Impact of Currency Fluctuations on Profit Margins and Price Competitiveness
First written in FY2016. 12 of 32 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-08-10.
Yonex moved to the "Worse" side of this theme in 2016, 2 years before the typical company in this theme (2018).
The whole theme swung hardest in 2025: 14 of 17 companies on the "Worse" side.
6 other companies' latest entry also says "Restated".
- 2026-08-10RestatedEarnings forecast revision
「From the second quarter onward, we expect the sports market as a whole to remain firm, but will carefully assess differences in demand trends by region and changes in the external environment, including foreign exchange movements. In light of these conditions, we have revised some assumed exchange rates in the direction of a weaker yen.」
The Company continued to indicate uncertainty in the external environment, including foreign exchange, and revised its assumed renminbi exchange rate from ¥22.5 to ¥23.0. - FY2026MaterialisedAnnual report
「Ordinary profit was ¥16,316 million, up 16.8% from the previous fiscal year, due in part to the recognition of foreign-exchange losses.」
A foreign-exchange loss of ¥140 million was recorded, making the impact of exchange-rate fluctuations evident in the results. Ordinary profit nevertheless increased. - FY2026-H1MaterialisedAnnual report
「Although overseas subsidiaries were negatively affected by the yen's movement toward appreciation, consolidated revenue reached a record high for an interim consolidated accounting period. Ordinary profit was ¥8,199 million, up 11.6% year on year, due to the recognition of foreign-exchange losses.」
The negative impact of translating overseas subsidiaries' results at stronger-yen exchange rates and foreign-exchange losses were both realized, with exchange-rate fluctuations affecting revenue and ordinary profit. - FY2025The benefit of translating results at weaker-yen exchange rates coexisted with foreign-exchange losses.Annual report
「Ordinary profit was ¥13,964 million, up 14.5% from the previous fiscal year, due in part to the recognition of foreign-exchange losses.」
Although overseas sales benefited from the weaker yen through translation into yen, a foreign-exchange loss of ¥322 million was recorded, so the foreign-exchange impact emerged in both positive and negative directions. - FY2025-H1The benefit of translating results at weaker-yen exchange rates coexisted with foreign-exchange losses.Annual report
「Overseas operations benefited from the weaker yen through the translation of results into yen, and revenue reached a record high for an interim consolidated accounting period. Ordinary profit was ¥7,344 million, up 18.1% year on year, due to the recognition of foreign-exchange losses.」
The weaker yen boosted revenue through the translation of overseas performance into yen, while foreign-exchange losses emerged as a factor weighing on ordinary profit. - FY2024The benefit of translating results at weaker-yen exchange rates coexisted with higher foreign-currency-denominated expenses.Annual report
「At overseas subsidiaries, the weaker yen compared with the previous fiscal year boosted results through translation into yen, resulting in higher revenue in each regional segment of the sporting goods business.」
The weaker yen boosted overseas subsidiaries' revenue when translated into yen, while also increasing foreign-currency-denominated advertising and promotional expenses, personnel expenses and other costs. The foreign-exchange impact therefore emerged in multiple directions. - FY2024-Q3The benefit of translating results at weaker-yen exchange rates and foreign-exchange gains coexisted with higher foreign-currency-denominated expenses.Annual report
「In addition, at overseas subsidiaries, the weaker yen compared with the same period of the previous year boosted results through translation into yen, resulting in higher revenue in each regional segment of the sporting goods business.」
The weaker yen boosted overseas subsidiaries' revenue through translation into yen and also generated foreign-exchange gains, while foreign-currency-denominated advertising and promotional expenses and other costs increased when translated at weaker-yen exchange rates. The foreign-exchange impact therefore emerged in multiple directions. - FY2024-Q2The benefit of translating results at weaker-yen exchange rates and higher foreign-currency-denominated expenses continued.Annual report
「At overseas subsidiaries, the weaker yen compared with the same period of the previous year boosted results through translation into yen, and consolidated revenue reached a record high.」
The weaker yen boosted overseas subsidiaries' revenue when translated into yen, while also increasing expenses through the translation of foreign-currency-denominated advertising and promotional expenses, athlete support costs and other expenses. The foreign-exchange impact therefore emerged in multiple directions. - FY2024-Q1The benefit of translating results at weaker-yen exchange rates coexisted with higher foreign-currency-denominated expenses.Annual report
「In addition, as the yen remained weaker than in the same period of the previous year, the translation of overseas performance boosted results, and revenue reached a record high.」
