Risk of increased costs due to rising raw material prices
First written in FY2020. 4 of 10 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2026-H1.
The whole theme swung hardest in 2022: 127 of 168 companies on the "Worse" side.
- FY2026-H1MitigatedAnnual report
「Gross margin improved 1.5 percentage points year on year to 51.4% as appropriate cost design at the procurement stage, selective price revisions and progress in inventory sell-through contributed to the improvement.」
Responses to higher raw material and procurement costs progressed through optimization of cost design, selective price revisions and inventory clearance, improving the gross profit margin to 51.4%. - FY2025MaterialisedAnnual report
「Affected by higher raw material prices and foreign exchange movements, the gross profit margin fell 0.8 percentage points from the previous fiscal year to 52.1%.」
The risk of higher costs from raw material prices and foreign exchange movements materialized in the full-year gross profit margin of 52.1%, down 0.8 percentage points from the previous fiscal year. - FY2024MitigatedAnnual report
「Despite the impact of higher raw material costs and foreign exchange movements, gross margin rose 0.7 percentage points from the previous fiscal year to 52.9% and remained firm, partly because excessive discounting was restrained.」
In response to higher costs from raw material prices and foreign exchange movements, the company restrained excessive discounting and maintained and improved the gross profit margin to 52.9%. - FY2024-Q3MitigatedAnnual report
「In response to high raw material prices and the continuing depreciation of the yen, the company proceeded to review the selling prices of approximately 30% of product numbers by approximately 10%, maintaining the gross profit margin at 53.3%, broadly in line with the previous fiscal year and up 0.1 percentage points year on year.」
The company proceeded to review the prices of some products in response to higher costs from raw material prices and the weaker yen, maintaining the gross profit margin at 53.3%, broadly in line with the previous fiscal year. - FY2024-Q1MaterialisedAnnual report
「As production lead times are 6–9 months, higher raw material prices for spring and summer products ordered last autumn caused gross margin to fall 2.1 percentage points year on year to 50.6%.」
Higher raw material prices affected the manufacturing costs of spring and summer products, and the gross profit margin fell 2.1 percentage points year on year to 50.6%. The risk of higher raw material prices has materialized as an actual decline in the profit margin. - FY2023-Q3MaterialisedAnnual report
「In response to the effects of high raw material prices and the continuing depreciation of the yen, the company proceeded to review the selling prices of some products. However, there was no evidence of customers holding back from purchases due to the price increases, and the company was able to secure sales volumes above expectations.」
Higher raw material prices and the weaker yen affected the review of selling prices for some products, and the risk of higher costs emerged in the form of actual pricing measures. Meanwhile, there was no evidence of customers holding back from purchases, and sales volumes exceeded expectations. - FY2023-Q2WorsenedAnnual report
「During the cumulative second quarter period, the Japanese economy remained uncertain due to surging global resource prices, supply-chain disruptions, and the rapid depreciation of the yen.」
It describes an environment of continued global resource price inflation and supply chain disruption, indicating continued exposure to risks related to raw material and procurement costs. - FY2023-Q1MaterialisedAnnual report
「Factors driving up manufacturing costs, including higher foreign exchange costs, raw material prices and logistics costs, have begun to affect a broad range of products.」
It explains that higher raw material prices and logistics costs have begun to affect the manufacturing costs of a broad range of products, indicating that the risk of higher costs has materialized. - FY2022WorsenedAnnual report
「In addition, concerns have arisen that accelerating global inflation and rising geopolitical risks will drive up raw-material prices and logistics costs, adversely affecting personal consumption.」
It describes soaring raw material prices and logistics costs as part of the current operating environment, indicating continued exposure to the risk of higher raw material and procurement costs. - FY2020First statedAnnual report
「The raw materials used in products manufactured and sold by the Group are exposed to fluctuations in resource prices. Unexpected increases in resource prices could increase raw material costs and affect the Group's business performance and other matters.」
It newly identifies increases in resource prices related to raw materials and higher raw material costs as risks.