Risk of Rising Raw Material Prices and Inability to Pass Through Cost Increases
First written in FY2016. 13 of 21 entries say "Materialised", first in FY2022. Latest entry: 2026-08-07.
Kel 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: 26 of 40 companies on the "Worse" side.
13 other companies' latest entry also says "Materialised".
- 2026-08-07MaterialisedResults
「Despite the challenging business environment caused by continued increases in raw material costs, sales to the industrial equipment market, our main market, expanded steadily, and profitability improved as a result of improvements in the sales mix and the earnings effect of higher sales.」
The disclosure states that profitability improved through an improved sales mix and the earnings effect of higher sales, despite continued increases in raw material costs. - FY2026MaterialisedAnnual report
「On the earnings front, the gross profit margin declined because the cost of sales rose as a result of soaring raw material prices, while the start of mass production at the China plant was delayed from the original plan and the improvement in production efficiency fell short of expectations.」
Surging raw-material prices emerged in actual results as higher cost of sales, reducing gross profit by ¥136 million year on year. Passing through higher costs to selling prices and reducing manufacturing costs were identified as countermeasures. - FY2026-H1MaterialisedAnnual report
「Gross profit decreased by ¥271 million from the same period of the previous year to ¥1,318 million, as the cost of sales increased owing to higher raw-material and logistics costs.」
Higher raw-material and logistics costs increased the cost of sales, resulting in a year-on-year decline in gross profit. - FY2025MaterialisedAnnual report
「As a result, net sales for the fiscal year were ¥11,871 million, down 2.9% from the previous consolidated fiscal year. In terms of profit, in addition to the impact of foreign-exchange rates and higher raw-material prices and labor costs, the company invested in research and development of new products and technologies with a view to expanding its business and strengthening competitiveness in the future, as well as investing to expand its business in global markets, resulting in operating profit of ¥596 million, down 45.5% year on year」
Higher raw-material prices emerged in actual results as a factor reducing profit, together with foreign-exchange effects and higher labor costs. - FY2024-Q2MaterialisedAnnual report
「Economic conditions remained uncertain, owing to higher geopolitical risks resulting from the situation in Ukraine, sluggish exports and higher energy prices against the backdrop of a slowdown in the global economy, and sharp foreign-exchange fluctuations.」
Higher energy prices, sluggish exports, and sharp foreign-exchange fluctuations continued as downside factors in the actual operating environment. - FY2024-Q1MaterialisedAnnual report
「Economic conditions remained uncertain, owing to higher geopolitical risks resulting from the situation in Ukraine, sluggish exports and higher energy prices against the backdrop of a slowdown in the global economy, and sharp foreign-exchange fluctuations.」
Geopolitical risks, sluggish exports, higher energy prices, and sharp foreign-exchange fluctuations continued as downside factors in the actual operating environment. - FY2023MaterialisedAnnual report
「Our group expects the outlook to remain uncertain owing to prolonged geopolitical risks, surging energy prices, and sharp foreign-exchange fluctuations. We will continue to carefully assess changes in domestic and overseas markets and the impact on the supply chain and respond accordingly.」
Higher energy prices, geopolitical risks, foreign-exchange fluctuations, and supply-chain impacts continued to be identified as downside factors in the operating environment for the fiscal year. - FY2023-Q3MaterialisedAnnual report
「During the cumulative third quarter of the fiscal year, Japan’s economy was moving toward normalization as various restrictions on activity to counter the novel coronavirus infection were gradually eased, and was on a moderate recovery path. However, the pace of the economic recovery slowed owing to the yen’s depreciation and higher energy prices.」
Surging energy prices continued to be described as actual operating conditions, indicating that the risk of higher raw-material and energy prices continued to materialize. - FY2023-Q2MaterialisedAnnual report
「Concerns about an economic slowdown emerged, including a growing sense of slowdown in the European economy, surging energy prices, and foreign-exchange conditions characterized by a rapid depreciation of the yen accompanying US interest-rate hikes, amid economic pressure resulting from Russia’s invasion of Ukraine and its use of resource supplies as an economic weapon. The outlook therefore remained uncertain.」
