Business Environment of Rising Ingredient Prices and Labor Costs and Stagnant Consumer Spending
First written in FY2017-Q2. 6 of 20 entries say "Worsened", first in FY2022-Q2. Latest entry: FY2026-H1.
Hurxley Holdings moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 6 of 9 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2026-H1Tariff policies and inflation coexist with a recovery in demandAnnual report
「During the interim consolidated accounting period, Japan's economy showed a gradual recovery, supported by robust inbound demand and improvements in employment and income conditions. However, the outlook remained uncertain amid concerns about an economic slowdown due to US tariff policies and heightened consumer efforts to protect their livelihoods as prices continued to rise.」
The business environment includes both recovery factors, such as inbound demand and improving employment and income conditions, and downward pressures from U.S. tariff policy, rising prices and defensive household spending. - FY2025-H1Economic recovery coexists with higher costs and geopolitical risks.Annual report
「During the interim consolidated accounting period under review, Japan's economy has been gradually recovering as social and economic activity normalizes. Improvements were seen in employment and income conditions, as securing personnel became a major concern against the backdrop of labor shortages and rising prices, while upward pressure on wages intensified. The economy is also gradually recovering as inbound demand returns, although some areas remain sluggish.」
While social and economic activity, employment and income conditions, and inbound demand are recovering, rising prices and wages, weather and natural disasters, a tendency to economize due to declining real wages, and downside risks from the situations in Ukraine and the Middle East coexist. - FY2024-Q3Demand recovery coexists with risks from overseas economies.Annual report
「During the nine-month period under review, Japan's economy was on a gradual recovery trend as social and economic activity normalized, personal consumption recovered and inbound demand rebounded. However, in addition to inflation caused by surging raw material and energy prices against the backdrop of the prolonged situation in Ukraine, the effects of global monetary tightening and concerns about the outlook for China's economy created risks that a downturn in overseas economies could affect Japan's domestic economy, leaving the outlook still uncertain.」
While social and economic activity, personal consumption and inbound demand are recovering, surging raw material and energy prices coexist with downside risks in overseas economies. - FY2024-Q2WorsenedAnnual report
「During the six-month period under review, Japan's domestic economy continued to show a gradual recovery, particularly in personal consumption. However, in addition to inflation caused by surging raw material and energy prices against the backdrop of the prolonged situation in Ukraine, the effects of global monetary tightening and concerns about the outlook for China's economy created risks that a downturn in overseas economies could affect Japan's domestic economy, leaving conditions that still required close monitoring.」
While personal consumption showed signs of recovery, surging raw material and energy prices, global monetary tightening and concerns about the outlook for China's economy broadened the sources of uncertainty in the business environment. - FY2024-Q1Normalization following the reclassification of COVID-19 as a Class 5 disease coexists with higher costs.Annual report
「During the first quarter of the fiscal year under review, Japan's domestic economy continued to show a gradual recovery, as social and economic activity, particularly personal consumption, gradually normalized following the reclassification of COVID-19 as a Class 5 disease. At the same time, in addition to inflation caused by surging raw material and energy prices against the backdrop of the prolonged situation in Ukraine, the yen depreciated rapidly, leaving the economy in a situation requiring close monitoring for downside risks.」
While social and economic activity is normalizing following the reclassification of COVID-19 as a Class 5 disease, higher raw material and energy prices and the weaker yen coexist as factors driving up costs and creating downside economic risks. - FY2023Demand recovery from the easing of restrictions on behavior coexists with higher costs.Annual report
「During the fiscal year under review, Japan's economy showed gradual signs of recovery as restrictions associated with COVID-19 were eased. However, it remained unstable due to rising energy and raw material prices resulting from the prolonged situation in Ukraine, as well as sharp fluctuations in foreign exchange rates.」
While demand recovered from the COVID-19 pandemic, the situation in Ukraine, surging energy and raw material prices, and foreign exchange fluctuations continued to be sources of instability. - FY2023-Q3RestatedAnnual report
「In addition to the global surge in resource and raw material prices caused by the situation in Ukraine since July 2022, prices have also risen as a result of the sharp depreciation of the yen, and uncertainty about the economic outlook continues.」
A difficult business environment, including surging resource and raw material prices and price increases caused by the weaker yen, continues. - FY2023-Q2WorsenedAnnual report
「However, amid changes in the business environment associated with the spread of COVID-19 and surging raw material and energy prices, the outlook is viewed with concern.」
In addition to the impact of the pandemic, surging raw material and energy prices were explicitly identified as sources of uncertainty regarding the outlook for the prepared-foods business. - FY2023-Q1WorsenedAnnual report
「However, amid uncertainty surrounding the situation in Russia and Ukraine, the economy remained in a state requiring close attention to downside risks, with resource and crude oil prices surging and the yen rapidly weakening against the US dollar.」
In addition to traditional environmental factors such as food ingredient prices, labor costs, logistics costs and stagnant consumption, geopolitical conditions, surging resource and crude oil prices, and the rapid depreciation of the yen against the dollar became sources of uncertainty in the business environment. - FY2022WorsenedAnnual report
