Fluctuations in raw material and energy prices and procurement risks
First written in FY2016. 14 of 33 entries say "Materialised", first in FY2019-Q2. Latest entry: 2026-11-10.
Nichiha moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2018: 6 of 18 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2026WorsenedAnnual report
「In addition, the heightened tensions in the Middle East may lead to further increases in crude oil and energy prices and create a risk that procuring certain raw materials may itself become difficult.」
In addition to the existing risk of fluctuations in raw material and energy prices, the company explicitly identified the risk of further price increases due to heightened tensions in the Middle East and difficulty procuring specific raw materials. - FY2025-H1MaterialisedAnnual report
「Regarding earnings, although increased revenue contributed to higher profits, the negative impact of higher logistics and material costs in the domestic exterior materials business and sluggish plant operations and logistics problems in the US exterior materials business could not be offset. Operating income was ¥3,435 million, down ¥368 million, or 9.7%, year on year.」
Higher logistics and material costs actually occurred as factors behind lower profits in the domestic exterior materials business, reducing operating income. - FY2024MitigatedAnnual report
「Although the effects of price revisions and lower energy prices contributed to higher profits, they were insufficient to offset the negative impact of persistently high material prices, higher fixed costs and sluggish operations at the second US plant.」
It was stated that material prices remained elevated, but part of the impact was absorbed by the effects of price revisions and lower energy prices. However, the impact of higher costs reduced full-year profit. - FY2024-Q3MaterialisedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, Japan's economy was recovering gradually, but companies continued to face conditions in which persistently high material and energy prices and foreign exchange fluctuations affected earnings.」
It was stated that material and energy prices remained elevated, continuing to affect corporate earnings. The impact of lower profits in the first half was not offset and also emerged as a factor behind the decline in cumulative operating income. - FY2024-Q1MitigatedAnnual report
「Higher material and energy costs were absorbed through the effects of price revisions.」
It was stated that material and energy prices continued to rise, but the higher costs during the quarter were absorbed through the effects of price revisions. - FY2023WorsenedAnnual report
「Higher costs resulting from soaring material and energy prices put pressure on profits, resulting in operating income of ¥11,704 million, down ¥872 million, or 6.9%, from the previous consolidated fiscal year.」
Soaring material and energy prices contributed to a 6.9% decline in full-year operating income, and the risk that the increases would not be adequately passed through to selling prices was also identified. - FY2023-Q3WorsenedAnnual report
「Higher costs resulting from soaring material and energy prices put pressure on profits, resulting in operating income of ¥8,409 million, down ¥2,058 million, or 19.7%, year on year.」
Pressure on profits from soaring material and energy prices continued, and operating income declined 19.7% year on year. The decline widened from the 17.4% decrease in operating income for the previous cumulative quarter. - FY2023-Q2WorsenedAnnual report
「Higher costs resulting from soaring material and energy prices put pressure on profits, resulting in operating income of ¥5,465 million, down ¥1,151 million, or 17.4%, year on year.」
Soaring material and energy prices put pressure on profits through higher costs, resulting in a 17.4% year-on-year decline in operating income. The domestic exterior materials business also posted lower profits due to higher energy and other material prices. - FY2023-Q1WorsenedAnnual report
「Regarding earnings, the US exterior materials business posted a profit increase of more than 40%, while in the domestic exterior materials business, soaring energy and other material prices put pressure on profits, resulting in operating income of ¥2,648 million, down ¥458 million, or 14.7%, year on year.」
Soaring energy and other material prices put pressure on profits in the domestic exterior materials business, resulting in a 14.7% year-on-year decline in operating income. - FY2022-Q3MaterialisedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, Japan's economy showed signs of recovery as economic activity picked up amid the continuing impact of COVID-19, but uncertainty about the outlook remained due to soaring material and energy prices. Regarding earnings, despite higher fixed costs accompanying increased production and higher material and energy costs, both the domestic and US exterior materials businesses posted higher profits on increased revenue.」
It was stated that soaring material and energy prices and higher costs actually occurred during the quarter, while higher profits from increased revenue in the domestic and US exterior materials businesses more than offset them. - FY2022-Q1MaterialisedAnnual report
「Domestic sales volumes for the ceramic-based exterior materials industry as a whole in the first quarter decreased 1.3% from the same period of the previous year, due to the time lag from housing starts as well as the impact of the wood shock. The basis includes 12 mm-thick products not covered by JIS standards.」
The impact of the wood shock surrounding raw materials and supplies was reflected as an actual factor behind the 1.3% decline in domestic sales volumes of ceramic-based exterior materials. - FY2021MitigatedAnnual report
「Production cost reductions, including energy costs, and reductions in operating fixed costs progressed in the core domestic business, but the impact of lower revenue and reduced inventory resulted in operating income of ¥12,029 million, down ¥1,069 million, or 8.2%, from the previous consolidated fiscal year.」
It was stated that production cost reductions, including energy costs, and reductions in operating fixed costs progressed, indicating measures to address price fluctuations. However, profits declined due to lower revenue and other factors. - FY2021-Q3MitigatedAnnual report
