Pressure on Profitability from Rising Raw Material Prices
First written in FY2016. 9 of 23 entries say "Materialised", first in FY2023-Q1. Latest entry: 2026-08-06.
The whole theme swung hardest in 2022: 122 of 167 companies on the "Worse" side.
- 2026-08-06MitigatedEarnings
「Although raw material prices and labor costs continued to rise, the gross profit margin increased due to the growth in sales of upper-midrange products, higher average package prices, and cost reductions. Together with a decline in the ratio of selling, general and administrative expenses, this resulted in operating income of ¥1,067 million, up 85.2% year on year, ordinary income of ¥1,256 million, up 59.7%, and net income attributable to owners of the parent for the quarter of ¥754 million, up 64.5%.」
The company states that although raw material prices and labor costs continued to rise, the resulting pressure on profit was absorbed by growth in sales of upper-midrange products, higher average package prices, cost reductions, and other measures. - FY2026MitigatedAnnual report
「Although raw material prices and labor costs continued to rise, the effects of selling price revisions and cost reductions became evident, raising the gross profit margin. Together with a decline in the ratio of selling, general and administrative expenses, this resulted in operating income of ¥3,948 million, up 90.7% year on year, ordinary income of ¥4,454 million, up 69.9%, and net income attributable to owners of the parent of ¥3,475 million, up 102.2%.」
The company states that while raw material prices, labor costs, and other costs continued to rise, the increase in the gross profit margin resulting from revised selling prices and cost reductions absorbed the pressure on earnings. - 2026-05-11MitigatedRevision of earnings forecasts
「Although raw material prices and labor costs continued to rise, the effects of selling price revisions and cost reductions became evident, raising the gross profit margin. Together with a decline in the ratio of selling, general and administrative expenses, this resulted in operating income of ¥3,948 million, up 90.7% year on year, ordinary income of ¥4,454 million, up 69.9%, and net income attributable to owners of the parent of ¥3,475 million, up 102.2%.」
The company states that although raw material prices and labor costs continued to rise, the impact on profit was absorbed by selling price revisions, cost reductions, and other measures. - FY2026-H1MitigatedAnnual report
「In terms of earnings, although raw material prices, labor costs, and other costs continued to rise, the gross profit margin increased due in part to the effects of revised selling prices becoming apparent, absorbing the increase in selling, general and administrative expenses. As a result, operating income increased 256.5% year on year to ¥1,351 million, ordinary income increased 170.0% to ¥1,663 million, and interim net income attributable to owners of the parent increased 292.2% to ¥1,005 million.」
The company states that while raw material prices, labor costs, and other costs continued to rise, the increase in the gross profit margin resulting in part from the effects of revised selling prices becoming apparent partially offset the pressure on earnings. - FY2025WorsenedAnnual report
「In addition to fluctuations in market conditions, foreign exchange rates, and interest rates, political instability overseas and changes in regulations and tax systems could cause procurement prices for raw materials and other inputs and energy costs to continue rising beyond expectations. If these increases cannot be fully absorbed through cost reductions from productivity improvements and value engineering, and the increases cannot be passed on to selling prices in a timely manner, the group's performance and financial condition could be affected.」
The company specifies risks of pressure on earnings, including surging raw material prices, foreign exchange and interest-rate movements, market conditions, political instability overseas, new regulations and tax-system changes, the inability to absorb costs through cost reductions, and delays in passing costs on to selling prices. - FY2025-H1MaterialisedAnnual report
「As a result, net sales for the current interim consolidated accounting period decreased by ¥4 million from the same period of the previous year to ¥63,531 million. In terms of earnings, the sharp rise in cost of sales due to surging prices of raw materials and energy, together with an increase in selling, general and administrative expenses, resulted in operating income declining 63.8% year on year to ¥379 million, ordinary income declining 53.7% to ¥616 million, and interim net income attributable to owners of the parent declining 66.1% to ¥256 million.」
Surging raw material and energy prices actually affected the current interim consolidated accounting period through an increase in cost of sales, resulting in declines in operating income, ordinary income, and interim net income. - FY2024MaterialisedAnnual report
「Cost of sales increased by 0.7 percentage points from the previous consolidated fiscal year, to 68.8%, or ¥88,046 million. The main factor behind the increase in cost of sales was the surge in raw material and energy prices.」
Surging raw material and energy prices led to a 0.7-percentage-point increase in the cost-of-sales ratio and cost of sales of ¥88,046 million, actually putting pressure on full-year earnings. - FY2024-Q3MaterialisedAnnual report
「Meanwhile, amid continuing instability in the international situation, energy and raw material and supply prices have continued to rise due to the weaker yen, leaving the outlook uncertain. As a result, net sales for the first nine months of the current consolidated cumulative period increased 3.5% year on year to ¥97,434 million. In terms of earnings, operating income declined 24.4% year on year to ¥2,397 million, ordinary income declined 21.5% to ¥2,822 million, and quarterly net income attributable to owners of the parent declined 30.5% to ¥1,812 million.」
While net sales increased amid continued surges in energy and raw material prices, operating income and other earnings measures declined year on year. - FY2024-Q2MaterialisedAnnual report
