Increase in Logistics Costs Due to Soaring Raw Material and Crude Oil Prices
First written in FY2022. 5 of 12 entries say "Mitigated", first in FY2024-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2022: 5 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「In the food distribution and supermarket industries to which we belong, logistics costs and raw material prices have remained high as the yen continues to weaken, and food prices have remained at elevated levels.」
The weak yen, persistently high logistics costs and raw material prices, and elevated food prices continue to be cited as business-environment risks. - FY2026-H1RestatedAnnual report
「In the food distribution and supermarket industries to which we belong, logistics costs and raw material prices have remained high as the yen continues to weaken, and food prices have remained at elevated levels.」
The continued weakening trend of the yen, persistently high logistics costs and raw material prices, and elevated food prices continue to be cited as business-environment factors. - FY2025MitigatedAnnual report
「Although personnel and recruitment costs increased, improvements in delivery efficiency and profitability in the supermarket business resulted in selling, general and administrative expenses of ¥8,945 million, up 9.0% year on year, operating profit of ¥627 million, up 38.8%, ordinary profit of ¥691 million, up 38.9%, and net profit of ¥481 million, up 51.1%.」
Although personnel and recruitment costs continued to increase, improvements in delivery efficiency and profitability in the supermarket business contained the impact on profit, resulting in increases in operating profit and other metrics. - FY2024MitigatedAnnual report
「In the fiscal year, revenue was ¥50,498 million, up 12.5% year on year, and gross profit was ¥8,655 million, up 10.9% year on year, due to progress in passing through higher costs such as fuel expenses, continued record extreme heat and firm transactions with major customers, including drugstore and discount store chains.」
Although costs such as fuel continued to rise, pass-through to prices progressed, and operating profit was ¥452 million, up 285.9% year on year. - FY2024-Q2MitigatedAnnual report
「In the frozen foods business, performance remained solid as the pass-through of higher fuel, electricity and other costs progressed, record-high temperatures continued, and drugstores, which are major customers, opened new stores.」
Although costs such as fuel and electricity continued to rise, the Company states that pass-through to prices progressed, and segment profit in the frozen-food business was ¥669 million, up 79.7% from the same quarter of the previous year. - FY2024-Q1MitigatedAnnual report
「In the frozen foods business, performance remained solid as the pass-through of higher fuel, electricity and other costs progressed, and due to new store openings by drugstores, which are major customers.」
Although costs such as fuel and electricity continue to rise, the increase has been increasingly passed on to prices, limiting the impact on sales and profit in the frozen-food business compared with before. - FY2023MaterialisedAnnual report
「Due to higher personnel and temporary staffing costs accompanying the increase in sales, higher fuel costs such as diesel and electricity charges, and a time lag in passing these cost increases on to prices, selling, general and administrative expenses were ¥7,687 million, up 6.4% year on year, and operating profit was ¥117 million, down 66.8% year on year.」
Higher fuel costs and the time lag in passing them on to prices emerged as an actual increase in selling, general and administrative expenses and a decline in operating profit. - FY2023-Q2MaterialisedAnnual report
「In the frozen-food business, sales remained firm due to new store openings and other factors at drugstores, its major customers. However, the increase in labor and temporary staffing costs accompanying higher sales, together with higher costs resulting from soaring fuel expenses such as diesel and electricity, resulted in sales of ¥19,807 million, up 8.6% year on year, and segment profit of ¥372 million, down 21.6%.」
Higher fuel costs, including diesel and electricity charges, emerged as actual cost increases and led to a decline in segment profit in the frozen-food business. - FY2023-Q1MaterialisedAnnual report
「However, in the frozen-food business, higher labor costs accompanying increased sales and soaring fuel prices resulted in operating income of ¥57 million, down 66.0% year on year, ordinary income of ¥67 million, down 61.6%, and quarterly net income of ¥43 million, down 64.5%.」
The rise in fuel prices is described as having emerged as an actual cost increase in the frozen-food business, leading to declines in operating profit and other metrics. - FY2022MaterialisedAnnual report
「At the same time, logistics costs have risen significantly due to higher global raw material and crude oil prices. As the working-age population declines with the falling birthrate and aging population, we, as a company with logistics functions, need to improve productivity through labor-saving measures and greater efficiency to ensure a stable supply of products, as well as strengthen recruitment efforts to secure personnel.」
The rise in global raw material and crude oil prices and the increase in logistics costs have become apparent, and higher fuel costs during the period are also cited as factors behind the increase in selling, general and administrative expenses and the decline in operating profit.