Pressure on Existing-Store Operating Profit from Rising Electricity Rates
First written in FY2019. 3 of 8 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2022: 7 of 11 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The company curbed increases in electricity consumption by upgrading its refrigeration and freezer-case equipment and using renewable energy, among other measures.」
Amid continued increases in electricity rates and energy costs, the company curbed growth in electricity consumption by upgrading its refrigeration and freezer-case equipment and using renewable energy. - FY2025-Q1RestatedAnnual report
「The company was affected by weak consumer sentiment resulting from higher food prices caused by soaring energy and raw material prices, as well as by increased cost burdens, including personnel costs,」
Higher food prices resulting from soaring energy and raw material prices and increased cost burdens, including personnel costs, continued. - FY2024-Q3RestatedAnnual report
「The company was affected by weak consumer sentiment resulting from higher food prices caused by soaring energy and raw material prices, as well as by increased cost burdens, including personnel costs,」
The company stated that higher food prices resulting from soaring energy and raw material prices and increased cost burdens, including personnel costs, continued. - FY2024-Q1RestatedAnnual report
「Higher utilities and other costs due to soaring energy prices」
The company stated that higher utilities and other costs resulting from increased energy prices continued to occur. - FY2023MitigatedAnnual report
「In response to electricity rate increases resulting from higher energy unit prices, the company introduced high-efficiency refrigeration and freezer equipment and worked to conserve electricity, keeping total selling, general and administrative expenses at approximately the previous year's level.」
Although higher electricity rates continued to increase costs, the company stated that it kept total selling, general and administrative expenses approximately at the previous year's level through high-efficiency equipment and electricity conservation. - FY2023-Q2WorsenedAnnual report
「Utilities 2,866 3,882」
Utilities increased from ¥2,866 million in the same period of the previous year to ¥3,882 million, quantifying the increase in costs associated with higher energy prices. - FY2022MaterialisedAnnual report
「This was due to higher utility costs resulting from electricity rate increases associated with higher crude oil prices, among other factors.」
Electricity rate increases associated with higher crude oil prices were reflected in actual selling, general and administrative expenses as a factor driving higher facility costs. - FY2019First statedAnnual report
「Although the company worked to control selling, general and administrative expenses, including personnel costs, and improve its gross margin, substantial increases in electricity rates and other factors meant that it was unable to offset the negative impact, resulting in a significant decline in operating profit.」
The company first identified substantial increases in electricity rates as an independent risk factor, stating that they had actually contributed to the deterioration in existing-store operating profit.