Rising freight rates due to COVID-19 and higher costs in IT-related businesses
First written in FY2021-Q1. 2 of 5 entries say "Reframed", first in FY2023-Q2. Latest entry: FY2025-H1.
No other company in this theme has enough history to compare yet.
- FY2025-H1MitigatedAnnual report
「In the consumer market, the company worked to maintain its unit share and improved profitability through price increases. However, extremely challenging market conditions continue because of higher costs, mainly due to shrinking domestic demand and the prolonged weakness of the yen.」
In the IT-related business, profitability improved following price increases for some products, and segment profit turned positive from a loss in the same period of the previous year. Meanwhile, higher costs driven primarily by the weaker yen continue. - FY2024-Q2WorsenedAnnual report
「Although the company worked to ensure a stable supply of products and maintained or expanded its share, revenue was flat because of shrinking domestic demand. The sharp rise in costs, mainly due to the weaker yen, created an extremely challenging earnings environment.」
Cost pressures in the IT-related business remain, with higher costs driven primarily by the weaker yen and a challenging profit environment continuing against the backdrop of further yen depreciation. - FY2024-Q1ReframedAnnual report
「Cost inflation, driven primarily by yen depreciation, created an extremely challenging earnings environment.」
Regarding cost pressures in the IT-related business, the company now identifies the weaker yen as the primary factor, rather than the higher freight rates and semiconductor shortage previously attributed to the pandemic. - FY2023-Q2ReframedAnnual report
「Higher costs stemming from the yen's depreciation and the global semiconductor shortage created a challenging earnings environment, including in terms of profitability.」
The explanation of cost pressures in the IT-related business has shifted from higher freight rates due to COVID-19 to higher costs driven by the weaker yen and the global semiconductor shortage. - FY2021-Q1First statedAnnual report
「As freight rates surged due to the impact of COVID-19, the company proactively procured components to meet customer demand. As a result, unit sales exceeded the previous year, mainly for Wi-Fi-related and storage products, but cost of sales increased and profit declined.」
The company has for the first time described the impact of higher freight rates due to the pandemic as an actual increase in cost of sales and decline in profit.