Deterioration of the business environment due to the Ukraine crisis and soaring raw-material prices
First written in FY2022-Q2. 5 of 14 entries say "Materialised", first in FY2022-Q3. Latest entry: 2026-08-10.
Cs-C. moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2025: 45 of 80 companies on the "Worse" side.
9 other companies' latest entry also says "Materialised".
- 2026-08-10MaterialisedEarnings
「On the other hand, the operating environment surrounding local businesses remains challenging, due to higher store operating costs resulting from chronic labor shortages and persistently high raw-material prices.」
Higher store operating costs caused by labor shortages and persistently high raw-material prices are cited as continuing factors behind the challenging operating environment. - FY2026-H1MaterialisedAnnual report
「Although the number of visitors to Japan from China stagnated against a backdrop of political and geopolitical risks arising from deteriorating Japan-China relations」
The company states that geopolitical risks actually emerged in the form of stagnation in the number of visitors to Japan from China, while travelers from South Korea, Taiwan, the United States and elsewhere drove the overall market. - FY2025MaterialisedAnnual report
「In the local business industry in which the group's primary customers operate, higher labor costs due to chronic labor shortages, together with rising food ingredient, logistics and utility costs, including rice, are putting pressure on profitability.」
The company states that labor shortages, labor costs and rising food ingredient, logistics and utility costs are actually putting pressure on the profitability of customer companies. - FY2025-H1MaterialisedAnnual report
「Higher raw material costs resulting from increasing geopolitical risks and the impact of yen depreciation are putting pressure on operating costs and causing profit margins to decline.」
The company states that geopolitical risks, yen depreciation and higher raw material costs are putting pressure on operating costs and have actually resulted in lower profit margins. - FY2024WorsenedAnnual report
「Challenges remain, including higher prices resulting from yen depreciation and soaring energy costs and higher labor costs due to chronic labor shortages, and operating conditions remain difficult. Although sales are recovering, securing profits is difficult. In particular, labor shortages are also a concern under the 2025 problem and are expected to become even more severe, creating increasingly difficult conditions.」
The company describes continuing yen depreciation, energy costs and labor costs, making it difficult to secure profits despite the recovery in sales, and notes the possibility that labor shortages will become more severe due to the 2025 problem. - FY2024-Q2WorsenedAnnual report
「Although demand for local businesses has recovered and increased as economic activity has normalized, challenges remain, including higher prices resulting from yen depreciation and soaring energy costs and higher labor costs due to chronic labor shortages, and operating conditions remain difficult. Although sales are recovering, securing profits is difficult. In particular, labor shortages are also a concern under the 2025 problem, and are expected to become even more severe, creating increasingly difficult conditions.」
Although demand is recovering, yen depreciation, soaring energy prices and rising labor costs continue, making it difficult to secure profits despite the recovery in sales. The company states that labor shortages may become even more severe in the future. - FY2024-Q1RestatedAnnual report
「The economic outlook remains highly uncertain due to higher prices resulting from yen depreciation and soaring energy costs, as well as increasing geopolitical risks such as the situation in Ukraine. These remain ongoing challenges, including the need to address them through price pass-through.」
The company states that yen depreciation, soaring energy prices, higher prices and geopolitical risks remain ongoing challenges. It also refers to responding through price pass-through. - FY2023Limited impact on customer traffic, but cost pressures persistAnnual report
「Price increases caused by heightened geopolitical risks, including the situation in Ukraine, the weaker yen and higher energy prices did not have as much adverse impact on customer traffic as feared. However, challenges remain, including higher costs, chronic labor shortages and declining demand due to changes in lifestyles, and the local business industry continues to face an uncertain operating environment.」
Although the impact of geopolitical risks, yen depreciation and soaring energy prices on customer traffic was not as significant as anticipated, the company continues to identify higher costs, labor shortages and declining demand as ongoing challenges. - FY2023-Q3WorsenedAnnual report
「Meanwhile, costs such as raw materials, utilities and labor have continued to rise as geopolitical risks have increased. It is difficult to offset rising costs through price pass-through alone. Consequently, many stores have seen sales increase but have not yet recovered their profits, and operating conditions remain difficult.」
In addition to the previously noted increases in raw material and energy prices, the company explicitly identifies rising labor costs and the difficulty of passing through higher prices, noting that many stores have not recovered profitability despite higher sales. - FY2023-Q2RestatedAnnual report
「However, the prolonged Russian invasion of Ukraine and global monetary tightening have continued to drive price increases associated with yen depreciation and higher energy prices, leaving the economic outlook uncertain.」
The company continues to describe an uncertain business environment due to the prolonged Russia-Ukraine situation, monetary tightening, yen depreciation, higher prices and soaring energy costs. - FY2023-Q1RestatedAnnual report
「Against a backdrop of the prolonged Russia-Ukraine situation and global monetary tightening, the yen has depreciated sharply and raw material prices have risen, and the outlook remains uncertain.」
The company continues to describe an uncertain business environment due to the Russia-Ukraine situation, monetary tightening, yen depreciation and soaring raw material prices. - FY2022WorsenedAnnual report
「As rising raw material and energy prices due to the situation in Ukraine, along with higher prices caused by the sharp depreciation of the yen, have forced an increasing number of our clients' stores to raise prices, there are concerns that consumer spending will decline, and the outlook remains uncertain.」
The description of the deteriorating business environment has expanded beyond the Ukraine situation and soaring raw material prices to include energy prices, yen depreciation, higher prices, price increases at client stores and concerns about weaker consumer spending. - FY2022-Q3MaterialisedAnnual report
「The outlook for the economy has become increasingly uncertain amid the emergence of geopolitical risks, including Russia's invasion of Ukraine, as well as soaring raw material and energy prices.」
In addition to the Ukraine situation and soaring raw material prices previously noted in the prior quarter, the company identifies Russia's invasion, the emergence of geopolitical risks and soaring energy prices as events that have actually occurred. - FY2022-Q2First statedAnnual report
「However, overseas, the situation in Ukraine has become increasingly complex. In addition to globally rising raw material prices, the local business industry continues to face difficult conditions, and the outlook is expected to remain uncertain.」
The deepening Ukraine crisis and globally rising raw material prices are cited for the first time as factors creating a difficult business environment for the local business industry.