Deterioration in the Cost-of-Sales Ratio and Pressure on Needle-Related Product Profit from Disposal of Unsaleable Inventory
First written in FY2022-Q2. 1 of 3 entries say "Worsened", first in FY2022-Q3. Latest entry: FY2023.
The whole theme swung hardest in 2026: 23 of 41 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「The cost of sales ratio improved by 1.4 percentage points year on year as the impact of inventory disposals carried out in the same period of the previous year to review appropriate inventory levels for Ailess needles ended, while productivity also improved.」
The Company stated that the impact of inventory disposal, which reduced profit from eyeless needle-related products in the previous fiscal year, had ended and that the cost-of-sales ratio had improved. - FY2022-Q3WorsenedAnnual report
「Following the second quarter, the Company disposed of inventory to review appropriate inventory levels. Although the cost-of-sales ratio deteriorated, operating profit was ¥4,543 million, up 6.4% year on year, due in part to higher net sales. / Despite higher net sales, segment profit (operating profit) was ¥1,123 million, down 9.1% year on year, as a result of disposing of inventory to review appropriate inventory levels.」
The disposal of inventory to review appropriate inventory levels continued from the second quarter, expanding its impact to deterioration in the overall cost-of-sales ratio and a 9.1% year-on-year decline in segment profit from eyeless needle-related products. - FY2022-Q2First statedAnnual report
「Although the cost-of-sales ratio deteriorated as a result of disposing of inventory for which no future shipments were expected, operating profit was ¥3,079 million, up 15.6% year on year, due in part to higher net sales. / Despite higher net sales, segment profit (operating profit) was ¥782 million, down 0.1% year on year, as a result of disposing of inventory for which no future shipments were expected.」
The Company stated that disposing of inventory for which no future shipments were expected caused the overall cost-of-sales ratio to deteriorate and reduced segment profit from eyeless needle-related products by 0.1% year on year.