Earnings pressure from higher logistics costs
First written in FY2019. 6 of 17 entries say "Materialised", first in FY2024-Q2. Latest entry: FY2027-H1.
Poplar moved to the "Worse" side of this theme in 2023, 4 years after the typical company in this theme (2019).
The whole theme swung hardest in 2026: 13 of 22 companies on the "Worse" side.
6 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「Cost pressures continued, including soaring raw material and energy prices resulting from the prolonged situations in Ukraine and the Middle East, sharp exchange-rate fluctuations, and higher labor and logistics costs.」
Higher logistics costs continued to weigh on costs during the current interim consolidated accounting period and were cited alongside year-on-year declines in operating income and other measures. - FY2026WorsenedAnnual report
「Operating income was ¥302 million, down 26.0% year on year, due to higher raw-material and product prices resulting from inflation, first-year support and promotional costs associated with converting directly operated stores to franchises, higher rent accompanying the increase in chain stores, and higher delivery costs, among other factors.」
Higher delivery costs continued to materialize as a factor depressing operating income, alongside raw-material and product prices, labor costs and other factors. Operating income declined 26.0% year on year. - 2026-04-08WorsenedRevisions to earnings forecasts
「In terms of profit, in addition to higher costs resulting from rising raw-material prices and logistics costs, advance expenses such as personnel costs were incurred to establish a production system for increased output following the start-up of the tunnel freezer equipment introduced in late August.」
Higher logistics costs were cited as a factor weighing on profit, alongside rising raw-material prices and advance expenses associated with establishing increased production capacity. - FY2025MaterialisedAnnual report
「Selling, general and administrative expenses increased 0.7% year on year due to higher delivery costs and higher rent and promotional costs accompanying the increase in franchise stores. Operating income was ¥408 million, up 1.0% year on year, as the company continued its gradual transition to a more resilient earnings structure.」
Higher delivery costs and higher rent and promotional costs accompanying the increase in franchise stores materialized as actual cost increases. Meanwhile, operating income was ¥408 million. - FY2025-H1MaterialisedAnnual report
「In terms of profit, although logistics and raw material costs soared, the Company cleared its initial profit budget as strong sales and progress in reducing costs by converting directly operated stores to franchises more than offset these factors,」
It states that soaring logistics costs materialized as an actual cost burden. However, it explains that strong sales and cost reductions from franchising more than offset the burden. - FY2025-Q1MaterialisedAnnual report
「In terms of profit, although logistics and labor costs increased and raw material prices soared, the increase in profit accompanying sales growth and the reduction in costs resulting from promoting the conversion of stores to franchises exceeded these effects,」
It states that higher logistics costs were an actual driver of expenses during the quarter. However, the impact was absorbed at the profit level through higher sales and lower costs resulting from franchising. - FY2024MaterialisedAnnual report
「Selling, general and administrative expenses declined 4.6% year on year, mainly due to lower store-management costs, despite increases in utilities expenses resulting from higher fuel prices and other factors, delivery costs and promotional costs accompanying the increase in franchise stores. Operating income was ¥404 million, up 626.4% year on year.」
Higher utilities and delivery costs resulting from soaring fuel prices and other factors were identified as actual drivers of cost increases. Meanwhile, total selling, general and administrative expenses declined 4.6% due to lower store-management costs. - FY2024-Q2MaterialisedAnnual report
「In terms of profit, although expenses substantially exceeded expectations, including higher logistics costs resulting from soaring fuel prices and higher utility costs, strong store sales contributed to operating profit of ¥231 million (operating profit of ¥2 million in the same period of the previous year) and ordinary profit of ¥194 million (ordinary profit of ¥10 million in the same period of the previous year).」
Regarding the risk of rising logistics costs, higher logistics expenses resulting from soaring fuel costs actually materialized as a cost overrun substantially exceeding expectations. - FY2024-Q1WorsenedAnnual report
「Meanwhile, the situation in Ukraine has become protracted, and a difficult operating environment continues, with many management challenges, including concerns about weaker consumer sentiment due to higher fuel and raw-material prices, rising labor costs and the 2024 logistics problem.」
The 2024 logistics problem was newly identified, in addition to higher fuel and raw-material prices, as a factor behind rising logistics costs, making the logistics-related management challenges more specific. - FY2023WorsenedAnnual report
「A restructuring of the earnings base capable of responding to risks in the operating environment, including rising logistics costs resulting from worldwide increases in raw-material and energy prices caused by the situation in Ukraine, is required.」
Rising logistics costs have continued to materialize as an operating-environment risk accompanying higher raw-material and energy prices. - FY2022RestatedAnnual report
「In the manufacturing and wholesale divisions, we improved profitability by raising utilization rates through the consolidation and rationalization of factories and centers, reducing logistics costs through flexible reconfiguration of delivery routes, and strengthening sales of our core Popu-ben products at Poplar and Lawson-Poplar stores.」
We continue initiatives to reduce logistics costs and improve profitability through factory consolidation, delivery-route restructuring and stronger Popu-ben sales. - FY2022-Q2MitigatedAnnual report
「In the manufacturing and wholesale divisions, we improved profitability by raising utilization rates through the consolidation and rationalization of factories and centers, reducing logistics costs through flexible reconfiguration of delivery routes, and strengthening sales of our core Popu-ben products at Poplar and Lawson-Poplar stores.」
We improved profitability and reduced logistics costs through the consolidation and rationalization of factories and centers and the reconfiguration of delivery routes. - FY2022-Q1MitigatedAnnual report
「In the manufacturing and wholesale divisions, we improved profitability by raising utilization rates through the consolidation and rationalization of factories and centers and reducing logistics costs through flexible reconfiguration of delivery routes.」
We are working to reduce logistics costs and improve profitability through the consolidation and rationalization of factories and centers and the flexible reconfiguration of delivery routes. - FY2021RestatedAnnual report
「In the “Smart Store Business,” centered on operating our existing company-owned brand stores, Poplar, Seikatsu Saika, Three Eight and Kurashi House, we have already launched a new “New Style Operations” model as an optimal operating structure for stores within facilities, which will account for most of the business including the impact of the latest business reorganization, and are working to reduce logistics costs and rebuild our product procurement structure.」
We continue to recognize rising logistics costs as a burden on the operating environment and are working to reduce them by reviewing our delivery and procurement structures. - FY2019First statedAnnual report
「The retail industry remained in a difficult operating environment as competition across business formats intensified further, alongside rising logistics costs and the increasingly serious labor shortage.」
It identified rising logistics costs for the first time as an independent theme among the factors contributing to the difficult operating environment in the retail industry, alongside labor shortages and intensifying competition.