Higher Procurement Prices Due to Raw Material Price and Exchange-Rate Fluctuations
First written in FY2020. 5 of 17 entries say "Materialised", first in FY2022. Latest entry: 2026-08-06.
Ohashi Technica moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 10 of 16 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- 2026-08-06MitigatedEarnings
「Although consolidated operating income continued to be affected by higher procurement prices and other factors, it increased 62.8% year on year to ¥894 million, due to higher sales and improved gross profit margins resulting from price revisions and productivity improvements in manufacturing.」
While the impact of higher procurement prices continued, higher sales, price revisions and productivity improvements led to improved margins and higher operating income. - FY2026MitigatedAnnual report
「Although the impact of higher purchase prices and other factors continued, consolidated operating profit was ¥2,426 million, up 36.1% year on year, due to higher sales, improvements in the gross profit margin resulting from price revisions and productivity gains in the manufacturing division, and reductions in selling, general and administrative expenses in the overseas divisions, among other factors.」
The impact of higher purchase prices continued, but price revisions, productivity gains and reductions in selling, general and administrative expenses resulted in a 36.1% increase in operating profit, with the response to these effects reflected in results. - 2026-05-12MitigatedRevision of earnings forecasts
「Although the China business recorded an operating loss for the second consecutive fiscal year, consolidated operating income and consolidated ordinary income exceeded the previously announced full-year earnings forecasts due to higher sales, improved gross profit margins resulting from price revisions and productivity improvements in manufacturing, and selling, general and administrative expenses coming in below plan, particularly in overseas operations.」
Price revisions, productivity improvements and control of selling, general and administrative expenses improved gross profit margins despite the impact of higher procurement prices and other factors, allowing operating income and ordinary income to exceed the full-year forecasts. - FY2026-H1MitigatedAnnual report
「Meanwhile, consolidated operating profit was ¥1,122 million, up 27.6% year on year, due to improvements in the gross profit margin resulting from price revisions and productivity gains in the manufacturing division, as well as expense reductions.」
Price revisions, productivity gains and expense reductions improved the gross profit margin despite the impact of higher raw material and procurement prices, resulting in a 27.6% year-on-year increase in consolidated operating profit. - FY2025-H1MitigatedAnnual report
「Despite the continuing impact of higher purchase and raw material prices and the Chinese business, consolidated operating profit was ¥879 million, up 32.8% year on year, due to higher overall sales and improvements in the gross profit margin resulting from price revisions, among other factors.」
The impact of higher purchase and raw material prices and the Chinese business continued, but improvements in the gross profit margin resulting from price revisions, among other factors, supported operating profit. - FY2024WorsenedAnnual report
「Consolidated operating profit was ¥1,641 million, down 20.4% year on year, significantly affected by the Chinese business reporting an operating loss due to a substantial decline in revenue, as well as higher purchase prices and energy costs.」
In addition to the previous increases in raw material prices and logistics costs, higher energy costs were reflected in results as a factor weighing on operating profit. - FY2024-Q3WorsenedAnnual report
「Consolidated operating profit was ¥1,148 million, down 25.9% year on year, mainly due to higher purchase, raw material and energy prices, increased personnel-related costs in the United States, and lower sales in China.」
Higher raw material and energy prices were explicitly identified, with increased personnel-related costs in the United States and lower sales in China reflected in the 25.9% decline in operating profit. - FY2024-Q1MaterialisedAnnual report
「Consolidated operating profit was ¥353 million, down 36.5% year on year, significantly affected by higher purchase and raw material prices and lower sales in China.」
Higher purchase and raw material prices, together with lower sales in China, were reflected in the actual results as a year-on-year decline in consolidated operating profit. - FY2023MaterialisedAnnual report
「Consolidated operating profit was ¥2,061 million, down 9.3% year on year, due to lower revenue in the domestic business, surging raw material prices, persistently elevated ocean freight costs, and higher ESG-related expenses, including investment in human resources.」
Surging raw material prices and persistently elevated ocean freight costs, together with lower revenue in the domestic business and ESG-related expenses such as investment in human resources, were reflected in the full-year results as a decline in operating profit. - FY2023-Q3MaterialisedAnnual report
「Consolidated operating profit declined year on year, due to lower domestic sales, the impact of raw material prices and ocean freight costs, and the recognition of ESG-related expenses, among other factors.」
The continued impact of raw material prices and ocean freight costs, together with lower domestic sales and other factors, was reflected in the actual results as a year-on-year decline in consolidated operating profit. - FY2023-Q2MaterialisedAnnual report
「Consolidated operating profit declined year on year, significantly affected by lower domestic sales, higher raw material prices and ocean freight costs that remained elevated.」
Higher raw material prices and elevated ocean freight costs, together with lower domestic sales, were reflected in the actual results as a year-on-year decline in consolidated operating profit. - FY2023-Q1WorsenedAnnual report
「Consolidated operating profit declined year on year, as it was significantly affected by lower domestic sales, higher raw material prices and persistently elevated ocean freight costs.」
The Group stated that continued increases in raw material prices and ocean freight costs, together with lower domestic sales, significantly weighed on consolidated operating profit. - FY2022MaterialisedAnnual report
「Consolidated operating profit also increased year on year, although it was significantly affected, particularly in the second half, by surging raw material and overseas logistics costs and other factors.」
Surging raw material and overseas logistics costs had a significant actual impact on consolidated operating profit in the second half. The Group also described measures including increasing the proportion of locally procured and internally manufactured products handled. - FY2022-Q3ReframedAnnual report
「If the Group’s procurement prices for materials, parts and other items rise due to surging raw material prices or foreign exchange movements affecting imports, and the increase cannot be passed on to selling prices, this could reduce profit margins and otherwise affect the Group’s operating results. If elevated ocean freight and other logistics costs resulting from the global logistics squeeze remain high for an extended period, higher procurement costs for imports between Group companies could also affect the Group’s operating results.」
The risk of higher procurement prices due to raw material prices and foreign exchange movements has been reorganised in the heading and body as the risk of higher procurement costs due to market fluctuations, including logistics costs. - FY2022-Q2WorsenedAnnual report
「If the Group’s procurement prices for materials, parts and other items rise due to surging raw material prices or foreign exchange movements affecting imports, and the increase cannot be passed on to selling prices, this could reduce profit margins and otherwise affect the Group’s operating results. If elevated ocean freight and other logistics costs resulting from the global logistics squeeze remain high for an extended period, higher procurement costs for imports between Group companies could also affect the Group’s operating results.」
The previous risk of higher procurement prices due to raw material prices and foreign exchange movements was expanded to include higher ocean freight costs and import procurement costs resulting from global logistics constraints. - FY2021RestatedAnnual report
「The Group seeks to minimise the risk of fluctuations in raw material prices by synchronising them as far as possible with customers and suppliers. In principle, it also enters into forward exchange contracts for payments of foreign-currency-denominated liabilities between the head office and subsidiaries to contain the risk of exchange-rate fluctuations.」
The Group continues to synchronise fluctuations in raw material prices with customers and suppliers and hedge foreign-currency-denominated liabilities with forward exchange contracts. - FY2020First statedAnnual report
「If the Group’s procurement prices for materials, parts and other items rise due to surging raw material prices or foreign exchange movements affecting imports, and the increase cannot be passed on to selling prices, this could reduce profit margins and otherwise affect the Group’s operating results.」
The Group newly organised the risks of higher procurement prices due to raw material prices and foreign exchange movements affecting imports, and lower profit margins when such increases cannot be passed on to selling prices.