Risk of Prolonged Inventory Holding Periods and Falling Prices for Raw Materials and Finished Products
First written in FY2020. 2 of 6 entries say "Worsened", first in FY2021. Latest entry: FY2026.
Nippi moved to the "Worse" side of this theme in 2021, 3 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 10 of 36 companies on the "Worse" side.
42 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The amount of inventory at the end of the period reflects the write-down of carrying value due to lower profitability, and the following inventory valuation loss, with a negative amount representing a reversal, is included in cost of sales: ¥(96) million」
The inventory valuation loss was reversed from the ¥254 million recorded in the previous fiscal year, reducing the loss burden from the risk of lower inventory profitability and falling prices during the current fiscal year. - FY2025MaterialisedAnnual report
「The amount of inventory at the end of the period reflects the write-down of carrying value due to lower profitability, and the following inventory valuation loss is included in cost of sales: ¥254 million」
The inventory valuation loss amounted to ¥254 million, up from ¥119 million in the previous fiscal year. The risk of lower inventory profitability and falling prices materialized as a loss. - FY2024MaterialisedAnnual report
「The amount of inventory at the end of the period reflects the write-down of carrying value due to lower profitability, and the following inventory valuation loss is included in cost of sales: ¥119 million」
An inventory valuation loss of ¥119 million was recognized, up from ¥60 million in the previous fiscal year. The risk of lower inventory profitability and falling prices materialized as an actual loss. - FY2023WorsenedAnnual report
「Merchandise and finished goods in the gelatin-related business: ¥3,076 million」
Merchandise and finished goods in the gelatin-related business increased from ¥2,622 million in the previous fiscal year to ¥3,076 million. The estimated net realizable value of collagen peptides was considered highly uncertain because of the effects of raw material prices, competition, demand and sales performance for new products from the new plant. - FY2021WorsenedAnnual report
「For merchandise and finished goods in the gelatin-related business, when the net realizable value at the end of the period is below the carrying amount, that net realizable value is used as the amount reported on the consolidated balance sheet.」
For ¥2,818 million of merchandise and finished goods in the gelatin-related business, the estimation of net realizable value based on demand, raw material prices and the competitive environment was identified as a significant accounting estimate. - FY2020First statedAnnual report
「However, if demand contracts and inventories remain unsold for an extended period, or if product selling prices decline significantly, the Group's operating results may be affected through the recognition of inventory valuation losses or disposal losses.」
The risks of inventories remaining unsold for an extended period and of inventory valuation losses and disposal losses due to shrinking demand and falling selling prices were separately identified.