Market Fluctuations in Raw Material and Component Prices and Procurement Continuity Risk
First written in FY2016. 6 of 16 entries say "Materialised", first in FY2017. Latest entry: 2026-08-06.
Nihon Trim moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 34 of 52 companies on the "Worse" side.
13 other companies' latest entry also says "Materialised".
- FY2026WorsenedAnnual report
「The cost-of-sales ratio was 32.1%, an increase of 0.9 percentage points from the previous fiscal year. The main factors behind the deterioration were an increase in the proportion of the bottled-water business, which has a higher cost ratio, due to changes in the sales mix of each business, and higher raw material prices in the water-ionizer-related business, including a sharp rise in the price of platinum used as a catalyst in the electrode plates of water ionizers.」
The impact of higher component and raw material prices materialized as a 0.9-percentage-point increase in the cost-of-sales ratio, with soaring platinum prices also cited as a specific factor. - FY2026-H1MaterialisedAnnual report
「Meanwhile, cost of sales increased due to higher personnel expenses resulting from increased staffing and wage revisions in anticipation of future business expansion, as well as higher raw material prices.」
The company explicitly identified higher raw material prices as a factor behind the increase in cost of sales in its regenerative medicine-related business. - FY2025RestatedAnnual report
「In manufacturing, the challenging environment continues, including risks such as higher procurement costs. However, we are taking measures in advance, such as securing new suppliers of materials, to build a stronger supply chain and achieve a more resilient management structure.」
While recognizing the risk of higher procurement costs, the company continues to strengthen its supply chain by securing new suppliers of materials. - FY2024MitigatedAnnual report
「In manufacturing, the challenging environment continues, including higher procurement costs. However, we are taking measures in advance, such as securing new suppliers of materials, to build a stronger supply chain and achieve a more resilient management structure.」
Although procurement costs continue to rise, the company is moving ahead with securing new suppliers of materials and working to strengthen its supply chain. - FY2023ReframedAnnual report
「Moreover, social expectations for sustainable procurement are expected to grow stronger from an SDG perspective, and delays in responding could affect business performance. We will pursue responsible procurement activities that take society and the environment into consideration.」
In addition to the risks associated with the stable procurement and cost of raw materials and components, delays in addressing sustainable procurement are identified as a factor that could affect business performance. - FY2023-Q3RestatedAnnual report
「Regarding higher component procurement costs, which are one factor behind the year-on-year decline in segment profit, we plan to raise prices for various products as described above and will work to improve profitability.」
The company has reaffirmed that higher component procurement costs are a factor behind the decline in profit and that it will seek improvement through price increases for various products. - FY2023-Q2MitigatedAnnual report
「To address higher component procurement costs in the ionizer sales business, we raised the special direct-sales price of our main product, Trim Ion Refine, in June. As a result, the segment profit margin was 15.5% in the second quarter (July–September), an improvement of 3.9 percentage points from the first quarter. As component procurement costs are expected to continue rising, we plan to raise prices for ionizers from March 2023 and for water-purification cartridges and other components from April 2023.」
Component procurement costs are expected to remain elevated, but raising the price of the main product lifted the second-quarter segment profit margin to 15.5%, an improvement of 3.9 percentage points from the first quarter. Additional price increases are also planned. - FY2023-Q1MaterialisedAnnual report
「Although ionizer sales performed well overall, operating profit declined year on year because recruitment costs and personnel expenses incurred ahead of schedule to strengthen the direct-sales organization, together with higher component procurement costs, weighed on earnings.」
Higher component procurement costs are identified as an actual factor behind the year-on-year decline in operating profit, indicating that the impact of raw material and component procurement risks has emerged in business performance. - FY2022WorsenedAnnual report
「Due to the COVID-19 pandemic over the past several years, the environment has made it difficult to maintain stable procurement of components, including semiconductors. In addition to the pandemic, procurement costs for components have risen sharply in response to the recent situation in Ukraine.」
In addition to difficulties in securing stable component supplies, the company recognizes higher procurement costs resulting from the situation in Ukraine, indicating that raw material and component procurement risks have increased. - FY2021RestatedAnnual report
「We will secure multiple suppliers for the same components and aim to establish a system enabling domestic procurement while also taking costs into account.」
The company recognizes procurement risks for raw materials and components and outlines a policy of securing multiple suppliers and developing a domestic procurement framework. - FY2017MaterialisedAnnual report
「Cost of sales increased by ¥27 million from the previous consolidated fiscal year to ¥3,868 million, up 0.7% year on year. The main factor was higher procurement costs for materials.」
In connection with market fluctuations and procurement risks for raw materials and components, higher material procurement costs are identified as an actual factor behind the increase in cost of sales. - FY2016First statedAnnual report
「Market fluctuations beyond the Group's control and the ability of its business partners to secure raw materials and components on a continuing basis could adversely affect the Group's performance and financial condition.」
The company identifies external price fluctuations and the ability of business partners to maintain procurement as factors that could affect performance and financial condition.