「Regarding earnings, although production cost reductions, including energy costs, and reductions in operating fixed costs progressed in the core domestic business, the impact of lower revenue and reduced inventory resulted in operating income of ¥8,714 million, down ¥1,335 million, or 13.3%, year on year.」
Progress in production cost reductions, including energy costs, and reductions in operating fixed costs was reported, indicating continued efforts to address cost fluctuations. - FY2021-Q2MitigatedAnnual report
「In the core domestic business, production cost reductions, including energy costs, and reductions in operating fixed costs progressed, although」
It was stated that production cost reductions, including energy costs, progressed, indicating continued measures to address fluctuations in raw material and energy prices. However, profits declined due to lower revenue and reduced inventory. - FY2021-Q1MitigatedAnnual report
「Regarding earnings, although production cost reductions, including energy costs, progressed in the core domestic business, the impact of lower revenue and reduced inventory resulted in operating income of ¥2,016 million, down ¥697 million, or 25.7%, year on year; ordinary income of ¥2,014 million, down ¥603 million, or 23.0%; and net income attributable to owners of the parent of ¥1,458 million, down ¥351 million, or 19.4%.」
It was stated that production cost reductions, including energy costs, progressed, indicating measures to address cost fluctuations. However, profits declined due to lower revenue and reduced inventory. - FY2020MaterialisedAnnual report
「Despite higher domestic logistics costs and fixed costs, production cost reductions, including energy costs, progressed, and increased revenue in the domestic exterior materials business and the US ceramic-based exterior materials business also contributed. Operating income was ¥13,098 million, an increase of ¥377 million, or 3.0%, from the previous consolidated fiscal year.」
It was stated that the continued increase in logistics costs was absorbed through production cost reductions, including energy costs, thereby mitigating the impact on earnings. - FY2020-Q3MaterialisedAnnual report
「Regarding earnings, despite higher domestic logistics costs, the domestic exterior materials business posted higher profits on increased revenue, while the US and China ceramic-based exterior materials businesses also posted higher profits. Operating income was ¥10,049 million, up ¥450 million, or 4.7%, year on year, and ordinary income was ¥10,373 million, up ¥505 million, or 5.1%.」
Although domestic logistics costs rose during the cumulative third quarter, the increase was absorbed by higher profits in the domestic exterior materials business and the US and China businesses. - FY2020-Q2MaterialisedAnnual report
「Regarding earnings, although logistics costs increased in Japan, operating profit rose as the domestic siding business benefited from higher sales and the U.S. and Chinese fiber-cement siding businesses also recorded higher profit. Operating profit increased to ¥6.076 billion, up ¥641 million, or 11.8%, year on year, and ordinary profit increased to ¥6.159 billion, up ¥438 million, or 7.7%.」
Although domestic logistics costs rose during the cumulative second quarter, the increase was absorbed by higher profits in the domestic exterior materials business and the US and China businesses. - FY2020-Q1MaterialisedAnnual report
「Regarding earnings, although energy and logistics costs increased in Japan, operating profit rose as the domestic siding business benefited from higher sales and the U.S. and Chinese fiber-cement siding businesses also recorded higher profit. Operating profit increased to ¥2.713 billion, up ¥332 million, or 14.0%, year on year.」
Although energy and logistics costs increased during the quarter, operating profit rose as the domestic siding business and the U.S. and Chinese businesses recorded higher profit. - FY2019MaterialisedAnnual report
「Profit declined due to higher energy and logistics costs in Japan, as well as upfront costs associated with strengthening the sales organization for the U.S. fiber-cement siding business, among other factors.」
Higher energy and logistics costs in Japan were also specifically cited as factors behind lower profit for the full fiscal year. - FY2019-Q3MaterialisedAnnual report
「The domestic business recorded lower profit due to the reversal of the effect of raising inventory levels through increased production in the previous year, as well as higher energy and logistics costs.」
Higher logistics costs, in addition to energy costs, were cited as factors behind lower profit in the domestic business, indicating that the impact of cost fluctuation risks on earnings is continuing. - FY2019-Q2MaterialisedAnnual report
「The domestic siding business recorded lower profit, in addition to lower sales, due to the reversal of the effect of raising inventory levels through increased production in the previous year and higher energy costs, among other factors.」
Higher energy costs were specifically cited as a factor behind lower profit in the domestic siding business, indicating that price fluctuation risks are affecting earnings. - FY2018RestatedAnnual report
「In recent years, the prices of these materials have tended to fluctuate substantially over short periods. This trend may continue, creating a risk that relatively inexpensive materials and other supplies can no longer be procured stably as in the past.」
The risks of fluctuations in raw material and energy prices and increasing difficulty in securing stable procurement continue to be disclosed. - FY2017RestatedAnnual report
「In recent years, the prices of these materials have tended to fluctuate substantially over short periods. This trend may continue, creating a risk that relatively inexpensive materials and other supplies can no longer be procured stably as in the past.」
The risks of fluctuations in raw material and energy prices and increasing difficulty in securing stable procurement continue to be disclosed. - FY2016First statedAnnual report
「In recent years, the prices of these materials have tended to fluctuate substantially over short periods. This trend may continue, creating a risk that relatively inexpensive materials and other supplies can no longer be procured stably as in the past.」
Paint, cement and pulp are identified as major raw materials and energy inputs, with supplier diversification, centralized procurement and a review of material formulations cited as countermeasures.