Pressure on Profitability from Rising Raw Material Prices
First written in FY2022. 5 of 10 entries say "Worsened", first in FY2023-Q1. Latest entry: 2026-04-14.
The whole theme swung hardest in 2022: 122 of 167 companies on the "Worse" side.
- 2026-04-14WorsenedResults briefing materials
「Because the trend of declining real income due to persistent price inflation is expected to continue for the time being, among other factors」
The company explicitly identified the expected continuation of inflation and declining real income as background to concerns over deterioration in the mid- to high-end goods market and the plan revision. - FY2025RaisedAnnual report
「Due to changes in global economic conditions and fluctuations in supply and demand, the prices of textile raw materials and auxiliary materials used by the Group may fluctuate significantly. The Group is working to pass through appropriate price increases and reduce costs, but a sharp rise in raw material prices or their prolonged persistence at elevated levels could have a material impact on the Group’s financial position, operating results and cash flows.」
The risk of soaring raw material prices is presented not only as an increase caused by global inflation, but also as price fluctuations resulting from economic conditions and changes in supply and demand, and the potential for a material impact is explicitly identified as a particularly important risk. - FY2025-Q1RestatedAnnual report
「During the cumulative first quarter ended 31 May 2024 (1 March 2024 to 31 May 2024), Japan's economy continued to recover moderately after emerging from the effects of the three-year COVID-19 pandemic, despite the impact of higher prices caused by yen depreciation and surging resource prices.」
It reaffirms its recognition that the effects of higher prices associated with the weaker yen and soaring resource prices continue, but provides no new specifics on passing through raw material costs or the impact on operating results. - FY2024RaisedAnnual report
「(1) Particularly important risks ① Soaring raw material prices: Raw material prices for apparel products continue to rise due to the global inflationary trend.」
The classification of soaring raw material prices has been elevated from an existing important risk to a “particularly important risk” this time. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter ended 31 August 2023 (1 March 2023 to 31 August 2023), Japan's economy continued to recover moderately despite the ongoing effects of yen depreciation and high resource prices, as the impact of COVID-19 eased further following its reclassification to Category 5 and normalization progressed.」
It reiterates its recognition that the external environment continues to be affected by the weaker yen and higher resource prices, but provides no new specifics on the effect of soaring raw material prices on operating results. - FY2023WorsenedAnnual report
「Raw material prices for apparel products continue to rise due to the global inflationary trend, including the effects of the situation in Ukraine. The Group is currently passing these increases through to appropriate product prices, but if raw material prices continue to rise, this may lead to further product price increases and affect the Group's financial position, operating results and cash flows.」
It identifies continued soaring raw material prices as a particularly important risk, stating that although the Company is passing the increases through to appropriate prices, further product price increases may affect its financial position, operating results and cash flows. - FY2023-Q3WorsenedAnnual report
「In addition, in Europe and the United States, continued policy-rate hikes by central banks to curb inflation driven by rising energy and food prices are now expected to result in terminal rates settling at high levels. Along with persistently high foreign-exchange volatility, this has created concern about the outlook for the economy and consumption.」
Regarding risks relating to raw materials, costs and the economic environment, it cites rising energy and food prices, continued rate hikes, expectations for high terminal rates and high foreign-exchange volatility. - FY2023-Q2WorsenedAnnual report
「There is still no clear path toward resolving the situation in Ukraine, supply chain disruption caused by lockdowns under China's zero-COVID policy is taking time to resolve, and central banks in various countries have been raising policy rates to curb inflation at a faster pace than expected due to rising energy and food prices」
Regarding risks relating to raw materials, costs and the economic environment, it continues to identify rising energy and food prices, rapid rate hikes and prolonged supply chain disruption as worsening factors. - FY2023-Q1WorsenedAnnual report
「In addition, as energy and food prices have risen, central banks in various countries have been raising policy rates to curb inflation at a faster pace than expected」
Regarding price increase risks, it identifies rising energy and food prices and rapid policy-rate hikes as new factors worsening costs and the economic environment, in addition to the existing risk relating to soaring raw material prices. - FY2022First statedAnnual report
「However, if raw material prices continue to rise, there will be limits to the extent to which the increases can be absorbed, which may affect the Group's financial position, operating results and cash flows.」
It newly states that, if raw material prices continue to rise, there will be limits to the extent to which the increases can be absorbed through measures such as passing them on to customers, potentially affecting the financial position, operating results and cash flows.