「In terms of earnings, the sharp rise in cost of sales due to surging prices of raw materials and energy resulted in operating income declining 40.4% year on year to ¥1,047 million, ordinary income declining 34.6% to ¥1,329 million, and quarterly net income attributable to owners of the parent declining 43.4% to ¥755 million.」
Surging raw material and energy prices actually affected performance through a sharp increase in cost of sales, resulting in declines in operating income, ordinary income, and quarterly net income attributable to owners of the parent. - FY2024-Q1MaterialisedAnnual report
「As a result, net sales for the first quarter of the current consolidated cumulative period increased 9.2% year on year to ¥31,882 million. In terms of earnings, the sharp rise in cost of sales due to surging prices of raw materials and energy resulted in operating income declining 22.8% year on year to ¥483 million, ordinary income declining 16.2% to ¥678 million, and quarterly net income attributable to owners of the parent declining 29.7% to ¥343 million.」
Surging raw material and energy prices actually affected the current quarter through a sharp increase in cost of sales, resulting in declines in operating income, ordinary income, and quarterly net income attributable to owners of the parent. - FY2023MaterialisedAnnual report
「Cost of sales increased by 2.1 percentage points from the previous consolidated fiscal year, to 68.1%, or ¥84,426 million. The main factor behind the increase in cost of sales was the surge in raw material and energy prices.」
Surging raw material and energy prices actually affected full-year performance through a 2.1-percentage-point increase in the cost-of-sales ratio and a decline in operating income and other earnings measures. - FY2023-Q3MaterialisedAnnual report
「As a result, net sales for the first nine months of the current consolidated cumulative period increased 10.0% year on year to ¥94,112 million. In terms of earnings, the sharp rise in cost of sales due to surging prices of raw materials and energy resulted in operating income declining 22.5% year on year to ¥3,171 million, ordinary income declining 19.4% to ¥3,594 million, and quarterly net income attributable to owners of the parent declining 11.0% to ¥2,607 million.」
Surging raw material and energy prices actually affected performance through a sharp increase in cost of sales, resulting in declines in operating income, ordinary income, and quarterly net income attributable to owners of the parent. - FY2023-Q2MaterialisedAnnual report
「As a result, net sales for the first six months of the current consolidated cumulative period increased 11.6% year on year to ¥61,310 million. In terms of earnings, the sharp rise in cost of sales due to surging prices of raw materials and energy resulted in operating income declining 18.9% year on year to ¥1,757 million, ordinary income declining 15.7% to ¥2,032 million, and quarterly net income attributable to owners of the parent declining 14.0% to ¥1,334 million.」
Surging raw material and energy prices actually affected performance through a sharp increase in cost of sales, resulting in declines in operating income, ordinary income, and quarterly net income attributable to owners of the parent. - FY2023-Q1MaterialisedAnnual report
「As a result, net sales for the first quarter of the current consolidated cumulative period increased 8.6% year on year to ¥29,206 million. In terms of earnings, the sharp rise in cost of sales due to surging prices of raw materials and energy resulted in operating income declining 42.5% year on year to ¥626 million, ordinary income declining 34.5% to ¥809 million, and quarterly net income attributable to owners of the parent declining 35.1% to ¥488 million.」
The company states that surging raw material and energy prices actually affected performance through a sharp increase in cost of sales and declines in operating income and other earnings measures. - FY2022RestatedAnnual report
「The operating environment surrounding the group remains unpredictable. The timing of the end of the COVID-19 pandemic cannot be foreseen, leaving both the domestic and global economies uncertain, while shortages and surging prices of raw materials and supplies amid unstable global conditions continue to pose concerns.」
The company continues to identify shortages and surging prices of raw materials and supplies as concerns in its earnings environment. - FY2022-Q3RestatedAnnual report
「However, the outlook remains uncertain due in part to the effects of global shortages and surging prices of raw materials and supplies.」
The company identifies global shortages and surging prices of raw materials and supplies as additional concerns affecting earnings, following the previously identified risks. - FY2022-Q2WorsenedAnnual report
「The outlook remains uncertain, with concerns including the effects of global shortages and surging prices of raw materials and supplies.」
In addition to the previously identified risk of surging raw material prices, the company specifically identifies global shortages and surging prices of raw materials and supplies as concerns. The risks are not quantified, and no losses are disclosed. - FY2021RestatedAnnual report
「In addition, if raw material prices surge, this could affect the performance of the group.」
The company continues to identify the impact of surging raw material prices on performance as a risk. - FY2020RestatedAnnual report
「In addition, if raw material prices surge, this could affect the performance of the group.」
The company continues to identify the impact of surging raw material prices on performance as a risk. - FY2019RestatedAnnual report
「In addition, if raw material prices surge, this could affect the performance of the group.」
The company continues to identify the impact of surging raw material prices on performance as a risk. - FY2018RestatedAnnual report
「In addition, if raw material prices surge, this could affect the performance of the group.」
The company continues to identify the impact of surging raw material prices on performance as a risk. - FY2017RestatedAnnual report
「In addition, if raw material prices surge, this could affect the performance of the group.」
The company continues to identify the impact of surging raw material prices on performance as a risk. - FY2016First statedAnnual report
「In addition, if raw material prices surge, this could affect the performance of the group.」
The company identifies rising raw material prices as a factor that could affect performance.