Challenging Operating Environment Due to Rising Labor and Logistics Costs
First written in FY2021-Q4. 5 of 10 entries say "Worsened", first in FY2022-Q4. Latest entry: FY2026-H1.
Copa Corporation moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
45 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「During the interim accounting period, the Japanese economy continued to recover moderately, but the environment surrounding companies remains uncertain due to higher import costs resulting from rising prices and the weaker yen, as well as soaring labor costs caused by labor shortages.」
In addition to the existing increases in raw material and logistics costs, soaring labor costs resulting from labor shortages are explicitly noted, and the factors contributing to uncertainty over costs and the operating environment continue to be described. - FY2025-Q1RestatedAnnual report
「Meanwhile, energy prices and overall prices remain elevated due to Russia's invasion of Ukraine, economic sanctions against Russia, monetary tightening by countries worldwide to address inflation, and the resulting weaker yen. There are concerns that personal consumption may stagnate as households become more inclined to economize.」
The filing continues to describe uncertainty in the operating environment due to the situation between Russia and Ukraine, global monetary tightening, the weaker yen, and persistently high energy prices and overall prices. - FY2024-Q3RestatedAnnual report
「During the cumulative nine-month period under review, Japan's economy showed a gradual recovery, including a recovery in inbound demand, following the reclassification of COVID-19 as a Class 5 disease. However, the outlook remained uncertain due to persistently high crude oil and raw-material prices and prolonged geopolitical risks.」
Persistently high crude oil and raw material prices and prolonged geopolitical risks continue to be cited as factors contributing to uncertainty in the operating environment. - FY2024-Q1RestatedAnnual report
「The outlook remains uncertain due to the impact of the weaker yen accompanying monetary tightening by countries worldwide to address inflation, which has been prolonged by the situation between Russia and Ukraine.」
The filing continues to describe uncertainty surrounding costs and the operating environment due to global inflation, monetary tightening and the weaker yen. - FY2023WorsenedAnnual report
「Logistics disruptions, higher freight and raw material costs, and price increases resulting from the weaker yen have occurred due to various factors, including US-China trade tensions and the situation in Ukraine. If these costs continue to rise substantially, they may have a material impact on our business and results of operations.」
In addition to the existing risks of soaring raw material costs and the weaker yen, logistics disruptions, higher freight costs and price increases are identified specifically as country risks. - FY2023-Q2RestatedAnnual report
「As noted above, the impact of the situation in Ukraine on the global economy, including soaring raw material costs and the weaker yen, caused the planning and development of imported products to progress more slowly than expected, reducing the number of products featured in the media and weakening the advertising shower effect.」
The filing continues to describe the impact of soaring raw material costs and the weaker yen on the planning and development of imported products, media exposure and sales effectiveness. - FY2023-Q1WorsenedAnnual report
「Consumer sentiment has weakened amid concerns about price increases driven by soaring raw material costs and the weaker yen, resulting in a challenging operating environment.」
In addition to the existing risk of higher labor and logistics costs, concerns about price increases resulting from soaring raw material costs and the weaker yen are cited as a factor depressing consumer sentiment. - FY2022WorsenedAnnual report
「In addition to higher crude oil and raw material prices resulting from global conditions, procurement prices may rise as the weaker yen further increases import prices.」
The Company explicitly identified the risk of higher procurement prices due to rising crude oil and raw material prices and the weaker yen, in addition to the previous increases in personnel and logistics costs. - FY2022-Q4WorsenedAnnual report
「In the household-goods wholesale market in which the Company operates, not only was there a decline in demand following the stay-at-home consumption associated with the spread of COVID-19, but crude oil prices also rose and supplies of some raw materials and materials became unstable, resulting in product shortages and price increases. Concerns remained about the impact on future consumer activity, and the situation continued to be uncertain.」
In addition to the previous increases in personnel and logistics costs, pressure on crude oil prices and the prices and supply of raw materials and supplies has become evident, broadening the cost and supply challenges. - FY2021-Q4First statedAnnual report
「The operating environment remains challenging, with the effects of shortened hours at customer stores, intensifying sales competition across business formats, higher labor costs and rising logistics costs expected to continue.」
The Company identified rising personnel costs and logistics costs for the first time as factors that would contribute to a challenging operating environment going forward.