Increase in the cost of sales ratio due to the higher proportion of disposable contact lenses
First written in FY2017. 4 of 11 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026MitigatedAnnual report
「At the Kakamigahara and Singapore plants, which manufacture daily disposable contact lenses, we will expand production capacity in line with demand to improve production efficiency and prevent overinvestment. At the Malaysia plant, we will reduce the cost of sales ratio by applying this expertise.」
As a response to the risk of a high cost of sales ratio for disposable lenses, the Group explicitly identified improvements in production efficiency and reductions in the cost of sales ratio at its Kakamigahara, Singapore and Malaysia plants. - FY2023RestatedAnnual report
「To reduce these risks, our Group will improve manufacturing efficiency by expanding production capacity at the Kakamigahara and Singapore plants, which manufacture daily disposable contact lenses, and will reduce manufacturing costs by applying this expertise at the new Malaysia plant.」
While recognizing the risk of a high cost of sales ratio for disposable lenses, the Group continues to pursue cost reductions by expanding production capacity in Kakamigahara, Singapore and Malaysia. - FY2022RestatedAnnual report
「Global demand for disposable contact lenses, particularly daily disposable lenses, is expanding. We recognize that there is a reasonable possibility that this risk will materialize as we focus on this field and increase the sales mix of disposable contact lenses.」
The Group continues to disclose the risk of a high cost of sales ratio associated with the rising mix of disposable lenses, along with measures to reduce costs through expanded production capacity. - FY2021RestatedAnnual report
「Disposable contact lenses have a higher cost of sales ratio than hard contact lenses and other products we have manufactured since our founding, but we plan to reduce manufacturing costs by increasing production volumes and through other measures. However, if these efforts to reduce manufacturing costs are unsuccessful and our Group’s overall cost of sales ratio increases, this could affect our Group’s financial position and operating results.」
The Group continues to disclose the risk of a high cost of sales ratio associated with the shift toward disposable lenses, along with measures to reduce costs through higher production volumes and production concentration. - FY2021-Q1MaterialisedAnnual report
「Although the ratio of cost of sales to net sales increased, operating income was ¥1,985 million, up 6.6% year on year, due to a reduction in the ratio of selling, general and administrative expenses.」
An increase in the cost of sales ratio was confirmed in the results for the quarter. However, the report does not explicitly state a causal relationship with the higher sales mix of disposable contact lenses. - FY2020-Q3MitigatedAnnual report
「Gross profit was ¥34,324 million, up 6.9% from the same quarter of the previous year, due to lower manufacturing costs.」
Gross profit increased 6.9% year on year due to lower manufacturing costs, indicating continued measures to address the risk of a higher cost of sales ratio that had emerged in the previous period. - FY2020-Q2MitigatedAnnual report
「Net sales were ¥42,824 million, up 6.8% from the same quarter of the previous year, while gross profit increased 8.4% to ¥23,264 million due to lower manufacturing costs.」
Gross profit increased 8.4% year on year due to lower manufacturing costs, indicating continued measures to address the risk of a higher cost of sales ratio that had emerged through the previous period. - FY2020-Q1MitigatedAnnual report
「Operating profit was ¥1,862 million, up 46.3% from the same quarter of the previous year, due to lower cost of sales and selling, general and administrative expense ratios.」
In contrast to the higher cost of sales ratio that emerged in the previous period, lower costs were cited this quarter as a factor contributing to higher profit. However, no causal relationship with the proportion of disposable lenses was explicitly stated. - FY2019MaterialisedAnnual report
「Although the ratio of cost of sales to net sales increased year on year, operating income rose 26.8% year on year to ¥5,571 million because the ratio of selling, general and administrative expenses declined year on year.」
A year-on-year increase in the cost of sales ratio was confirmed in the full-year results. The risk of higher costs for disposable lenses continues to materialize as a factor affecting profit margins. - FY2019-Q1MaterialisedAnnual report
「Operating income was ¥1,272 million, down 3.3% year on year, due to a higher cost ratio and increased selling, general and administrative expenses. Ordinary income was ¥1,247 million, down 14.7% year on year.」
An increase in the cost of sales ratio and a decline in profit were reported as actual results. However, this quarterly report does not explicitly state a causal relationship between the higher cost of sales ratio and the increased proportion of disposable contact lenses. - FY2017First statedAnnual report
「In the contact lens market, hard and soft contact lenses are trending downward, while the increase in the number of people wearing disposable contact lenses is driving the overall market. However, disposable contact lenses are less profitable than hard contact lenses and other products manufactured since our founding because we have accumulated less production expertise in this area. If the rising sales mix of disposable contact lenses causes our Group’s overall cost of sales ratio to increase, this could affect our Group’s financial position and operating results.」
The shift in the product mix toward growing disposable lens products is identified as a risk due to lower profitability resulting from limited production expertise and the potential increase in the overall cost of sales ratio.