Soaring Prices and Procurement Difficulties for Raw Materials and Outsourced Processed Products
First written in FY2016. 14 of 35 entries say "Materialised", first in FY2021-Q1. Latest entry: 2026-08-07.
Lec moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2021: 35 of 55 companies on the "Worse" side.
14 other companies' latest entry also says "Materialised".
- 2026-08-07MaterialisedEarnings
「Meanwhile, to address the prolonged depreciation of the yen, persistently high procurement costs resulting from higher raw material prices, and rising various expenses, we worked to improve profit margins through the development of high-value-added products, reductions in procurement costs, improvements in business processes, and other measures.」
The company again cites the prolonged depreciation of the yen, persistently high procurement costs due to higher raw material prices, and rising various expenses, together with measures to address them. - FY2026MitigatedAnnual report
「Gross profit increased by ¥3,262 million from the previous consolidated fiscal year to ¥20,688 million, up 18.7% year on year, and the gross profit margin improved by 4.0 percentage points from the previous consolidated fiscal year to 30.3%. This was mainly due to higher profit resulting from increased sales and other effects of higher revenue, despite higher procurement costs caused by the depreciation of the yen and persistently high fuel and raw material prices, as well as an improved sales mix resulting from product additions and discontinuations and improvements in the gross profit margin through cost reductions.」
Although higher procurement costs due to the depreciation of the yen and persistently high fuel and raw material prices continued, the gross profit margin improved from 26.3% to 30.3% through an improved sales mix resulting from product additions and discontinuations and cost reductions. - 2026-05-15MaterialisedEarnings
「Meanwhile, to absorb the prolonged depreciation of the yen, persistently high procurement costs resulting from higher raw material prices, and rising various expenses, we focused on reducing expenses and improving productivity through product additions and discontinuations, reviews of business processes, and other measures, while working to improve profit margins.」
The company states that the prolonged depreciation of the yen, persistently high procurement costs due to higher raw material prices, and rising various expenses continued, together with measures to address them. - FY2026-H1MaterialisedAnnual report
「At the same time, to absorb persistently high procurement costs due to higher raw material prices and rising various expenses, the company focused on expense reductions and productivity improvements through product renewals and reviews of operating processes, and worked to improve profit margins.」
Persistently high procurement costs due to higher raw material prices and rising various expenses continued to be identified as actual operating environment factors. Although profit margins improved through cost reductions and other measures, the risk of higher procurement costs itself continues. - FY2025WorsenedAnnual report
「Gross profit increased by ¥1,256 million from the previous consolidated fiscal year to ¥17,450 million, up 7.8% year on year, while the gross profit margin decreased by 0.3 percentage points from the previous consolidated fiscal year to 26.3%. Profit increased due mainly to the effect of higher sales from increased revenue, but the gross profit margin declined as procurement costs rose due to the depreciation of the yen and persistently high fuel and raw material prices.」
Higher procurement costs due to the depreciation of the yen and persistently high fuel and raw material prices were reflected in actual results as a 0.3-percentage-point decline in the gross profit margin. - FY2025-H1MaterialisedAnnual report
「At the same time, as procurement costs remained high due to the depreciation of the yen and higher raw material prices, and various expenses including transportation costs also rose, the company continued to focus on improving productivity through product renewals and reviews of operating processes and worked to reduce costs.」
The continued depreciation of the yen, high raw material prices, high procurement costs and rising transportation costs were identified as actual operating environment factors. In response to rising costs, the company is pursuing product renewals, reviews of operating processes and productivity improvements. - FY2024MaterialisedAnnual report
「In addition, as procurement costs remained high due to the depreciation of the yen and higher raw material prices, and domestic expenses including transportation costs also gradually increased, the company focused on improving productivity through product renewals and reviews of operating processes and made group-wide efforts to reduce costs.」
Procurement costs remained high and domestic expenses continued to rise, with packing and transportation expenses increasing from ¥3,263 million to ¥3,501 million. The increase in costs was reflected in actual results and expenses. - FY2024-Q3MaterialisedAnnual report
「In addition, as procurement costs remained high due to the depreciation of the yen and higher raw material prices, and domestic expenses including transportation costs also gradually increased, the company made group-wide efforts to reduce costs through product renewals and reviews of operating processes.」
Procurement costs remained high due to the depreciation of the yen and higher raw material prices, while domestic expenses including transportation costs continued to rise. These were identified as actual operating environment factors requiring cost reductions. - FY2024-Q2MaterialisedAnnual report
「In addition, as procurement costs rose due to the depreciation of the yen and higher raw material prices, and various expenses including transportation costs also increased, the company made group-wide efforts to reduce costs through product renewals and reviews of operating processes.」
The increases in costs associated with the depreciation of the yen, higher raw material prices, procurement costs and transportation costs continued and were reflected in actual results as a factor behind the decline in operating profit. - FY2024-Q1MaterialisedAnnual report
