Pressure on operating profit from higher cost of sales, including depreciation and fuel costs
First written in FY2018-Q1. 9 of 18 entries say "Mitigated", first in FY2019. Latest entry: FY2026.
Fushiki Kairiku Unso moved to the "Worse" side of this theme in 2017, 5 years before the typical company in this theme (2022).
The whole theme swung hardest in 2026: 6 of 12 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The textile products manufacturing business reported revenue of ¥2.297 billion, up ¥155 million, or 7.3%, year on year, as orders for automotive interior materials and apparel progressed steadily. Segment profit was ¥40 million, up ¥17 million, or 78.4%, year on year.」
Orders in the textile products manufacturing business progressed steadily, and segment profit increased 78.4%. The pressure on profit from higher cost of sales, which had been reported through the previous fiscal year, has eased in terms of earnings. - 2026-08-10MitigatedEarnings
「Revenue was ¥2.297 billion ... segment profit was ¥40 million, an increase of ¥17 million, or 78.4%, year on year.」
The pressure on profit in the Textile Products Manufacturing business eased as orders remained firm. - FY2025-H1MitigatedAnnual report
「The textile-product manufacturing business reported revenue of ¥1,016 million, down ¥41 million, or 3.9%, year on year, as orders for automotive interior materials remained sluggish. However, efforts to reduce the cost of sales brought segment profit to ¥0 million, compared with a ¥10 million loss in the same interim period of the previous year.」
The loss in the textile products manufacturing business, where orders continued to stagnate, narrowed from the same period of the previous year due to cost-of-sales reductions and reached near break-even. - FY2024MitigatedAnnual report
「The textile products manufacturing business reported revenue of ¥2.082 billion, up ¥254 million, or 13.9%, year on year, as orders for automotive interior materials partially recovered. However, it was unable to offset the increase in cost of sales, and the segment loss was ¥40 million, compared with a segment loss of ¥61 million in the previous year.」
Higher cost of sales continued, but the segment loss narrowed from ¥61 million to ¥40 million as revenue increased on the recovery in orders for automotive interior materials. - FY2024-Q3MitigatedAnnual report
「Revenue in the textile products manufacturing business was ¥1,580 million, up ¥256 million, or 19.3%, year on year, as some orders for automotive interior materials recovered. However, the segment recorded a loss of ¥15 million, compared with a loss of ¥57 million in the same quarter of the previous year, as it was unable to offset higher cost of sales.」
Higher cost of sales continued to be incurred, but the segment loss narrowed from ¥57 million in the same quarter of the previous year to ¥15 million as revenue increased on the recovery in orders. The impact of the pressure on profit moved toward mitigation. - FY2024-Q2MaterialisedAnnual report
「Revenue in the textile products manufacturing business was ¥1,057 million, up ¥187 million, or 21.5%, year on year, as some orders for automotive interior materials recovered. However, the segment recorded a loss of ¥10 million, compared with a loss of ¥42 million in the same quarter of the previous year, as it was unable to offset higher cost of sales.」
Higher cost of sales continued to be incurred. Although revenue increased as orders recovered, the textile products manufacturing business reported a segment loss of ¥10 million. The loss narrowed. - FY2024-Q1MaterialisedAnnual report
「Revenue in the textile products manufacturing business was ¥507 million, up ¥96 million, or 23.4%, year on year, as some orders for automotive interior materials recovered. However, the segment recorded a loss of ¥12 million, compared with a loss of ¥39 million in the same quarter of the previous year, as it was unable to offset higher cost of sales.」
Higher cost of sales was incurred. Although revenue increased as orders for automotive interior materials recovered, the textile products manufacturing business reported a segment loss of ¥12 million. The loss narrowed from the same quarter of the previous year. - FY2023WorsenedAnnual report
「Revenue from the textile products manufacturing business was ¥1.828 billion, up ¥96 million, or 5.6%, year on year, as orders for automotive interior materials partially recovered. However, the segment loss was ¥61 million, compared with a segment loss of ¥44 million in the same quarter of the previous year, due to higher expenses.」
Higher expenses were incurred, and the segment loss in the textile products manufacturing business widened from ¥44 million in the previous year to ¥61 million. - FY2023-Q3WorsenedAnnual report