Surging energy prices were described as actual operating conditions, indicating that the previously identified risk of higher raw-material and energy prices continued to materialize. - FY2023-Q1MaterialisedAnnual report
「Higher raw-material prices and supply-chain disruptions, driven by heightened geopolitical risks resulting from the situation in Ukraine and lockdowns in China amid the spread of the novel coronavirus, continued during the period.」
The disclosure stated that higher raw-material prices and supply-chain disruptions continued during the quarter, indicating that the risks of higher raw-material prices and supply constraints had emerged as actual operating conditions. - FY2022MaterialisedAnnual report
「Amid uncertainty caused by the situation in Ukraine and other factors, our group needs to monitor downside risks arising from higher raw-material prices, volatility in the financial and capital markets, and supply constraints.」
Higher raw-material prices and supply constraints were described as actual operating conditions, indicating that the previously identified risks of procurement shortages and inability to pass through costs have materialized. - FY2021RestatedAnnual report
「The raw materials used in products manufactured by our group include crude oil and nonferrous metals. If shortages or delays in procuring these raw materials occur owing to a sharp increase in demand or other factors, production may be insufficient, which may adversely affect operating results. In addition, if the prices of these raw materials rise and the increase cannot be passed on to product prices, the cost of sales will increase, potentially reducing profit.」
The company continues to identify the risks of shortages and delays in procuring raw materials and higher prices that cannot be passed through to product prices, and is preparing procurement plans and diversifying suppliers as countermeasures. - FY2020RestatedAnnual report
「The raw materials used in products manufactured by our group include crude oil and nonferrous metals. If shortages or delays in procuring these raw materials occur owing to a sharp increase in demand or other factors, production may be insufficient, which may adversely affect operating results. In addition, if the prices of these raw materials rise and the increase cannot be passed on to product prices, the cost of sales will increase, potentially reducing profit.」
The disclosure continues to identify the risks of shortages and delays in procuring raw materials and higher prices that cannot be passed through to product prices. It describes preparing procurement plans and diversifying suppliers as countermeasures. - FY2019RestatedAnnual report
「If the prices of these raw materials rise and the increase cannot be passed on to product prices, the cost of sales will increase, which may adversely affect operating results. In addition, if a sharp increase in demand or other factors causes shortages or delays in procuring raw materials, production may be insufficient, which may adversely affect operating results.」
The disclosure continues to identify the risks of higher raw-material prices, inability to pass through costs, and shortages or delays in procurement. - FY2018WorsenedAnnual report
「If the prices of these raw materials rise and the increase cannot be passed on to product prices, the cost of sales will increase, which may adversely affect operating results. In addition, if a sharp increase in demand or other factors causes shortages or delays in procuring raw materials, production may be insufficient, which may adversely affect operating results.」
In addition to higher crude oil and nonferrous metal prices and the inability to pass through costs, the disclosure specifically identified the risk of shortages and delays in procuring raw materials caused by a sharp increase in demand, broadening the scope of the risks. - FY2017RestatedAnnual report
「The raw materials used in products manufactured by our group include crude oil and nonferrous metals. If the prices of these raw materials rise and the increase cannot be passed on to product prices, the cost of sales will increase, which may adversely affect operating results.」
As in the past, the disclosure identifies higher crude oil and nonferrous metal prices and the impact of being unable to pass those increases on to selling prices as risks affecting costs and operating results. - FY2016First statedAnnual report
「The raw materials used in products manufactured by our group include crude oil and nonferrous metals. If the prices of these raw materials rise and the increase cannot be passed on to product prices, the cost of sales will increase, which may adversely affect operating results.」
The company identifies higher crude oil and nonferrous metal prices, and the resulting increase in the cost of sales when the higher costs cannot be passed on to selling prices, as risks.