Profit Pressure from Higher Raw Material and Other Costs
First written in FY2023-Q1. 2 of 6 entries say "Worsened", first in FY2023-Q2. Latest entry: FY2026-H1.
The whole theme swung hardest in 2022: 124 of 167 companies on the "Worse" side.
- FY2026-H1RestatedAnnual report
「The difficult business environment in the distribution industry in which our Group operates continues, with various costs, including raw materials and logistics, continuing to rise and efforts to pass costs on to customers and improve sales efficiency being required.」
The filing reconfirms the view that increases in various costs, including raw material costs, will continue. - FY2025-H1RestatedAnnual report
「The distribution industry in which our Group operates continues to face a difficult business environment, owing to rising costs including raw materials, logistics and labor, as well as growing consumer awareness of protecting household finances amid higher prices for electricity and everyday necessities.」
The filing reconfirms the view that increases in various costs, including raw material costs, will continue, but does not state a direct causal relationship between higher raw material costs and lower profit. - FY2023MitigatedAnnual report
「Although segment profit declined across the development-oriented business model, particularly in the first half, due to rapidly rising raw-material costs and yen depreciation, the segment profit margin is trending toward recovery as a result of price increases and product additions and discontinuations.」
While higher raw material costs and the weaker yen caused profit to decline, the filing states that the segment profit margin is recovering due to price increases and the discontinuation or revision of some products. - FY2023-Q3WorsenedAnnual report
「Although the development-oriented business model as a whole has entered into forward exchange contracts and revised prices, segment profit declined due to the impact of rapidly rising raw-material costs and yen depreciation.」
The filing states that segment profit declined despite forward foreign exchange contracts and price revisions, as the rapid increase in raw material costs was compounded by the impact of the weaker yen. - FY2023-Q2WorsenedAnnual report
「Meanwhile, higher costs for raw materials and other items, particularly for miscellaneous goods supplied to one-price shops, resulted in profit falling below the same period of the previous year.」
The impact of higher costs for raw materials and other items has become more specifically apparent in profit falling below the same period of the previous year, particularly for miscellaneous goods supplied to one-price shops. Segment profit under the development-oriented business model was 68.3% of the same period of the previous year. - FY2023-Q1First statedAnnual report
「Meanwhile, higher costs for raw materials and other items, particularly for miscellaneous goods supplied to one-price shops, had a significant impact, especially on profit.」
The filing identifies as a new risk that higher costs for raw materials and other items have actually had a significant impact on profit, particularly for miscellaneous goods supplied to one-price shops.