「During the fiscal year under review, Japan's economy showed signs of improvement in economic activity, supported by progress in vaccinations and other factors, despite the continuing difficult conditions caused by the prolonged impact of COVID-19. However, restrictions on behavior, including requests to refrain from going out, continued intermittently as infections resurged due to new variants. Combined with sluggish growth in household income and rising prices for everyday necessities, this left the environment surrounding personal consumption difficult.」
The environment surrounding personal consumption was described as difficult, as the prolonged pandemic and restrictions on behavior caused by new variants coincided with sluggish household income growth and rising prices for everyday necessities. - FY2022-Q3WorsenedAnnual report
「With a new variant of the virus identified in November, uncertainty continues regarding the recovery of economic and social activity.」
While expectations for a recovery strengthened after the state of emergency was lifted, a new variant was identified in November, leaving the business environment uncertain for the recovery of economic and social activity. - FY2022-Q2WorsenedAnnual report
「Despite the proactive implementation of the measures described above, the impact of COVID-19 lasted longer than anticipated, resulting in performance falling short of the target.」
It states that the impact of COVID-19 lasted longer than anticipated, causing the takeaway bento business to fall short of its performance target. - FY2021Infectious disease and sustainability added to the business environmentAnnual report
「The recent impact of COVID-19 caused the external environment surrounding the prepared-foods and foodservice industries, including the group, to change on an unprecedented scale over the past year. This volatility continues, and its effects are expected to continue affecting society as a whole in various ways, rather than being temporary and ending once vaccines become widely available. In addition, amid growing momentum toward a sustainable, decarbonized society, calls have increased for companies to pursue their social responsibility and management transparency, particularly with respect to the environment, and the environment surrounding companies is undergoing major changes.」
In addition to food ingredient prices, labor costs and the competitive environment, the long-term effects of COVID-19, sustainability, decarbonization and corporate environmental responsibility were explicitly identified as business-environment factors. - FY2019Consumption tax increases and employee misconduct added as business-environment factorsAnnual report
「Although the Japanese economy continued on a moderate recovery path, consumer preferences for saving in anticipation of a consumption tax increase, along with continued increases in labor costs and raw material prices, were expected to keep the outlook uncertain.」
In addition to previously cited increases in labor and raw material costs and consumers’ preference for saving, the company explicitly identified restraint on consumption in anticipation of a consumption tax increase. Its analysis of operating performance also referred to an environment requiring improvements in employee capabilities due to employee misconduct. - FY2018-Q3RestatedAnnual report
「In the food sector in which the group operates, the environment remained uncertain due to factors restraining consumer behavior, such as the impact of rising raw material prices on selling prices, as well as labor shortages and higher labor costs stemming from work-style reforms.」
The company continued to describe an uncertain environment in which rising raw material prices, labor shortages and higher labor costs affected consumption and business operations. - FY2018-Q2RestatedAnnual report
「In the food sector in which the group operates, intense competition to acquire customers continued amid rising food ingredient prices and labor costs, while corporate earnings remained sluggish, and the business environment continued to be challenging.」
The company continued to describe a business environment characterized by rising food ingredient prices and labor costs, competition to acquire customers and sluggish improvement in corporate earnings. - FY2018-Q1RestatedAnnual report
「Against this backdrop, the takeaway bento business placed its commitment to food safety and security at the center of its operations and developed new products to meet customers’ diversifying needs and strengthen its product offering.」
The company stated that intense competition across industries and business formats and higher labor costs amid tight labor supply and demand had resulted in a persistently challenging competitive environment in the food sector. - FY2017Cost increases and the competitive environment specifiedAnnual report
「In the food sector in which the group operates, intense competition with other industries and business formats, including foodservice and prepared foods, continued, as did higher personnel expenses amid tight labor supply and demand, rising raw material prices due to the weak yen and adverse weather, and higher logistics-related costs. Consumers also showed a preference for saving, and the outlook remained uncertain.」
The company provided specific factors behind the previously uncertain business environment, including intensifying competition, higher labor, raw material and logistics costs, and consumers’ preference for saving. - FY2017-Q3RestatedAnnual report
「In the food sector in which the group operates, the environment remained uncertain due to factors such as rising raw material and selling prices, which restrained consumer behavior.」
The company recognized that rising raw material and selling prices were restraining consumer behavior in the food sector and that an uncertain business environment continued. - FY2017-Q2First statedAnnual report
「In the food sector in which the group operates, corporate earnings and personal consumer spending remained sluggish, not only because of the impact of rising food ingredient prices and labor costs but also amid continued concerns about deflation and the effects of financial policy.」
The company described rising food ingredient prices and labor costs, concerns about deflation, and sluggish corporate earnings and personal consumption as business-environment factors.