「With regard to profit, operating profit was ¥611 million, down 26.7% year on year, ordinary profit was ¥683 million, down 13.5%, and profit attributable to owners of the parent for the quarter was ¥364 million, down 62.2%, due mainly to the depreciation of the yen and rising costs including raw material and import-related costs.」
Higher costs, including raw material and import-related costs, were reflected in actual results as factors behind declines in operating profit, ordinary profit and profit attributable to owners of the parent for the quarter. - FY2023WorsenedAnnual report
「Gross profit decreased by ¥2,123 million from the previous consolidated fiscal year to ¥14,597 million, down 12.7% year on year, and the gross profit margin decreased by 6.2 percentage points from the previous consolidated fiscal year to 26.3%. This was mainly due to the rapid depreciation of the yen in the foreign exchange market and rising costs, including fuel and raw material costs and import-related costs.」
Rising costs associated with the depreciation of the yen, fuel and raw materials, and import-related expenses were reflected in the decline in the gross profit margin to 26.3% and became an actual factor behind the deterioration in profit. - FY2023-Q3MaterialisedAnnual report
「As procurement costs rose due to the depreciation of the yen and higher raw material prices, and various expenses including transportation costs also increased, the company worked to strengthen price competitiveness through product renewals and cost reductions.」
The increases in costs associated with the depreciation of the yen, higher raw material prices, procurement costs and transportation costs continued as actual operating environment factors. Rising costs were also reflected in results, contributing to a 63.6% year-on-year decline in operating profit. - FY2023-Q2MaterialisedAnnual report
「Meanwhile, conditions remained uncertain, including supply chain disruptions caused by lockdowns in China, higher raw material costs accompanying increases in resource prices resulting from Russia’s military invasion of Ukraine and other factors, and volatility in the financial and capital markets as monetary tightening progressed amid global inflationary pressures.」
The increase in raw material costs due to higher resource prices was identified as an actual operating environment factor, and the risk of higher prices for raw materials and outsourced processed products continued to materialize. - FY2023-Q1MaterialisedAnnual report
「Increase in raw material costs due to higher resource prices resulting from Russia's military invasion of Ukraine」
The increase in raw material costs due to higher resource prices was identified as an actual operating environment factor. - FY2022MaterialisedAnnual report
「Gross profit decreased by ¥1,504 million from the previous consolidated fiscal year to ¥16,720 million, down 8.3% year on year, and the gross profit margin decreased by 4.2 percentage points from the previous consolidated fiscal year to 32.5%. This was mainly due to initial costs associated with the start-up of a new factory, the depreciation of the yen, and rising costs including raw material and import-related costs.」
Higher costs, including raw material and import-related costs, were reflected in the decline in the gross profit margin and became an actual factor behind the decrease in operating profit. - FY2022-Q3WorsenedAnnual report
「In the household goods industry in which the Group operates, economic activity remained sluggish as the spread of COVID-19 weakened consumer spending amid deteriorating employment and income conditions. At the same time, the operating environment remained challenging due to rising costs, including sharply higher raw material prices and ocean freight rates.」
The company explicitly identified soaring ocean freight rates in addition to higher raw material prices, and stated that rising costs were making the operating environment more challenging. Operating profit actually declined 28.9% year on year. - FY2022-Q2MaterialisedAnnual report
「With regard to profit, operating profit was ¥2,440 million, down 30.8% year on year, ordinary profit was ¥2,518 million, down 30.0%, and profit attributable to owners of the parent for the quarter was ¥1,514 million, down 20.7%. This was due mainly to higher costs, including raw material and import-related costs, lower factory productivity following the decline in demand for COVID-19 countermeasure products, and liquidation-related expenses at a consolidated subsidiary.」
Higher costs, including raw material and import-related costs, were reflected in actual results as factors behind declines in operating profit, ordinary profit and net profit, together with lower factory productivity and other factors. - FY2022-Q1WorsenedAnnual report
「In addition, as various costs, including raw material costs, have risen, the company has made group-wide efforts to reduce costs.」
The rise in various costs, including raw material costs, was explicitly identified, and the previously identified risk of soaring prices and higher procurement costs has continued and become more concrete in the operating environment for the quarter. No figures were disclosed. - FY2021RestatedAnnual report
「The Group purchases raw materials, parts, outsourced processed products and other items from external suppliers to manufacture its products. If prices rise or these items become difficult to procure due to global economic conditions or the environment in countries producing the raw materials, this could affect the Group's financial position and operating results.」
The company continues to identify the risk of soaring prices and shortages of raw materials, parts, outsourced processed products and other items. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company has determined that there have been no significant occurrences or changes in the risk of soaring prices or shortages of raw materials, parts, outsourced processed products and other items. - FY2021-Q1MaterialisedAnnual report
「The supply chain, which had stagnated during the previous consolidated fiscal year, was gradually recovering, and the company worked to resolve shortages of certain products at an early stage.」
