Product Quality Issues and Credit and Liability Risks
First written in FY2016. 5 of 10 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2026: 12 of 60 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「Sales have been sluggish because of the impact of reports concerning products of certain business partners and the occurrence of cyber incidents, creating sales-related challenges.」
Reports concerning products of business partners materialized as sluggish sales, and the impact of product- and health-related reputational risk continued. - FY2025MaterialisedAnnual report
「Domestic sales in the peptide segment declined because of intensifying price competition and the impact of health damage issues involving health food supplements that occurred in March last year.」
Health damage issues involving health food supplements materialized in the form of lower domestic peptide sales. - FY2025-H1MaterialisedAnnual report
「Sales of gelatin for prepared foods, pharmaceutical applications and nursing care applications were strong. However, sales for capsules used in health foods were affected by reports of health damage, while sales for gummy products struggled because of intensifying competition, resulting in lower revenue.」
The impact of reports of health damage on capsules for health foods materialized as weak sales and lower revenue, bringing reputational and consumer sentiment risks related to health foods to the fore. - FY2024WorsenedAnnual report
「There are concerns that consumer sentiment toward health foods may decline as a result of recent health damage issues involving foods with function claims. We will work to maintain sales by providing safe and reliable products while making further efforts to respond carefully to customers.」
Against the backdrop of health damage issues involving foods with function claims, a decline in consumer sentiment toward health foods generally was identified as a new specific concern. - FY2021RestatedAnnual report
「In addition to these quality controls, we maintain product liability insurance (PL insurance) and other coverage. However, depending on the circumstances, there is no guarantee that PL insurance and other coverage will cover the full amount of any compensation payable, and this could result in reputational damage to the Group and affect operating performance.」
While addressing these risks through quality control, pre-shipment inspections and PL insurance, the company continues to recognize the possibility that reputational damage and losses may not be fully covered. - FY2020RestatedAnnual report
「In addition to these quality controls, we maintain product liability insurance (PL insurance) and other coverage as a precaution. However, depending on the circumstances, there is no guarantee that PL insurance and other coverage will cover the full amount of any compensation payable, and this could result in reputational damage to the Group and affect operating performance.」
While addressing these risks through quality control, pre-shipment inspections and PL insurance, the company continues to recognize the possibility that reputational damage and losses may not be fully covered. - FY2019RestatedAnnual report
「In addition to these quality controls, we maintain product liability insurance (PL insurance) and other coverage as a precaution. However, depending on the circumstances, there is no guarantee that PL insurance and other coverage will cover the full amount of any compensation payable, and this could result in reputational damage and affect operating performance.」
While addressing these risks through quality control, pre-shipment inspections and PL insurance, the company continues to recognize the possibility that losses may not be fully covered. - FY2018RestatedAnnual report
「In addition to these quality controls, we maintain product liability insurance (PL insurance) and other coverage as a precaution. However, depending on the circumstances, there is no guarantee that PL insurance and other coverage will cover the full amount of any compensation payable, and this could result in reputational damage and affect operating performance.」
While addressing these risks through quality control, pre-shipment inspections and PL insurance, the possibility that losses may not be fully covered has been reiterated. - FY2017RestatedAnnual report
「In addition to these quality controls, we maintain product liability insurance (PL insurance) and other coverage as a precaution. However, depending on the circumstances, there is no guarantee that PL insurance and other coverage will cover the full amount of any compensation payable, and this could result in reputational damage and affect operating performance.」
While addressing these risks through compliance with laws and standards, raw material and process controls, pre-shipment inspections and PL insurance, the possibility that reputational damage and losses may not be fully covered was reiterated. - FY2016First statedAnnual report
「In addition to these quality controls, we maintain product liability insurance (PL insurance) and other coverage as a precaution. However, depending on the circumstances, there is no guarantee that PL insurance and other coverage will cover the full amount of any compensation payable, and this could result in reputational damage and affect operating performance.」
The company addresses these risks through compliance with laws and standards, raw material and process controls, pre-shipment inspections and PL insurance, but the possibility remains that losses may not be fully covered.