Profit Pressure from Rising Container Fees and Domestic Delivery Costs
First written in FY2022-Q2. 2 of 6 entries say "Worsened", first in FY2022. Latest entry: FY2025.
People moved to the "Worse" side of this theme in 2021, 2 years after the typical company in this theme (2019).
The whole theme swung hardest in 2026: 18 of 26 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「In addition, measures including price increases for existing products and initiatives to reduce import costs gradually began to produce results, leading to an improvement in the cost of sales ratio despite the impact of the weaker yen.」
The company explained that, despite the continued impact of higher transportation and import costs and the weaker yen, price increases for existing products and measures to reduce import costs improved the cost of sales ratio. - FY2024MitigatedAnnual report
「In addition, measures including price increases for existing products and initiatives to reduce import costs gradually began to produce results, leading to an improvement in the cost of sales ratio despite the impact of the weaker yen.」
The company explained that, while transportation and import costs continued to rise, price increases for existing products and measures to reduce import costs proved effective, improving the cost of sales ratio even amid the weaker yen. - FY2023WorsenedAnnual report
「Higher expenses due to increased transportation costs」
The rise in transportation costs was explicitly identified as a factor behind the deterioration in full-year profitability and, together with the overseas sales ratio, higher raw material costs and the weaker yen, contributed to the deterioration in the earnings structure. - FY2022WorsenedAnnual report
「Higher product costs due to surging raw material prices, putting pressure on profits ・Higher expenses due to increased transportation costs ・Greater work time required to arrange products as factory operations became unstable ・Greater work time required to secure transport vessels」
In addition to higher transportation costs, rising raw material prices, unstable factory operations and the additional work required to secure transport vessels emerged as factors worsening the cost structure and began to affect operating performance. - FY2022-Q3MaterialisedAnnual report
「Although sales increased, margins narrowed relative to sales because overseas sales, which generate relatively low margins, accounted for a very large proportion of total sales; cost of sales increased; domestic and international transportation costs rose; promotional expenses were incurred to resume displaying in-store samples that had been suspended during the COVID-19 pandemic; and expenses were incurred for medium-term research and development of new businesses.」
For transportation costs, which had been an issue since the previous quarter, the company identified increases in domestic and international transportation costs as an actual factor behind narrower profit margins. - FY2022-Q2First statedAnnual report
「Higher transportation costs began to affect results during the current quarter through container fees incurred when importing products and delivery costs for domestic distribution, and the company will take measures to address this as a future challenge.」
The company disclosed for the first time that higher container fees for imported products and domestic delivery costs had begun to affect profits from the current quarter, identifying countermeasures as a future issue.