Difficulty Passing on Higher Procurement Costs to Selling Prices and Raw Material and Foreign Exchange Risks

「さらに仕入コストの高騰および物流コストの上昇など、大変厳しい環境下で推移いたしました。」

「In addition, the continuing rise in procurement costs caused a pronounced decline in profit margins, and gross profit fell 3.7% from the previous fiscal year to ¥1,931 million.」

「Under these circumstances, our group worked to reduce selling, general and administrative expenses, but lower demand and soaring procurement costs resulted in the recognition of a loss.」

「The continuing rise in procurement costs caused a pronounced decline in profit margins, and gross profit fell 8.0% from the previous fiscal year to ¥2,004 million.」

「Profits declined substantially as lower demand and soaring procurement costs caused a pronounced decline in profit margins.」

「In addition, with the “2024 Problem” facing the transport and logistics industries approaching, improving transport and storage efficiency, including addressing higher freight rates, securing warehouses near consumer markets and maintaining delivery lead times, has become an urgent issue.」

「In addition, improving transport and storage efficiency has become an urgent priority in response to further increases in logistics costs resulting from the “Logistics 2024 Problem.”」

「In the current fiscal year, demand for forms and other business documents declined significantly as digitalization progressed, causing sales volume of information paper to fall below the previous year. However, net sales increased from the previous fiscal year due to a net increase in sales of paperboard and packaging paper by the newly established industrial paper division, as well as progress from the second half of the fiscal year in selling at appropriate prices following price revisions.」

「In the domestic paper distribution industry as well, conditions are becoming increasingly challenging as paper manufacturers implement substantial price revisions due to soaring raw material and fuel prices and rising logistics costs, while the shift toward digital media, particularly in the information and advertising sectors, accelerates.」

「In Japan’s paper distribution industry, soaring raw-material and fuel prices and higher logistics costs led paper manufacturers to implement two rounds of substantial price revisions, and the pass-through of these increases into selling prices progressed. However, as manufacturing costs have remained above expected levels, further price revisions are also anticipated.」

「In Japan’s paper distribution industry, soaring raw-material and fuel prices and higher logistics costs, together with two rounds of substantial price revisions by paper manufacturers, have made the pass-through of these increases into selling prices an urgent priority.」

「Although the spread of the novel coronavirus has continued for more than 2 years and a gradual easing of infection-control measures and other restrictions is expected as society seeks to coexist with economic activity, the economic environment is expected to remain challenging, with soaring raw-material and fuel prices and continued foreign-exchange instability due to the worsening situation in Ukraine.」

「In addition, paper manufacturers have announced substantial price revisions to absorb soaring raw-material and fuel prices and higher logistics costs, while the paper distribution industry likewise faces the urgent issue of passing these increases on to selling prices.」

「In addition, profits are expected to be squeezed by soaring raw-material and fuel prices and higher logistics costs, creating a situation in which selling-price revisions will be unavoidable.」

「Depending on market conditions, there may be situations in which increases in procurement costs cannot be passed on to selling prices at the same time. In addition, Japan relies heavily on imports for the raw materials used in paper and paperboard products, and product prices are also inevitably affected by crude oil prices and foreign-exchange fluctuations.」

「Under these circumstances, our group placed the highest priority on employee safety, worked to prevent the spread of infection in line with government policy, actively introduced mobile working, recommended working from home and pursued sales at appropriate prices.」

「Net sales amounted to ¥15,748 million, up 1.8% year on year, despite sales volume falling below the previous year, due to the price revisions taking hold and the company maintaining sales at appropriate prices. Gross profit also rose 3.2% year on year to ¥2,108 million for the same reasons.」

「Although the price revisions took hold and each manufacturer worked to resolve supply shortages,」

「As a result, sales volume exceeded the previous year for both printing paper and information paper, while net sales also improved as the price revisions took hold.」

「As a result, although securing inventory was difficult, sales volume exceeded the previous year for both printing paper and information paper, while net sales also improved as the price revisions took hold.」

「In addition, paper manufacturers implemented substantial price revisions for printing paper from January to cover higher raw-material, fuel and logistics costs, and the price revisions took hold against a backdrop of tight supply and demand.」

「In the paper industry, the effects of successive natural disasters have persisted, leaving inventories tight. In addition, paper manufacturers have implemented substantial price revisions since January 2019 to cover increases in raw-material, fuel and logistics costs.」

「In the paper industry, the effects of successive natural disasters continue to be felt in the form of tight inventories due to infrastructure shutdowns and disruptions to logistics. Along with higher raw-material prices and logistics costs, pricing policies are being closely watched.」

「Concerns have arisen over a global contraction in trade caused by rising crude oil prices and the protectionist trade and foreign policies of the United States, creating a situation that permits no complacency.」

「Amid an extremely challenging environment marked by structurally weak domestic demand for paper and prolonged difficulty in obtaining price revisions from manufacturers, our group continued to focus on small-lot demand in the wholesale sector and actively pursued sales, with selling at appropriate prices as its primary objective.」

「Paper manufacturers are promoting price revisions to offset higher costs resulting from rising raw material and fuel prices, and passing these increases through to selling prices has become the most important issue in the paper distribution industry.」

「As a result, sales volume increased, but lower selling prices resulted in lower net sales.」

「Depending on market conditions, there may be cases in which increases in procurement costs cannot be passed through to selling prices at the same time. In addition, Japan relies heavily on imports for the raw materials used in paper and paperboard products, and product prices are inevitably affected by crude oil prices and exchange rate fluctuations.」