Risk of Rising Procurement Costs Due to Inflation
First written in FY2024-Q2. 5 of 9 entries say "Worsened", first in FY2026-H1. Latest entry: 2026-07-30.
Japan Medical Dynamic Marketing moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2026: 6 of 12 companies on the "Worse" side.
7 other companies' latest entry also says "Worsened".
- 2026-07-30WorsenedEarnings
「The cost-of-sales ratio rose to 45.0%, up 6.6 percentage points from 38.4% in the same quarter of the previous fiscal year. The main factors were an increase in manufacturing fixed costs per unit at the U.S. subsidiary due to lower production volumes, and higher import procurement costs in Japan due to the weaker yen.」
The cost-of-sales ratio deteriorated further due to higher manufacturing fixed-cost burdens resulting from lower production volumes and higher import procurement costs caused by the weaker yen. - FY2026WorsenedAnnual report
「Cost of sales rose to ¥9,775 million, up 3.3% from the previous fiscal year, due to higher procurement costs resulting from the impact of U.S. reciprocal tariffs on purchases from Europe and Taiwan, as well as higher manufacturing overhead, including labor costs, associated with prioritizing supply. The cost-of-sales ratio consequently rose to 40.9%, compared with 37.7% in the previous fiscal year.」
In addition to inflation and the weaker yen, higher manufacturing overhead associated with U.S. reciprocal tariffs and supply prioritization measures caused the cost of sales ratio to deteriorate from 37.7% to 40.9%. - FY2026-H1WorsenedAnnual report
「Cost of sales increased to ¥4,582 million, up 6.3% from ¥4,310 million in the same period of the previous year, due to higher procurement costs, including the impact of US reciprocal tariffs on procurement from Europe and Taiwan, as well as higher indirect costs such as labour costs associated with supply prioritisation measures, which raised in-house manufacturing costs. As a result, the cost of sales ratio was 39.5%, compared with 36.5% in the same period of the previous year.」
In addition to the previous effects of inflation and the weaker yen, higher costs associated with U.S. reciprocal tariffs and supply prioritization measures pushed up procurement and manufacturing costs, raising the cost of sales ratio from 36.5% to 39.5%. - FY2025-H1MaterialisedAnnual report
「Cost of sales was affected by higher procurement costs due to inflation in the United States and the weaker yen, resulting in a cost of sales ratio of 36.5% (35.9% in the same period of the previous year).」
Higher procurement costs due to inflation and the weaker yen continued, raising the cost of sales ratio by 0.6 percentage points year on year to 36.5%. - FY2024MaterialisedAnnual report
「Cost of sales increased due to higher procurement costs resulting from inflation and the weaker yen. In addition, the cost of sales ratio was 36.3% (34.3% in the previous fiscal year), mainly due to the impact of lower reimbursement prices in Japan relative to sales.」
Higher procurement costs due to inflation and the weaker yen pushed the full-year cost of sales ratio up from 34.3% to 36.3%, indicating that the risk has materialized. - FY2024-Q3MaterialisedAnnual report
「Cost of sales amounted to a cost of sales ratio of 36.0% (34.1% in the same quarter of the previous year), due to the use of external vendors to avoid supply chain issues, higher procurement costs due to inflation, and the effects of the weaker yen and lower reimbursement prices in Japan.」
Higher procurement costs due to inflation continued to drive up the cost of sales ratio, which increased by 1.9 percentage points year on year to 36.0%. - FY2024-Q2First statedAnnual report
「The cost of sales ratio was 35.9% (33.7% in the same quarter of the previous year), due in part to the expanded use of external vendors to avoid supply chain problems, higher procurement costs resulting from inflation, the weaker yen and the impact of reimbursement price reductions in Japan.」
Higher procurement costs due to inflation were explicitly identified for the first time as a factor driving up the cost of sales ratio, which rose from 33.7% in the same quarter of the previous year to 35.9%.