the higher cost ratio.