「Revenue in the textile products manufacturing business was ¥1,323 million, up ¥13 million, or 1.0%, year on year, as some orders for automotive interior materials recovered. However, the segment recorded a loss of ¥57 million, compared with a loss of ¥55 million in the same quarter of the previous year, due to higher cost of sales resulting from higher resource prices.」
The increase in cost of sales resulting from higher resource prices was incurred, and the segment loss in the textile products manufacturing business widened from ¥55 million in the same quarter of the previous year to ¥57 million. - FY2021MitigatedAnnual report
「Cost of sales decreased 5.5% year on year to ¥10.697 billion due to reductions in outsourcing costs and other factors,」
The increase in cost of sales caused by fuel costs, depreciation and other expenses through the previous fiscal year changed, with cost of sales declining 5.5% year on year due to reductions in outsourcing costs and other factors. - FY2020-Q3MitigatedAnnual report
「Amid this business environment, the Group's revenue declined due in part to lower demand for textile-product manufacturing, but operating profit increased as it worked to reduce expenses.」
Operating profit increased due to expense reductions, and the company continues to address the pressure on profit caused by the previous increase in cost of sales. - FY2020-Q1MitigatedAnnual report
「Regarding expenses, the company successively replaced older cargo-handling machinery, sought to reduce equipment repair and fuel costs, and worked to improve operating efficiency and reduce costs.」
In response to the increase in cost of sales caused by depreciation, fuel costs and other expenses incurred in the previous fiscal year, the company states that it proceeded with replacing cargo-handling machinery and reducing equipment repair costs, fuel costs and other expenses. - FY2019MitigatedAnnual report
「Cost of sales decreased 2.3% year on year to ¥12.077 billion due to reductions in outsourcing costs and other factors, while selling, general and administrative expenses decreased 4.2% year on year to ¥1.207 billion due to lower personnel expenses and other factors.」
The pressure on profit from the increase in cost of sales seen in the previous fiscal year changed, with cost of sales declining 2.3% year on year due to reductions in outsourcing costs and other factors. - FY2019-Q1MaterialisedAnnual report
「Revenue from the port transportation business fell by ¥14 million, or 0.7%, year on year to ¥2,223 million as imports of raw materials and handling of used vehicles declined. Segment profit fell by ¥39 million, or 18.5%, to ¥173 million due to higher cost of sales.」
The increase in cost of sales is cited as a factor behind the 18.5% year-on-year decline in segment profit in the port transportation business. - FY2018MaterialisedAnnual report
「Operating profit was ¥735 million, down ¥33 million, or 4.4%, year on year, due to the increase in cost of sales.」
The increase in cost of sales was incurred and became evident over the full fiscal year in a 4.4% year-on-year decline in operating profit. - FY2018-Q3MaterialisedAnnual report
「Against this business backdrop, the company group actively pursued sales activities to attract port cargo while working to reduce expenses, but cost of sales increased due to higher fuel costs and other factors.」
Higher cost of sales resulting from increased fuel costs and other factors was incurred during the cumulative third-quarter period, and operating profit declined 8.1% year on year due to the increase in cost of sales. - FY2018-Q2MaterialisedAnnual report
「Against this business backdrop, the company group actively pursued sales activities to attract port cargo while working to reduce expenses, but cost of sales increased due to higher fuel costs and other factors.」
Higher cost of sales resulting from increased fuel costs and other factors was incurred during the cumulative second-quarter period. However, operating profit increased 5.3% year on year. - FY2018-Q1MaterialisedAnnual report
「Against this backdrop, our corporate group actively pursued sales activities to collect cargo for the ports while working to reduce expenses. However, cost of sales, including depreciation and fuel costs, increased. Operating profit was ¥222 million, down ¥12 million, or 5.2%, from the same quarter of the previous year, due to the increase in cost of sales.」
While working to reduce expenses, the company incurred higher cost of sales, including depreciation and fuel costs, which became evident in a 5.2% year-on-year decline in operating profit for the same quarter.