Decline in Gross Margin Due to Delays in Passing Supplier Price Increases Through to Selling Prices
First written in FY2023-Q1. 1 of 3 entries say "Mitigated", first in FY2023-Q2. Latest entry: FY2023-Q3.
The whole theme swung hardest in 2021: 18 of 27 companies on the "Worse" side.
8 other companies' latest entry also says "Restated".
- FY2023-Q3RestatedAnnual report
「Sales of housing equipment and related construction remained above the prior-year level. The main factors were an increase in new customers, higher orders for solar-related products, and progress in passing higher procurement costs through to selling prices.」
The company continued to explain that pass-through of price increases for purchased products to selling prices had progressed, reconfirming its response to the decline in gross margin identified in the previous quarter. - FY2023-Q2MitigatedAnnual report
「Sales of housing equipment and related construction services remained above the previous year's level. This was mainly due to increased orders for kitchens and sanitary ware from new homebuilders, as well as progress in passing price increases for purchased products through to selling prices.」
In contrast to the previous quarter, when the company was unable to fully pass supplier price increases through to selling prices and gross margin declined, the company explained that price pass-through progressed during the current quarter. - FY2023-Q1First statedAnnual report
「For some products, the company was unable to fully pass supplier price increases through to selling prices, and the gross margin declined.」
The company identified as a new profitability risk the decline in gross margin resulting from transactions in which supplier price increases could not be sufficiently passed through to selling prices.