Higher costs for imported products and difficulty passing them through to prices
First written in FY2016. 5 of 17 entries say "Worsened", first in FY2023-Q1. Latest entry: FY2026.
Dkk-Toa 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: 27 of 45 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In terms of profit, in addition to recognition of inventory valuation losses and a higher cost-of-sales ratio due to soaring labor and raw material costs, R&D expenses also increased. Operating profit was ¥483 million, down 63.9% year on year, and ordinary profit was ¥600 million, down 59.3%.」
In addition to higher labor and raw material costs, inventory valuation losses and higher research and development expenses put pressure on earnings, with operating income down 63.9% year on year. - FY2026-H1WorsenedAnnual report
「In terms of profit, the cost-of-sales ratio rose due to higher labor costs and other factors, while R&D expenses also increased. Operating profit was ¥158 million, down 50.5% year on year, ordinary profit was ¥188 million, down 53.7%, and interim net profit attributable to owners of the parent was ¥172 million, down 34.3%.」
Regarding the risk of rising costs, higher labor costs increased the cost-of-sales ratio and higher research and development expenses became actual factors behind the decline in earnings, with operating income down 50.5% year on year. - FY2025WorsenedAnnual report
「In addition, rising material and transportation prices continue and may affect the performance of our group. Although the business plan incorporates a certain level of cost increases, price increases exceeding assumptions may affect our group's operating results and financial position.」
The risk of higher material and transportation prices persists, and it was noted that the impact could exceed assumptions even though a certain level of increase is incorporated into the business plan. In actual results, operating income declined due to higher costs, including labor and relocation expenses. - FY2024MitigatedAnnual report
「Component and transportation prices continue to rise, which may affect the performance of the Group. The business plan incorporates a certain level of cost increases, but price increases exceeding expectations may affect the Group's operating results and financial position. The Group is taking measures including continuing cost-reduction activities and appropriately passing higher procurement prices through to selling prices.」
Although the risk of higher component and transportation prices continued, cost reductions and appropriate pass-through to selling prices were clearly identified as countermeasures. - FY2024-Q3MitigatedAnnual report
「In addition to higher sales, improvements in the cost-of-sales ratio resulting from partial selling-price revisions and efforts to reduce manufacturing costs led to operating profit of ¥1,237 million, up 40.5% year on year, ordinary profit of ¥1,281 million, up 39.1%, and profit attributable to owners of the parent of ¥896 million, up 26.4%.」
In response to the pressure on profit from rising costs, the cost-of-sales ratio improved through partial revisions to selling prices and manufacturing cost reductions, resulting in higher profit. - FY2024-Q2MitigatedAnnual report
「In addition to higher sales, improvements in the cost-of-sales ratio resulting from partial selling-price revisions and efforts to reduce manufacturing costs led to operating profit of ¥545 million, up 51.4% year on year, ordinary profit of ¥570 million, up 53.2%, and profit attributable to owners of the parent of ¥391 million, up 25.9%.」
In response to higher costs caused by soaring component prices and the weaker yen, the cost-of-sales ratio improved through partial revisions to selling prices and manufacturing cost reductions, resulting in higher profit. - FY2024-Q1MitigatedAnnual report
「In addition to higher revenue, the cost-of-sales ratio improved through partial revisions to selling prices and efforts to reduce manufacturing costs, resulting in operating profit of ¥266 million, up 167.6% year on year.」
The improvement in the cost-of-sales ratio through partial revisions to selling prices and manufacturing cost reductions was noted as a response to the situation in which rising costs were weighing on profit. - FY2023WorsenedAnnual report
「In terms of profit, due to a higher cost ratio resulting from soaring component prices and the weaker yen, as well as an increase in sales promotion expenses, operating profit was ¥1,649 million, down 13.6% from the previous fiscal year, ordinary profit was ¥1,732 million, down 12.0%, and net income attributable to owners of the parent was ¥1,218 million, down 9.6%.」
The higher cost ratio resulting from soaring component prices and the weaker yen appeared in full-year results as declines in operating profit, ordinary profit and net income. - FY2023-Q3RestatedAnnual report
「In terms of profit, due to a higher cost ratio resulting from soaring component prices and the weaker yen, as well as increases in sales promotion and research and development expenses, operating profit was ¥880 million, down 36.1% year on year, ordinary profit was ¥921 million, down 35.1%, and net income attributable to owners of the parent was ¥709 million, down 26.3%.」
The higher cost ratio resulting from soaring component prices and the weaker yen, together with increases in sales promotion and research and development expenses, continued and appeared as declines in operating profit and other earnings. - FY2023-Q2Continued profit declines due to higher costs and expensesAnnual report
「In terms of profit, due to a higher cost ratio resulting from soaring component prices and the weaker yen, as well as increases in sales promotion and research and development expenses, operating profit was ¥360 million, down 43.8% year on year, ordinary profit was ¥372 million, down 44.7%, and net income attributable to owners of the parent was ¥311 million, down 33.2%.」
In addition to the higher cost ratio resulting from soaring component prices and the weaker yen, increases in sales promotion and research and development expenses continued, resulting in continued declines in operating profit and other earnings. - FY2023-Q1WorsenedAnnual report
「In terms of profit, due to a higher cost ratio resulting from soaring component prices and the weaker yen, as well as increases in sales promotion and research and development expenses, operating profit was ¥99 million, down 51.8% year on year, ordinary profit was ¥92 million, down 57.9%, and net income attributable to owners of the parent was ¥67 million, down 51.5%.」
The higher cost ratio resulting from soaring component prices and the weaker yen occurred in actual results, while increases in sales promotion and research and development expenses also contributed to substantial year-on-year declines in operating and ordinary profit. - FY2022MaterialisedAnnual report
「Although the cost ratio rose due to soaring component and logistics costs, operating profit was ¥1,909 million, up 3.1% year on year, and ordinary profit was ¥1,968 million, up 3.2% year on year, as a result of lower selling, general and administrative expenses, maintaining profit margins at the same level as in the previous fiscal year.」
Higher component and logistics costs appeared in actual results as an increase in the cost ratio, but profit margins were maintained through lower selling, general and administrative expenses. - FY2019-Q3RestatedAnnual report
「In terms of profit, although higher fixed costs, increased raw material costs and a higher cost-of-sales ratio resulting from changes in the sales mix reduced earnings, the increase in revenue enabled earnings to increase.」
Higher fixed and raw material costs and a higher cost-of-sales ratio due to changes in the sales mix continued to reduce earnings, but earnings increased due to the effect of higher revenue. - FY2019-Q2MaterialisedAnnual report
「Although higher fixed costs, increased raw material costs and a higher cost-of-sales ratio resulting from changes in the sales mix reduced earnings, the increase in revenue enabled earnings to increase.」
Higher fixed and raw material costs and a higher cost-of-sales ratio due to changes in the sales mix were actual factors reducing earnings. However, earnings increased due to the effect of higher revenue. - FY2016First statedAnnual report
「A situation in which it was difficult to pass higher costs for imported products through to selling prices」
The difficulty of passing higher import costs through to selling prices was identified as an actual profit-related challenge.