Higher material, service and personnel costs and insufficient pass-through to prices
First written in FY2024. 5 of 6 entries say "Materialised", first in FY2025-H1. Latest entry: 2026-07-31.
Striders moved to the "Worse" side of this theme in 2024.
The whole theme swung hardest in 2023: 3 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「The continued pressure on the cost structure from rising prices and soaring labor and energy costs, among other factors, resulted in higher sales but lower profit.」
At Kurashiki Royal Art Hotel, rising prices, labor costs and energy costs have emerged as factors reducing profit despite higher sales. - FY2025MaterialisedAnnual report
「In addition to soaring outsourcing costs, labor costs and utilities expenses, the company incurred temporary cost increases related to financing obtained from financial institutions during the period. Nevertheless, sales for the current consolidated fiscal year exceeded those of the previous fiscal year, enabling the company to improve profitability.」
Soaring materials and service prices, labor costs and utilities expenses have continued to put pressure on the hotel business's cost structure, and this has been reflected in actual results. - FY2025-H1MaterialisedAnnual report
「The rise in labor costs, power and utility costs, and other expenses attributable to the recent surge in prices temporarily weighed on profits.」
Soaring materials and service prices and labor costs have increased the cost burden of the hotel business and are occurring in practice as factors reducing profit. - FY2024First statedAnnual report
「The disruption of global supply chains, the sharp depreciation of the yen, wage increases in line with rising prices in Japan, and policy initiatives to eliminate excessive working hours have rapidly driven up the prices of all types of materials and services and labor costs, creating continued pressure on business operations not only in the hotel industry. If the company is unable to pass these increases through to appropriate service prices, the profitability of the hotel business may deteriorate, affecting the operating performance and financial position of the Group.」
The company newly identified rising materials and service prices and labor costs as a separate risk, indicating the potential for hotel profitability to deteriorate if these increases cannot be passed through to appropriate prices.