Foreign sourcing and foreign exchange risk associated with US dollar settlements
First written in FY2017. 3 of 7 entries say "Materialised", first in FY2022-Q3. Latest entry: FY2027-H1.
Takihyo 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: 43 of 67 companies on the "Worse" side.
20 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「In terms of profit, the gross profit margin declined as procurement costs rose due to the yen's depreciation and higher raw material prices, as well as increased use of alternative transportation such as ferries and air freight to avoid delays in ocean shipments caused by natural disasters.」
The yen's depreciation, together with higher raw material prices and increased use of alternative transportation, was reflected in actual results as higher procurement costs and a lower gross profit margin. - FY2025-H1WorsenedAnnual report
「In addition, because we rely on overseas sources for most of our products and make payments in U.S. dollars, the range of exchange rate fluctuations associated with the monetary policies of Japan, the United States and Europe has widened since August, making it increasingly difficult to set procurement costs and negotiate selling prices.」
States that, against the backdrop of overseas sourcing and dollar-denominated settlements, wider fluctuations in exchange rates and greater difficulty in setting procurement costs and negotiating selling prices are having an impact. - FY2022MaterialisedAnnual report
「Strongly affected by the rapid increases since the third quarter in raw material prices, the depreciation of the yen, ocean freight rates and labor costs at outsourced production plants, among other factors, the gross profit margin declined 2.8 percentage points year on year to 17.3%.」
States that yen depreciation, together with higher raw material prices, ocean freight rates and processing costs, was reflected in actual results as a decline in the gross profit margin. - FY2022-Q3MaterialisedAnnual report
「In addition to the decline in the gross profit margin resulting from higher raw material prices, yen depreciation, higher ocean freight rates and the shift of production to China, operating expenses including logistics costs increased with higher sales. As a result, the operating loss was ¥923 million (operating loss of ¥543 million in the same period of the previous year), the ordinary loss was ¥751 million (ordinary loss of ¥399 million in the same period of the previous year), and the quarterly net loss attributable to owners of the parent was ¥989 million (net loss of ¥710 million in the same period of the previous year).」
States that yen depreciation, together with higher raw material prices and other factors, was reflected in the actual loss as a factor behind the decline in the gross profit margin. - FY2019RestatedAnnual report
「Our group relies heavily on products sourced overseas, with settlements made primarily in U.S. dollars. To hedge foreign exchange risk, we enter into foreign exchange forward contracts each quarter based on purchase forecasts and within the scope of actual demand. However, unexpected changes in exchange rates may affect our group's results.」
Restates the foreign exchange risk associated with foreign sourcing and US dollar settlements, and hedging through quarterly forward exchange contracts. - FY2018RestatedAnnual report
「Our group relies heavily on products sourced overseas, with settlements made primarily in U.S. dollars. To hedge foreign exchange risk, we enter into foreign exchange forward contracts each quarter based on purchase forecasts and within the scope of actual demand. However, unexpected changes in exchange rates may affect our group's results.」
Restates the foreign exchange risk associated with foreign sourcing and US dollar settlements, and quarterly forward exchange contracts. - FY2017First statedAnnual report
「Our group relies heavily on products sourced overseas, with settlements made primarily in U.S. dollars. To hedge foreign exchange risk, we enter into foreign exchange forward contracts each quarter based on purchase forecasts and within the scope of actual demand. However, unexpected changes in exchange rates may affect our group's results.」
Identifies foreign exchange risk arising from dependence on overseas products and US dollar settlements, and cites quarterly forward exchange contracts as a response.