Earnings pressure from surging raw material costs

「The operating environment surrounding our Group is expected to remain uncertain, amid concerns that inflation caused by geopolitical risks and supply chain disruptions may weaken corporate profitability and personal consumption.」

「一部製品で価格転嫁に遅れ。」

「However, if intensified procurement competition causes the prices of principal raw materials to surge and the increases cannot be adequately offset through cost reductions or passed on to selling prices, or if procurement delays occur because supply chains are disrupted by social issues, disasters or other events, this may affect the performance of our Group.」

「The environment surrounding the Kyodo Printing Group remained uncertain due to changes in the business environment, including the accelerating digital shift and soaring raw-material prices.」

「The environment surrounding the Kyodo Printing Group remained difficult, as inbound demand recovered steadily while resource prices remained high and demand for print media declined amid the accelerating digital shift.」

「Against this backdrop, our Group is promoting various initiatives based on its medium-term management policy, “Taking on future-oriented transformation to create a prosperous society and new value,” while also focusing on measures to address surging prices of raw materials and other items.」

「The environment surrounding the Kyodo Printing Group remained difficult, as progress was made in the recovery from the COVID-19 pandemic while prices for various resources soared and the digital shift accelerated in the existing printing business.」

「Selling, general and administrative expenses increased 9.8% year on year to ¥16.51 billion. SG&A expenses as a percentage of net sales rose 0.7 percentage points from 17.0% in the previous fiscal year to 17.7%, due mainly to higher depreciation expenses following completion of the head office building and increases in utility expenses resulting from energy prices surging beyond expectations.」

「However, profit was significantly affected by delays in passing on some increases in material prices and by surging energy prices, resulting in an operating loss of ¥28 million, compared with operating profit of ¥26 million in the same period of the previous year.」

「The printing industry also continued to see signs of recovery, including a recovery in promotional demand. However, the operating environment remained difficult due to soaring energy and raw-material prices and the continued decline in demand for print media in the existing printing business.」

「However, the operating environment remained difficult due to surging prices for raw materials such as paper and film and energy such as electricity and gas, as well as continued declines in demand for paper-based media in the existing printing business.」

「Although signs of a recovery from the impact of COVID-19 are emerging, the operating environment is expected to remain difficult, with concerns over increasing earnings-related risks due to growing upward pressure on raw material, electricity and logistics costs.」

「The existing printing business continued to face a difficult operating environment due to declining demand for print media amid increased non-face-to-face communication and accelerated digitalisation resulting from changes in lifestyles, as well as the impact of soaring raw-material prices and other factors.」

「Although some signs of recovery emerged in the printing industry, the operating environment remained difficult due to delays in the recovery of demand, including promotional demand, caused by the prolonged impact of COVID-19, as well as rising raw-material prices and other costs.」

「In addition to delays in the recovery of tourism and promotional demand due to the prolonged impact of COVID-19, concerns remained over the risk of higher raw material prices and other costs, and the operating environment remained difficult.」

「Going forward, the operating environment is expected to remain difficult, with concerns over earnings-related risks including delays in the recovery of event and promotional demand due to the prolonged impact of COVID-19, declines in unit prices resulting from intensifying competition, and increases in raw material and logistics costs.」

「The printing industry continued to face a severe operating environment, as demand for print media declined while the e-book and internet advertising markets expanded, order prices fell and raw-material prices soared.」

「The printing industry continued to face a severe operating environment, as demand for print media declined while the e-book and internet advertising markets expanded, order prices fell and raw-material prices soared.」

「If the prices of these principal raw materials surge and the increase cannot be offset by reducing costs other than raw material costs, or cannot be passed on to selling prices, this may affect the performance of our Group.」

「During the third quarter of the current consolidated cumulative period, there were no new business or other risks, and no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「Meanwhile, the economic outlook remains uncertain due to concerns over trade friction resulting from the expansion of protectionism and rising crude oil prices, among other factors.」

「The outlook for the economy remains uncertain due to concerns over the expansion of protectionism in the United States and rising raw material prices, among other factors.」

「The prices of some of the principal raw materials used by our Group fluctuate according to market conditions. If the prices of these principal raw materials surge and the increase cannot be offset by reducing costs other than raw material costs, or cannot be passed on to selling prices, this may affect the performance of our Group.」