Decline in Gross Profit and Profit Margins Due to Soaring Procurement Costs
First written in FY2016. 4 of 11 entries say "Mitigated", first in FY2017. Latest entry: FY2026.
Hasegawa moved to the "Worse" side of this theme in 2024, 3 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 22 of 32 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「On the profit front, we are introducing higher-value-added products and implementing phased price revisions in response to the continuing depreciation of the yen and higher raw-material and logistics costs. However, the growing tendency among consumers to protect their household finances has made it difficult to pass on a substantial portion of the cost increases.」
The company stated that, despite price revisions and other measures in response to the weaker yen and higher raw-material and logistics costs, it remains difficult to pass on a substantial portion of the cost increases. - FY2024WorsenedAnnual report
「On the profit front, the continuing depreciation of the yen, rising prices and higher logistics costs are expected to weigh on gross profit. Although we revise prices periodically, price increases have not yet fully offset higher costs.」
The weaker yen, rising prices and higher logistics costs are weighing on gross profit, and price revisions have not fully absorbed higher costs. - FY2024-Q1RestatedAnnual report
「The economic outlook remains uncertain, due to factors including soaring resource and energy prices stemming from the situation in Russia and Ukraine and higher raw-material prices resulting from the weaker yen.」
Cost-increase factors, including higher resource, energy and raw-material prices, and uncertainty surrounding the economic environment continue to be cited. - FY2023RestatedAnnual report
「Conditions remain difficult, partly due to tight supplies of raw materials and soaring prices for transportation and other costs.」
Tight supplies of raw materials and soaring transportation and other costs continue to be cited as factors affecting margins and the business environment. - FY2023-Q3RestatedAnnual report
「In response to higher prices for raw materials and transportation, among other items, resulting from changes in social conditions, and the deterioration in product margins caused by the significant depreciation of the yen, we will review planned spending on selling, general and administrative expenses and spend efficiently to secure the profit set out in the original plan.」
The deterioration in margins caused by the weaker yen and higher raw-material and transportation costs continues to be cited as an issue. - FY2023-Q2WorsenedAnnual report
「In response to higher prices for raw materials and transportation, among other items, resulting from changes in social conditions, and the deterioration in product margins caused by the significant depreciation of the yen, we will review planned spending on selling, general and administrative expenses and spend efficiently to secure the profit set out in the original plan.」
The deterioration in margins caused by higher raw-material and transportation costs and the significant depreciation of the yen was identified as a priority issue. - FY2018MitigatedAnnual report
「Although selling, general and administrative expenses increased due to proactive store investments and higher personnel expenses, operating income increased 4.4% from the previous fiscal year to ¥928 million as reforms to sales methods led to a higher gross margin.」
Higher costs from store investments and personnel expenses were absorbed through sales-method reforms and an improved gross margin, resulting in higher operating income both year on year and from the previous fiscal year. - FY2018-Q3MitigatedAnnual report
「Although selling, general and administrative expenses increased due to proactive store investments and higher personnel expenses, operating income increased 83.9% year on year to ¥509 million as improvements in sales methods led to a higher gross margin.」
The company reported higher costs from store investments and increased personnel expenses, while operating income rose 83.9% year on year due to improvements in sales methods and the gross margin. - FY2018-Q2MitigatedAnnual report
「Although selling, general and administrative expenses increased due to proactive store investments and sales-promotion initiatives, operating income increased 29.2% year on year to ¥478 million and ordinary income increased 48.1% to ¥461 million, as improvements in sales methods led to a higher gross margin. Quarterly net income was ¥370 million, up 98.5% year on year, partly due to a gain on the reversal of asset retirement obligations.」
Improvements in sales methods increased the gross margin, resulting in a 29.2% year-on-year increase in operating income. - FY2017MitigatedAnnual report
「Revenue was ¥19,378 million, down 0.1% from the previous fiscal year, while operating income increased 15.7% to ¥888 million, due to an improved gross margin and gains on the management of pension assets, among other factors.」
Whereas the previous fiscal year reported a decline in margins due to higher procurement costs, the current fiscal year reported an improved gross margin and higher operating income. - FY2016First statedAnnual report
「Operating income was ¥768 million, down 25.8% from the previous fiscal year, and ordinary income was ¥705 million, down 31.2%, due to lower gross profit resulting from higher procurement costs, increased personnel expenses associated with the transition to a new personnel system, higher costs resulting from a decline in pension plan assets under management, and increased costs related to growth investments such as new store openings and renovations. Net income was ¥353 million, down 15.0%, partly due to impairment losses on stores.」
Higher costs and growth investments materialized as factors behind the decline in profit for the fiscal year.