Risk to Business Continuity and Demand from COVID-19
First written in FY2020. 5 of 17 entries say "Mitigated", first in FY2023. Latest entry: FY2024.
Nippi moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 78 of 113 companies on the "Worse" side.
32 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「During the current consolidated fiscal year, Japan's economy continued on a gradual recovery trend as socioeconomic activity moved further toward normalization following the reclassification of COVID-19 as a Class 5 infectious disease, supported also by the recovery of inbound demand.」
The transition of COVID-19 to Class 5, normalization of socioeconomic activity and recovery in inbound demand continued to ease the risk of demand decline caused by infectious diseases. - FY2024-Q3MitigatedAnnual report
「During the nine months ended the third quarter of the current fiscal year, Japan's economy continued to recover after the COVID-19 pandemic.」
The economic recovery after the COVID-19 pandemic continued, and the risk of demand decline caused by infectious diseases was described as continuing to ease. - FY2024-Q2MitigatedAnnual report
「During the six months ended the second quarter of the current fiscal year, Japan's economy continued to recover gradually as the move toward the end of the COVID-19 pandemic accelerated, led by service industries such as leisure, travel and dining. Inbound demand also increased, partly because of the weaker yen.」
The risk of demand decline caused by COVID-19 was described as continuing to ease, supported by progress toward the end of the pandemic and the recovery of in-person services and inbound demand. - FY2024-Q1MitigatedAnnual report
「Despite the negative impact of higher prices, personal consumption continued to recover as the economy transitioned into the post-COVID period, led by in-person services such as leisure, travel and dining. Inbound demand also showed a rising trend, partly because of the weaker yen, and the gradual economic recovery continued as the move toward the end of the COVID-19 pandemic accelerated.」
The risk of demand decline caused by COVID-19 was described as continuing to ease, supported by the transition into the post-COVID period and the recovery of in-person services and inbound demand. - FY2023MitigatedAnnual report
「The impact of COVID-19 has eased day by day, and daily life has gradually returned to normal.」
The risk of demand decline caused by COVID-19 eased as restrictions on economic activity were largely lifted, events and in-person services recovered, and each segment recorded revenue growth. However, the possibility remained that the spread of infectious diseases could pose a downside risk to personal consumption. - FY2023-Q3Normalization is progressing, but the spread of COVID-19 remains a downside riskAnnual report
「Personal consumption also remains uncertain. With inflation weighing on real incomes, the spread of COVID-19 and seasonal influenza could currently represent downside risk factors for personal consumption, depending on their prevalence.」
While economic activity normalized and each segment recorded revenue growth, the spread of COVID-19 and seasonal influenza continued to be indicated as downside risks to personal consumption. - FY2023-Q2Recovery expected as the seventh wave subsides and restrictions are eased, but impact to continueAnnual report
「During the six months ended the second quarter of the current fiscal year, the leather-related business continued to struggle in terms of profitability, although nearly all reporting segments recorded revenue growth amid a gradual economic recovery.」
Nearly all reporting segments recorded revenue growth as the seventh wave of COVID-19 subsided and restrictions on activities and limits on accepting foreign tourists were eased. However, the leather-related business continued to struggle in terms of profitability. - FY2023-Q1Recovery and localized impacts coexistAnnual report
「While the sixth wave of COVID-19 subsided and the economy began to recover gradually, sales of leather for handles declined as shipments were delayed by the Shanghai lockdown. Logistics disruptions caused by the container shortage affecting organic grains were partly resolved, and demand for Italian food ingredients imported for the food-service industry showed signs of recovery as restrictions on activities were eased.」
The sixth wave of COVID-19 subsided, demand recovered as restrictions on activities were eased, and some logistics disruptions were resolved. However, localized impacts remained, including shipment delays caused by the Shanghai lockdown. - FY2022Impact to continue, with gradual recovery expectedAnnual report
「Based on information available when preparing its consolidated financial statements, the Group assumed that the effects of the spread of COVID-19 would continue in 2022 and then recover gradually, and made accounting estimates for the preparation of the consolidated financial statements for the current consolidated fiscal year, including the recoverability of deferred tax assets, recognition of the allowance for doubtful accounts, impairment of fixed assets and valuation of inventories.」
The outlook shifted from an assumption that the impact of COVID-19 would continue in 2022 to a forecast of gradual recovery thereafter, although uncertainty and the impact on accounting estimates remain. - FY2022-Q3Recovery trend, but impact continuesAnnual report
「During the nine months ended the third quarter of the current fiscal year, sales of leather products for shoes and imported food ingredients for commercial use continued to struggle. However, Nippi Collagen 100 performed well against a backdrop of growing health consciousness, and sales of collagen peptides to manufacturers in Japan and overseas began to recover.」