The company states that supply chain stagnation and shortages of certain products actually occurred during the previous consolidated fiscal year. Although the supply chain is gradually recovering, the company continues to address the shortages. - FY2020-Q3RestatedAnnual report
「During the cumulative third quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」
The company has determined that there have been no significant changes in the risk of soaring prices or shortages of raw materials, parts, outsourced processed products and other items. - FY2020-Q2RestatedAnnual report
「Although consumers' preference for low prices and saving on daily necessities such as household goods continued, various costs, including labor and logistics costs due to labor shortages, rose, and the operating environment remained challenging.」
Increases in labor and logistics costs due to labor shortages continued. There was no substantive change from the risks of rising raw material, labor and logistics costs identified through the previous quarter. - FY2020-Q1RestatedAnnual report
「Although consumers' preference for low prices and saving on daily necessities such as household goods continued, various costs, including labor costs due to labor shortages and logistics costs, rose, and the operating environment remained challenging.」
Increases in various costs, including labor and logistics costs due to labor shortages, continued. There was no substantive change from the risks of rising raw material, labor and logistics costs identified through the previous quarter. - FY2019-Q3WorsenedAnnual report
「Although consumers' preference for low prices and saving on daily necessities such as household goods remained deeply rooted, various costs, including raw material costs, labor costs due to labor shortages and logistics costs, rose, and the operating environment remained challenging.」
In addition to higher raw material prices, increases in labor costs due to labor shortages and in logistics costs were explicitly identified, giving concrete form to the risk of rising procurement and outsourcing costs. - FY2019-Q2WorsenedAnnual report
「Although consumers' preference for low prices and saving on daily necessities such as household goods remained deeply rooted, various costs, including raw material costs, labor costs and logistics costs, rose alongside higher crude oil prices, and the operating environment remained challenging.」
In addition to the previously identified risk of soaring prices for raw materials, parts and outsourced processed products, higher raw material costs due to rising crude oil prices were explicitly identified as an actual operating environment factor. - FY2019-Q1RestatedAnnual report
「During the cumulative first quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」
The company has determined that there have been no significant changes in the risk of soaring prices or shortages of raw materials, parts, outsourced processed products and other items. - FY2018RestatedAnnual report
「The Group purchases raw materials, parts, outsourced processed products and other items from external suppliers to manufacture its products. If prices rise or these items become difficult to procure due to global economic conditions or the environment in countries producing the raw materials, this could affect the Group's financial position and operating results.」
The company continues to identify the possibility of soaring prices and shortages of raw materials, parts, outsourced processed products and other items as a risk. - FY2018-Q3RestatedAnnual report
「During the cumulative third quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」
The company has determined that there have been no significant changes in the risk of soaring prices or shortages of raw materials, parts, outsourced processed products and other items. - FY2018-Q2RestatedAnnual report
「No new business or other risks arose during the six-month period of the current consolidated fiscal year. There were also no material changes to the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company has determined that there have been no significant changes in the risk of soaring prices or shortages of raw materials, parts, outsourced processed products and other items. - FY2017RestatedAnnual report
「The Group purchases raw materials, parts, outsourced processed products and other items from external suppliers to manufacture its products. If prices rise or these items become difficult to procure due to global economic conditions or the environment in countries producing the raw materials, this could affect the Group's financial position and operating results.」
The company continues to identify soaring prices and shortages of raw materials, parts, outsourced processed products and other items as risks. - FY2017-Q3RestatedAnnual report
「During the cumulative third quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」
The company has determined that there have been no significant changes in the risk of soaring prices or shortages of raw materials and outsourced processed products. - FY2017-Q2RestatedAnnual report
「No new business or other risks arose during the six-month period of the current consolidated fiscal year. There were also no material changes to the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company has determined that there have been no significant changes in the risk of soaring prices or shortages of raw materials and outsourced processed products. - FY2017-Q1RestatedAnnual report
「During the cumulative first quarter, there were no newly arising business or other risks. There were also no material changes in the business and other risks described in the securities report for the previous fiscal year.」
The company has determined that there have been no significant changes in the risk of soaring prices or shortages of raw materials and outsourced processed products. - FY2016First statedAnnual report
「The Group purchases raw materials, parts, outsourced processed products and other items from external suppliers to manufacture its products. If prices rise or these items become difficult to procure due to global economic conditions or the environment in countries producing the raw materials, this could affect the Group's financial position and operating results.」
The company identifies soaring prices and shortages of externally procured items as risks. It explains that the depreciation of the yen during the fiscal year increased procurement prices.