Deteriorating profitability in the food processing business due to soaring imported raw material procurement costs
First written in FY2023-Q1. 7 of 14 entries say "Worsened", first in FY2023-Q2. Latest entry: 2026-11-12.
OUG Holdings 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 2019: 15 of 23 companies on the "Worse" side.
11 other companies' latest entry also says "Materialised".
- FY2026MitigatedAnnual report
「Production costs increased due to soaring raw material prices and other factors. As a result, revenue was ¥4,612 million, or 117.0% year on year, and the segment loss was ¥52 million, compared with a segment loss of ¥73 million in the same period of the previous fiscal year.」
Although higher production costs due to soaring raw material prices continued, the food processing business's segment loss narrowed from ¥73 million to ¥52 million. - FY2026-H1Persistently high raw material costs, flat lossAnnual report
「The food processing business, which processes cooked rice for mass retailers, cut vegetables and frozen tuna and provides processing and cooking services for food-service operators, reported higher revenue following the addition of 1 consolidated subsidiary engaged in frozen tuna processing at the end of the previous fiscal year. However, production costs increased due to soaring raw material prices and other factors, resulting in revenue of ¥2,115 million, or 112.1% year on year, and a segment loss of ¥64 million, unchanged from the same period of the previous fiscal year.」
Although revenue increased following the addition of a consolidated subsidiary engaged in frozen tuna processing, higher production costs due to soaring raw material prices continued, and the segment loss remained unchanged from the same period of the previous fiscal year at ¥64 million. - FY2025Persistently high raw material costs, narrower lossAnnual report
「Production costs increased due to soaring raw material prices and other factors. As a result, revenue was ¥3,943 million, or 90.3% year on year, and the segment loss was ¥73 million, compared with a segment loss of ¥91 million in the same period of the previous fiscal year.」
Although higher production costs due to soaring raw material prices and other factors continued, the food processing business's loss narrowed from ¥91 million to ¥73 million. - FY2025-H1WorsenedAnnual report
「The food processing business reported revenue of ¥1,887 million, or 92.5% year on year, and a segment loss of ¥64 million, compared with a segment loss of ¥57 million in the previous fiscal year, due to lower revenue following the dissolution of 1 consolidated subsidiary and the impact of higher procurement costs for certain raw materials.」
In addition to lower revenue following the dissolution of 1 consolidated subsidiary, procurement costs for certain raw materials increased, and the food processing business's segment loss widened from ¥57 million to ¥64 million. - FY2024-Q3WorsenedAnnual report
「The food processing business, which processes seafood at food processing centers located near consumption areas, prepares cooked rice for mass retailers, processes cut vegetables, and provides processing and cooking services for food-service operators, reported revenue of ¥3,328 million, or 97.3% year on year, and a segment loss of ¥44 million, compared with a segment loss of ¥42 million in the same period of the previous fiscal year. Sales to hotels and the bridal market were recovering, but procurement costs for imported raw materials remained high and sales of cut vegetables declined, among other factors.」
Due to persistently high procurement costs for imported raw materials and lower sales of cut vegetables, the segment loss widened from ¥42 million in the same period of the previous fiscal year to ¥44 million. - FY2024-Q2WorsenedAnnual report
「The food processing business, which processes seafood at food processing centers located near consumption areas, prepares cooked rice for mass retailers, processes cut vegetables, and provides processing and cooking services for food-service operators, reported revenue of ¥2,039 million, or 97.4% year on year, and a segment loss of ¥57 million, compared with a segment loss of ¥41 million in the same period of the previous fiscal year. Sales to hotels and the bridal market were recovering, but procurement costs for imported raw materials remained high and rice prices, secondary materials and other costs increased.」
In addition to persistently high procurement costs for imported raw materials, rice prices, secondary materials and other costs increased, and the segment loss widened from ¥41 million in the same period of the previous fiscal year to ¥57 million. - FY2024-Q1WorsenedAnnual report
「The food processing business, which processes seafood at food processing centers located near consumption areas, prepares cooked rice for mass retailers, processes cut vegetables, and provides processing and cooking services for food-service operators, reported revenue of ¥986 million, or 95.8% year on year, and a segment loss of ¥25 million, compared with a segment loss of ¥20 million in the same period of the previous fiscal year, due to persistently high procurement costs for imported raw materials and higher rice prices, among other factors.」
In addition to persistently high procurement costs for imported raw materials, rice prices increased, and the food processing business's segment loss widened from ¥20 million in the same period of the previous fiscal year to ¥25 million. - FY2023WorsenedAnnual report
「The food processing business reported revenue of ¥4,406 million, or 94.7% year on year, and a segment loss of ¥77 million, compared with segment profit of ¥5 million in the same period of the previous fiscal year, due to a decline in sales volume caused by soaring procurement costs for imported raw materials and higher production costs, including utilities, and selling, general and administrative expenses, including transportation costs.」
In addition to soaring procurement costs for imported raw materials, production costs and selling, general and administrative expenses continued to rise, and the food processing business shifted from profit of ¥5 million in the previous fiscal year to a loss of ¥77 million. - FY2023-Q3WorsenedAnnual report
「The food processing business, which processes seafood at food processing centers located near consumption areas, prepares cooked rice for mass retailers, processes cut vegetables, and provides processing and cooking services for food-service operators, reported revenue of ¥3,421 million, or 96.8% year on year, and a segment loss of ¥42 million, compared with segment profit of ¥25 million in the same period of the previous fiscal year, due to a decline in sales volume caused by soaring procurement costs for imported raw materials and higher production costs and selling, general and administrative expenses.」
In addition to the decline in sales volume caused by soaring procurement costs for imported raw materials, production costs and selling, general and administrative expenses increased, and segment results shifted from profit of ¥25 million in the same period of the previous fiscal year to a loss of ¥42 million. - FY2023-Q2WorsenedAnnual report
「The food processing business reported revenue of ¥2,092 million, or 97.2% year on year, and a segment loss of ¥41 million, compared with a segment loss of ¥17 million in the same period of the previous fiscal year, due to a decline in sales volume caused by soaring procurement costs for imported raw materials, as well as higher production costs and selling, general and administrative expenses.」
In addition to the decline in sales volume caused by soaring procurement costs for imported raw materials, production costs and selling, general and administrative expenses increased, and the segment loss widened from ¥17 million to ¥41 million. - FY2023-Q1First statedAnnual report
「The food processing business reported revenue of ¥1,029 million, or 94.5% year on year, and a segment loss of ¥20 million, compared with a segment loss of ¥3 million in the same period of the previous fiscal year, mainly due to a decline in sales volume caused by soaring procurement costs for imported raw materials.」
Soaring procurement costs for imported raw materials materialized as a decline in sales volume and were reflected in lower revenue and a larger segment loss in the food processing business.