While leather products for shoes and imported food ingredients for commercial use continued to struggle because of the impact of COVID-19, health foods and collagen peptides showed signs of recovery. - FY2022-Q2RestatedAnnual report
「Sales of leather for shoes rose only slightly, as demand for leather shoes remained weak for both men's and women's shoes, while store operating rates were also low during the state of emergency.」
The low operating rates of stores during the state of emergency declared in response to COVID-19 and weak demand for leather shoes continued, and the impact on the leather-related business also continued. - FY2022-Q1MaterialisedAnnual report
「Although domestic inbound demand, demand for leather shoes and sales of food ingredients for commercial use remain weak, Nippi Collagen 100 continued to perform well against a backdrop of growing health consciousness. Inventory adjustments by health-food companies in Japan and overseas also ran their course, and collagen peptides returned to revenue growth.」
The impact of COVID-19 and the associated weakness in inbound demand, demand for leather shoes and sales of food ingredients for commercial use have continued. Meanwhile, demand recovered for some products, including health foods. - FY2021WorsenedAnnual report
「Based on information available when preparing its consolidated financial statements, the Group assumed that the effects of the spread of COVID-19 would continue in fiscal 2021 and then recover gradually, and made accounting estimates for the preparation of the consolidated financial statements for the current consolidated fiscal year, including the recoverability of deferred tax assets, recognition of the allowance for doubtful accounts and impairment of fixed assets.」
Based on the assumption that the impact of COVID-19 would continue in fiscal 2021, accounting estimates were made for deferred tax assets, the allowance for doubtful accounts and impairment of fixed assets. - FY2021-Q3WorsenedAnnual report
「Based on information available when preparing its quarterly consolidated financial statements, the Group assumed that the effects of the spread of COVID-19 would continue generally through March 2021 and made accounting estimates for the preparation of the consolidated financial statements for the current quarterly consolidated accounting period, including the recoverability of deferred tax assets, recognition of the allowance for doubtful accounts and impairment of fixed assets. This assumption involves a high degree of uncertainty, and if the effects of the spread of COVID-19 persist for an extended period, they may have a material impact on the consolidated financial statements from the following consolidated fiscal year onward.」
Accounting estimates were made for deferred tax assets, the allowance for doubtful accounts and impairment of fixed assets based on the assumption that the impact of COVID-19 would continue through March 2021. The possibility of a material impact on the financial statements from the following consolidated fiscal year onward if the impact continued for an extended period was indicated. - FY2021-Q2WorsenedAnnual report
「Based on information available when preparing its quarterly consolidated financial statements, the Group assumed that the effects of the spread of COVID-19 would continue generally through March 2021 and made accounting estimates for the preparation of the consolidated financial statements for the current quarterly consolidated accounting period, including the recoverability of deferred tax assets, recognition of the allowance for doubtful accounts and impairment of fixed assets. This assumption involves a high degree of uncertainty, and if the effects of the spread of COVID-19 persist for an extended period, they may have a material impact on the consolidated financial statements from the following consolidated fiscal year onward.」
Based on the assumption that the impact of COVID-19 would continue generally through March 2021, accounting estimates were made for deferred tax assets, the allowance for doubtful accounts and impairment of fixed assets. The possibility of a material impact on the financial statements if the impact continues for an extended period was also indicated. - FY2021-Q1MaterialisedAnnual report
「Against this backdrop, our Group was also affected by the COVID-19 pandemic. Sales of leather for shoes, leather for handles and Italian food ingredients declined significantly, while gelatin and peptide products also struggled because of the sharp drop in inbound consumption and lower export sales. Nippi Collagen 100, organic grains and the iMatrix series performed well.」
The impact of COVID-19 emerged as actual sales declines and challenging conditions in multiple businesses, particularly leather for shoes, leather for handles, Italian food ingredients, gelatin and peptides. Meanwhile, Nippi Collagen 100, organic grains and the iMatrix series performed well. - FY2020First statedAnnual report
「If an infectious disease outbreak becomes more serious, production and sales activities may be suspended if employees become infected, and changes in overall consumer trends may reduce demand for the Group's products, potentially affecting the Group's operating results. In addition, sales declined in the fourth quarter due in part to the impact of the spread of COVID-19.」
The possibility that employees could become infected with COVID-19, production and sales could be suspended, and demand could decline was identified as a separate risk for the first time, and actual sales declines in the leather-related business and other areas were also described.