The weaker yen boosted overseas subsidiaries' revenue when translated into yen, while also increasing expenses when foreign-currency-denominated costs were translated into yen. The foreign-exchange impact therefore emerged in multiple directions. - FY2023-Q3The benefit of translating results at weaker-yen exchange rates coexisted with foreign-exchange losses caused by the yen's move toward appreciation.Annual report
「In addition to higher revenue and profit on a local-currency basis at most overseas subsidiaries, the significant depreciation of the yen boosted results through the translation of overseas performance. As the yen moved toward appreciation through the end of the third quarter, foreign-exchange losses were recorded, resulting in ordinary profit of ¥9,152 million, up 47.1% year on year.」
The significant depreciation of the yen boosted results through the translation of overseas performance into yen, while the yen's move toward appreciation through the end of the third quarter emerged as foreign-exchange losses. - FY2023-Q2The weaker yen had both cost-increasing and earnings-boosting effects.Annual report
「In addition to higher revenue and profit on a local-currency basis at most overseas subsidiaries, the significant depreciation of the yen boosted results through the translation of overseas performance and the recognition of foreign-exchange gains.」
The significant depreciation of the yen boosted results through the translation of overseas performance into yen and foreign-exchange gains, while also increasing the cost of raw materials and imported products. The foreign-exchange impact therefore emerged in multiple directions across earnings. - FY2023-Q1MaterialisedAnnual report
「Although higher raw material prices and the weaker yen affected gross profit through increased costs, the increase in gross profit from higher revenue was substantial. Even after taking into account higher selling, general and administrative expenses, including advertising and promotional expenses resulting from a focus on marketing activities, operating profit rose sharply to ¥3,422 million, up 160.4% year on year.」
Higher raw material prices and costs associated with the weaker yen affected gross profit, making the foreign-exchange risk evident in the results. However, the benefit of higher revenue outweighed these effects, and operating profit increased 160.4% year on year. - FY2022-Q3MitigatedAnnual report
「In addition to higher operating profit, ordinary profit was ¥6,223 million, up 832.0% year on year, due in part to foreign-exchange gains.」
Unlike the foreign-exchange losses recorded in the previous year, foreign-exchange gains were recorded in the cumulative period through the current quarter, mitigating the downward impact of exchange-rate fluctuations on profit. - FY2021RestatedAnnual report
「Because the Group's foreign-currency transactions are affected by exchange-rate fluctuations, they may adversely affect its operating results and financial condition.」
The risk of exchange-rate fluctuations associated with foreign-currency transactions and the translation of overseas subsidiaries' results into yen has been reaffirmed. - FY2020RestatedAnnual report
「Overall, revenue remained at approximately the previous year's level on a local-currency basis, but declined due to the impact of currency translation.」
In Europe, revenue on a local-currency basis diverged from revenue after translation into yen, reaffirming the negative impact of currency translation on revenue. - FY2020-Q3Currency translation in Europe had a negative impact on revenue.Annual report
「At the European sales subsidiaries, badminton product revenue declined, while tennis product revenue increased on higher racket sales. Although revenue increased overall on a local-currency basis, it declined due to the impact of currency translation.」
In Europe, revenue increased on a local-currency basis, but declined in yen terms after currency translation, indicating the direction of the foreign-exchange impact. - FY2020-Q2MaterialisedAnnual report
「Although gross profit increased in line with higher revenue, selling, general and administrative expenses rose due to increases in advertising and promotional expenses and personnel expenses as upfront investments for future growth. Operating profit was ¥1,711 million, down 1.0% year on year, ordinary profit was ¥1,564 million, down 16.2%, due to foreign-exchange losses, and quarterly net profit attributable to owners of the parent was ¥1,169 million, down 18.0%.」
Foreign-exchange losses were recorded, and ordinary profit declined 16.2% year on year. The impact of exchange-rate fluctuations has become evident in the results. - FY2020-Q1MaterialisedAnnual report
「Although revenue increased overall on a local-currency basis, it declined due to the impact of currency translation.」
In Europe, revenue increased on a local-currency basis, but declined in yen terms after currency translation, making the impact of exchange-rate fluctuations evident in the results. - FY2019RestatedAnnual report
「Because the Group's foreign-currency transactions are affected by exchange-rate fluctuations, they may adversely affect its operating results and financial condition.」
Foreign-exchange risk associated with foreign-currency transactions and the translation of overseas subsidiaries' results into yen continues to be disclosed. - FY2019-Q3RestatedAnnual report
「Sales of badminton products declined, and although revenue fell on a local-currency basis, sales edged up due to the weaker yen against local currencies.」
