Higher Costs and Lower Gross Profit Margin Due to Rising Raw Material Prices and Yen Depreciation
First written in FY2023-Q1. 8 of 14 entries say "Materialised", first in FY2023-Q2. Latest entry: 2026-08-10.
Yonex moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 6 of 12 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Although raw material prices rose and foreign exchange movements had an impact, gross profit increased due to the effect of higher revenue.」
Although higher costs from rising raw material prices and foreign exchange movements were incurred, the benefit of higher revenue outweighed them, and operating income reached ¥16,546 million. - FY2025Raw material prices continued to rise, but gross margin improved after selling prices were reviewedAnnual report
「Although rising raw material prices had an impact, the benefit of higher revenue was substantial and gross profit increased. SG&A expenses also increased, particularly due to higher advertising expenses from stronger marketing in the second half that capitalized on attention surrounding international tournaments, as well as higher personnel expenses and system-related costs associated with strengthening global IT capabilities. However, the substantial increase in gross profit resulted in record-high profit.」
The impact of rising raw material prices continued, but the benefit of higher revenue and improved gross margin from the review of selling prices absorbed the higher costs, resulting in record-high profit. - FY2024Costs continued to rise, but gross margin improved after selling prices were reviewedAnnual report
「Although procurement prices continued to rise due to yen depreciation, gross margin improved year on year through the sales mix and a review of selling prices, and gross profit increased as a result of higher revenue.」
Procurement prices continued to rise due to yen depreciation, but the domestic gross margin improved through the sales mix and a review of selling prices, partially absorbing the impact of higher costs. - FY2024-Q3Costs continued to rise, but domestic gross margin improved after selling prices were reviewedAnnual report
「Although procurement prices continued to rise due to yen depreciation, gross margin improved year on year through the sales mix and a review of selling prices, and gross profit increased as a result of higher revenue.」
The impact of higher procurement prices due to yen depreciation continued, but the gross margin in the Japan segment improved year on year through the sales mix and a review of selling prices. Higher costs and margin improvement occurred simultaneously. - FY2024-Q2MaterialisedAnnual report
「Domestic gross margin declined because price pass-through to domestic sales lagged behind increases in procurement prices caused by yen depreciation and higher energy costs.」
Higher procurement prices due to yen depreciation, increased energy costs and delayed price pass-through materialized as a decline in the domestic gross margin. - FY2024-Q1RestatedAnnual report
「Advertising expenses increased as the company sponsored tournaments held around the world and implemented various initiatives to use their impact to further invigorate the sport. The athletes supported by the company also performed notably well at these tournaments, generating greater attention for the company’s players. At the same time, foreign-currency-denominated expenses, including tournament sponsorship costs, player contracts and bonuses, increased, and the weaker yen further increased expenses upon translation.」
The weaker yen and increases in foreign-currency-denominated tournament sponsorship, player contract and other expenses continued to push up costs. - FY2023-Q3MaterialisedAnnual report
「Although rising raw material prices and yen depreciation increased procurement costs and affected gross profit, the increase in gross profit from higher revenue was substantial. Even after factoring in higher SG&A expenses, including advertising expenses from increased focus on marketing activities, operating income increased substantially to ¥9,317 million, up 55.9% year on year.」
Higher procurement costs from rising raw material prices and yen depreciation affected gross profit, but the benefit of higher revenue outweighed this impact, resulting in operating income increasing 55.9% year on year. - FY2023-Q2MaterialisedAnnual report
「Although higher raw material prices and yen depreciation increased costs and affected gross profit, the increase in gross profit from higher revenue was substantial. Even after factoring in higher SG&A expenses, including advertising expenses related to a focus on marketing activities such as sponsorship of the badminton world championships held in Japan, operating income increased substantially to ¥7,116 million, up 69.9% year on year.」
Higher costs from rising raw material prices and yen depreciation affected gross profit, but the benefit of higher revenue outweighed this impact, resulting in operating income increasing 69.9% year on year. - FY2023-Q1First statedAnnual 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.」
The risk that higher costs associated with rising raw material prices and yen depreciation would affect gross profit materialized during the quarter as a standalone cost factor for the first time. However, operating income increased substantially because of the benefit of higher revenue.