Risks Related to Product Sourcing, Purchase Price Fluctuations, and Private-Label Quality Control
First written in FY2021. 4 of 10 entries say "Worsened", first in FY2023-Q1. Latest entry: FY2027-H1.
Arclands moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 45 of 64 companies on the "Worse" side.
21 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「On the cost side, the increase in the cost ratio accompanying the surge in raw material prices became a factor weighing on profit.」
The increase in the cost ratio caused by soaring raw material prices materialized as a factor weighing on profit in the food-service business. The risk of higher procurement costs due to the weaker yen and higher raw material prices continues. - FY2026WorsenedAnnual report
「In the wholesale business, the gross profit margin declined as the cost ratio rose, while operating costs, including personnel expenses, also increased, resulting in」
Higher raw material and purchase prices materialized as a higher cost ratio and lower gross margin in the wholesale business. In the food-service business, higher raw material prices also raised the cost ratio and pressured profits. - FY2025Sourcing and price fluctuation risks continued despite the reduced private-brand targetAnnual report
「Most of these products are sourced from overseas suppliers. If logistics issues, circumstances affecting suppliers, or other factors make products difficult to obtain and prevent the company from maintaining appropriate inventories, or if purchase prices rise due to foreign exchange fluctuations or other factors, this could adversely affect the Group's performance and financial condition.」
Although the private-brand sales mix target was reduced to 27%, risks related to sourcing and purchase prices arising from overseas sourcing, logistics, supplier circumstances, and foreign exchange fluctuations continued to be disclosed. - FY2025-H1RestatedAnnual report
「The outlook for the economy remains uncertain as the prolonged situation in Ukraine, persistently elevated raw material and energy prices due to tensions in the Middle East, and sharp fluctuations in foreign exchange rates overlap.」
Risks related to sourcing and purchase prices arising from the situation in Ukraine, persistently elevated raw material and energy prices, and foreign exchange rate fluctuations continued to be disclosed, with tensions in the Middle East added as a contributing factor. - FY2024-Q3RestatedAnnual report
「The prolonged situation in Ukraine, the ongoing depreciation trend for the yen, and persistently elevated energy and raw material prices, among other factors」
Recognition of the risks of product sourcing and higher purchase prices, including the weaker yen and higher and persistently elevated energy and raw material prices, continued. - FY2024-Q1Continued elevated energy and raw material pricesAnnual report
「Persistently elevated energy and raw material prices due to the prolonged situation in Ukraine, among other factors」
The existing risks from the weaker yen and higher energy and raw material prices continued and were specified in greater detail as the prolonged situation in Ukraine and persistently elevated prices. - FY2023-Q3Cost increases in the food service segment specified in greater detailAnnual report
「Amid a challenging operating environment, including higher food ingredient prices due to the weaker yen and surging crude oil prices」
The existing risk of higher purchase prices due to the weaker yen and higher energy and raw material prices was specified in greater detail as higher food ingredient and crude oil prices in the food service segment. - FY2023-Q1WorsenedAnnual report
「A succession of product price increases accompanying the rapid depreciation of the yen and higher energy and raw material prices」
In addition to the existing risk of higher purchase prices due to overseas sourcing and foreign exchange fluctuations, higher energy and raw material prices and successive product price increases were identified as business conditions. - FY2022RestatedAnnual report
「The company also aims to achieve a 40% private-brand product sales mix by creating synergies with ビバホーム. Most of these products are sourced from overseas suppliers. If logistics issues, circumstances affecting suppliers, or other factors make products difficult to obtain and prevent the company from maintaining appropriate inventories, or if purchase prices rise due to foreign exchange fluctuations or other factors, this could adversely affect the Group's performance and financial condition.」
Risks related to overseas sourcing, logistics, suppliers, foreign exchange, and quality accompanying the 40% private-brand sales mix target continued to be described in specific terms. - FY2021First statedAnnual report
「We will continue to improve gross profit margins by integrating procurement and development functions, not only for private-label products.」
The company systematically disclosed for the first time a series of business operation risks involving difficulty sourcing products, higher raw material and fuel prices, logistics and foreign exchange risks for overseas private-brand products, quality defects, and product liability.