In Europe, revenue continues to decline on a local-currency basis, while the weaker yen has again resulted in a slight increase in revenue when translated into yen. - FY2019-Q2The weaker yen boosted European sales when translated into yen.Annual report
「Although revenue declined on a local-currency basis, it edged up due to the weaker yen against local currencies. Profit also increased as a result of the improved gross margin.」
In Europe, revenue declined on a local-currency basis, but revenue translated into yen increased 2.1% year on year due to the weaker yen. - FY2019-Q1MitigatedAnnual report
「Although the gross profit margin improved due to lower manufacturing costs and lower raw-material and import costs resulting from yen appreciation compared with the same quarter of the previous year, gross profit declined because of lower sales, resulting in operating profit of ¥579 million, down 28.4% year on year.」
Unlike the weaker yen, which reduced earnings in the previous period, the stronger yen lowered raw material and import costs in the current quarter, contributing to an improvement in gross margin. - FY2018MaterialisedAnnual report
「Operating profit was ¥2,925 million, down 29.5% year on year, as gross margin declined due to changes in the sales mix by product, higher manufacturing costs associated with the start-up of the new domestic plant, and higher procurement costs for imported raw materials and products resulting from exchange rates that were weaker against the yen than in the previous fiscal year.」
Higher procurement costs for imported raw materials and products due to the weaker yen continued to reduce gross margin and operating profit for the full fiscal year. - FY2018-Q3RestatedAnnual report
「Operating profit was ¥1,459 million, down 47.1% year on year; ordinary profit was ¥1,570 million, down 38.1%; and net income attributable to owners of the parent was ¥1,051 million, down 39.0%, as the decline in gross profit margin caused by changes in the sales mix, higher manufacturing costs associated with the launch of the new domestic factory, and higher procurement costs for imported raw materials and products due to yen depreciation affected earnings.」
Higher procurement costs for imported raw materials and products due to the weaker yen continue to weigh on gross margin and earnings. - FY2018-Q2MaterialisedAnnual report
「The decline in gross profit margin caused by higher procurement costs for imported raw materials and products as a result of exchange-rate movements, with the yen weaker than in the same quarter of the previous year, affected operating income, which was ¥1,871 million, down 30.6% from the same quarter of the previous year.」
Higher procurement costs for imported raw materials and products due to the weaker yen continued to materialize as a decline in gross profit margin and lower operating income. - FY2018-Q1MaterialisedAnnual report
「Profit declined due to higher raw material and import costs for products intended for the Japanese market as the yen was weaker than in the same quarter of the previous year, as well as higher advertising and promotion expenses resulting from strategic athlete contracts and tournament sponsorships.」
Higher raw material and import costs caused by the weaker yen materialized as a factor reducing profit in the domestic business. In Europe, sales growth in local-currency terms became a revenue decline after translation into yen due to the weaker pound and euro. - FY2017-Q3The severity of the impact varied by regionAnnual report
「Operating income was ¥2,762 million, up 21.7% from the same quarter of the previous year. In non-operating income and expenses, the impact of foreign exchange movements weakened, and ordinary income was ¥2,537 million, up 14.0%.」
Although the company states that the impact of foreign exchange movements weakened on a consolidated basis, the impact of weaker sterling and the euro was described as severe in Europe, where foreign exchange losses of ¥240 million were also incurred. - FY2017-Q2MaterialisedAnnual report
「In non-operating income and expenses, the company mainly incurred foreign exchange losses due to the stronger yen, and ordinary income was ¥2,134 million, up 43.2% from the same quarter of the previous year.」
Foreign exchange losses due to the stronger yen continued to materialize, with foreign exchange losses of ¥565 million recorded for the cumulative second quarter under review. - FY2017-Q1MaterialisedAnnual report
「In non-operating income and expenses, the company mainly incurred foreign exchange losses due to the stronger yen, and ordinary income was ¥897 million, up 52.1% from the same quarter of the previous year.」
The foreign exchange risk materialized as actual foreign exchange losses caused by the stronger yen. The company also states that weaker sterling and the euro reduced sales and gross profit margins in Europe. - FY2016First statedAnnual report
「A decline in the value of the currencies in regions where products are sold raises procurement costs in those regions, which could reduce profit margins and price competitiveness and adversely affect business performance and financial condition.」
The company identifies currency movements in sales and production/procurement regions, and the impact of translating overseas subsidiaries’ results into yen, as risks to business performance and financial condition.