Earnings deterioration due to higher food raw material prices and sluggish price pass-through
First written in FY2017-Q1. 6 of 19 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2027-H1.
Kamei moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 29 of 49 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「In the food sales business of this segment, sales of premium Western confectionery ingredients and other products grew as a result of efforts to develop new customers and deepen existing relationships. However, profit margins declined because rice prices fell nationwide compared with the same period of the previous fiscal year, resulting in challenging conditions. As a result, revenue was ¥18.813 billion, down 1.0% year on year, and the operating loss was ¥424 million, compared with operating profit of ¥411 million in the same period of the previous fiscal year.」
The decline in rice prices led to lower profit margins, which emerged as an operating loss in the food business, a deterioration from operating profit in the same period of the previous fiscal year. - FY2026MitigatedAnnual report
「As a result, revenue was ¥39.141 billion, up 6.7% year on year, and operating profit was ¥671 million, up 686.7% year on year, due in part to progress in passing on increases in procurement prices.」
As price pass-through progressed, operating profit in the food business increased from ¥85 million in the previous fiscal year to ¥671 million. - FY2026-H1RestatedAnnual report
「Sales volumes of agricultural products increased due to nationwide growth in demand for rice, while sales of fully prepared foods for institutional customers grew as a result of efforts to develop new customers, deepen existing relationships, and strengthen sales, resulting in strong performance. In alcoholic beverage sales, although efforts were made to strengthen sales of differentiated products such as local sake, expand the range of imported wines handled, and develop new customers and deepen existing relationships, conditions were somewhat challenging due to declining sales volumes following manufacturers' price increases and soaring import prices caused by the weaker yen.」
While agricultural products and fully prepared foods improved, manufacturers' price increases and soaring import prices caused by the weaker yen continued to weigh on the earnings environment for alcoholic beverages. - FY2025MitigatedAnnual report
「In the food sales business of this segment, sales of fully prepared foods for institutional customers increased as a result of efforts to develop new customers, deepen existing relationships, and strengthen sales. The business also performed steadily because efforts were made to pass on increases in procurement prices in sales of premium Western confectionery ingredients and other products.」
Price pass-through progressed in food sales, improving results from an operating loss to operating profit of ¥85 million. In alcoholic beverages, however, sales competition and soaring import prices caused by the weaker yen continued. - FY2025-H1WorsenedAnnual report
「In the food sales business of this segment, sales of premium Western confectionery ingredients and fully prepared foods for institutional customers increased as a result of efforts to develop new customers, deepen existing relationships, and strengthen sales. However, conditions remained challenging because sales volumes of agricultural products declined due to the rice shortage and other factors.」
Although sales of premium Western confectionery ingredients and other products increased, agricultural product sales volumes declined due to the rice shortage, resulting in an operating loss of ¥302 million for the food business. - FY2024-Q3RestatedAnnual report
「In the alcoholic beverages business, sales volumes remained sluggish due to intensifying sales competition and soaring import prices caused by the weaker yen, despite efforts to strengthen sales of differentiated products such as local sake, expand the range of imported wines handled, and develop new customers and deepen existing relationships.」
While livestock products performed solidly in the food business, intensifying sales competition and soaring import prices caused by the weaker yen continued to weigh on the earnings environment for alcoholic beverages. - FY2024-Q2RestatedAnnual report
「In the food-related business of this segment, conditions remained challenging due to declining profit margins resulting from soaring raw material prices and higher logistics costs, despite efforts to develop new customers and deepen existing relationships.」
The decline in the food business's profit margins due to higher raw material prices and logistics costs continues to be cited. - FY2024-Q1WorsenedAnnual report
「In the food-related business of this segment, conditions remained challenging due to declining profit margins resulting from soaring raw material prices and higher logistics costs, despite efforts to develop new customers and deepen existing relationships.」
The food business deteriorated from an operating loss of ¥17 million in the same period of the previous fiscal year to an operating loss of ¥46 million due to continued declines in profit margins caused by higher raw material prices and logistics costs. - FY2023WorsenedAnnual report
「In the food-related business of this segment, although food-service demand recovered, conditions remained challenging due to declining profit margins resulting from soaring raw material prices and higher logistics costs.」
Despite the recovery in food-service demand, declining profit margins due to higher raw material prices and logistics costs resulted in an operating loss of ¥193 million for the food business for the full fiscal year. - FY2023-Q3RestatedAnnual report
「In the food-related business of this segment, although demand from restaurants and other food-service establishments recovered, sales volumes declined and conditions became challenging due to soaring raw material prices and higher logistics costs.」
Although food-service demand recovered, sales volumes continued to decline due to higher raw material prices and logistics costs. - FY2023-Q2WorsenedAnnual report
「In the food-related business of this segment, although demand from restaurants and other food-service establishments recovered, sales volumes declined and conditions became challenging due to soaring raw material prices and higher logistics costs.」
Although food-service demand recovered, sales volumes declined due to higher raw material prices and logistics costs, resulting in a deterioration in the earnings environment for the food business. - FY2023-Q1MaterialisedAnnual report
「In the alcoholic beverages business, sales volumes increased as a result of strengthening sales of differentiated products such as local sake, expanding the range of imported wines handled, and efforts to develop new customers and deepen existing relationships. However, conditions were somewhat challenging due to higher procurement prices caused by the weaker yen and other factors.」
Rather than the previously cited risk concerning price pass-through, higher procurement prices for alcoholic beverages caused by the weaker yen actually emerged as a source of pressure on the food business. - FY2018DroppedAnnual report
「Sales of staple rice in the agricultural products business performed steadily as a result of efforts to develop new customers and deepen existing relationships.」
The current-year description of the agricultural products business makes no mention of difficulties passing on higher procurement prices or declining profit margins, indicating that the risks noted previously have been removed. - FY2017RestatedAnnual report
「Although sales volumes of staple rice grew as a result of efforts to develop new customers and deepen existing relationships, conditions remained challenging because difficulties in passing on increases in procurement prices resulting from soaring brown rice prices caused profit margins to decline.」
The food business continued to face challenging conditions due to soaring brown rice prices, difficulty passing on higher procurement prices, and declining profit margins. - FY2017-Q3RestatedAnnual report
「In the food-related business, although sales volumes of staple rice grew as a result of efforts to develop new customers and deepen existing relationships, conditions remained challenging because difficulties in passing on increases in procurement prices resulting from soaring brown rice prices caused profit margins to decline.」
The agricultural products business continued to face challenging conditions due to soaring brown rice prices, difficulty passing on higher procurement prices, and declining profit margins. - FY2017-Q2WorsenedAnnual report
「Although sales volumes of staple rice grew as a result of efforts to develop new customers and deepen existing relationships, profit margins declined and conditions remained challenging because increases in procurement prices resulting from the sharp rise in brown rice prices were passed through to selling prices only after a delay.」
The sharp rise in brown rice prices was identified as the clear cause of higher procurement prices, and profit margins continued to decline due to delays in passing on the increases. - FY2017-Q1MaterialisedAnnual report
「Although sales volumes of staple rice grew as a result of efforts to develop new customers and deepen existing relationships, conditions remained challenging because the increase in procurement prices was not adequately passed through to selling prices.」
It states that the increase in procurement prices could not be adequately passed through to selling prices, resulting in challenging conditions for the food business.