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New Delhi, <keyword id="19971670" type="General" weightage="20" keywordseo="JSW-Steel" source="keywords" meta.keywordsubtype="org" meta.entityname="JSW Steel" meta.hostid="261" meta.entityid="JSW Steel">JSW Steel</keyword> has posted a 65 per cent fall in consolidated <keyword id="19942166" type="General" weightage="20" keywordseo="net-profit" source="keywords">net profit</keyword> at Rs 1,322 crore for the March 2024 quarter impacted by <keyword id="21700627" type="General" weightage="20" keywordseo="raw-materials-costs" source="keywords">raw materials costs</keyword> and some other expenses. It had clocked Rs 3,741 crore net profit during the fourth quarter of the last fiscal, the company said in an exchange filing on Friday. The company's total income also fell to Rs 46,511.28 crore from Rs 47,427 crore in January-March FY23. During the period under review, its expenses stood at Rs 44,401 crore, as against Rs 43,170 crore a year ago. Among the expenses, the cost of raw materials consumed by the company surged to Rs 24,541 crore from 23,905 crore in the January-March FY23. While "other expenses" increased to Rs 7,197 crore from Rs 6,653 crore in the year-ago period. In FY24, the net profit rose to Rs 8,973 crore from Rs 4139 crore in FY23. The income for the full year stood at Rs 1,76,010 crore, up from Rs 1,66,990 crore. The board of directors of the company announced a final dividend of Rs 7.30 for FY24. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-edge-50-fusion-vs-oneplus-nord-ce-4-price-specs-and-features-compared/slidelist/110197390.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-edge-50-fusion-vs-oneplus-nord-ce-4-price-specs-and-features-compared/slidelist/110197390.cms" target="_blank">Motorola Edge 50 Fusion vs OnePlus Nord CE 4 – price, specs and features compared</a><a href="https://www.businessinsider.in/india/news/average-housing-prices-up-10-in-jan-mar-across-the-top-eight-cities/articleshow/110181627.cms" target="_blank"></a> <a href="https://www.businessinsider.in/india/news/average-housing-prices-up-10-in-jan-mar-across-the-top-eight-cities/articleshow/110181627.cms" target="_blank">Average housing prices up 10% in Jan-Mar across the top eight cities</a><a href="https://www.businessinsider.in/tech/mobile/news/motorola-edge-50-fusion-with-144hz-poled-display-500mah-battery-launched-starting-at-22999/articleshow/110170762.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/motorola-edge-50-fusion-with-144hz-poled-display-500mah-battery-launched-starting-at-22999/articleshow/110170762.cms" target="_blank">Motorola Edge 50 Fusion with 144Hz pOLED display, 5,00mAh battery launched starting at ₹22,999</a>

JSW Steel Q4 net profit falls 65% to ₹1,322 crore

<ul class="summary-list"><li>The cost of <keyword id="11956498" type="UNKNOWN" weightage="60" keywordseo="raw-materials" source="Orion">raw materials</keyword> needed to make electric vehicles is rising, CNBC reported.</li><li>The average cost in raw materials was around $8,255 per vehicle in May, the outlet reported.</li></ul>The cost of producing electric vehicles soared in the last two years, with the price of the raw materials needed to build the <keyword id="20632" type="UNKNOWN" weightage="60" keywordseo="cars" source="Orion">cars</keyword> more than doubling since the start of the pandemic, <a href="https://www.cnbc.com/2022/06/22/electric-vehicle-raw-material-costs-doubled-during-pandemic.html">CNBC reported</a> citing research from consulting firm AlixPartners. The average cost of raw materials — including the cobalt, nickel, and lithium needed to make EV batteries — was around $8,255 per vehicle in May, the outlet reported, citing AlixPartners' research.That cost represents an increase of more than 140% from the $3,381 in raw materials it cost to make an electric car in March 2020.High raw material costs come amid ongoing supply chain disruptions across the EV industry. The war in Ukraine has helped push prices even higher given <a href="https://www.businessinsider.com/gas-prices-buy-electric-car-ev-ukraine-russia-2022-3?r=US&amp;IR=T">Russia is a key exporter of some of the metals used in the production of battery cells.</a>Many EV manufacturers are increasing the price of their cars, partly because of the rising cost of raw materials.<keyword id="11900744" type="UNKNOWN" weightage="60" keywordseo="tesla" source="Orion">Tesla</keyword> has enacted price hikes across all models, with the cost of a Model X rising as much as $6,000, <a href="https://www.businessinsider.com/tesla-prices-electric-vehicles-elon-musk-supply-chain-model-x-2022-6?r=US&amp;IR=T">Insider's Bea Nolan previously reported.</a> The electric car giant has also been struggling with supplies of computer chips as a result of ongoing supply chain issues and <a href="https://www.businessinsider.com/elon-musk-tesla-laying-off-3-percent-total-workforce-2022-6?r=US&amp;IR=T">staff layoffs.</a><keyword id="6355174" type="UNKNOWN" weightage="60" keywordseo="ford" source="Orion">Ford</keyword> and EV startup <keyword id="7067009" type="UNKNOWN" weightage="60" keywordseo="rivian" source="Orion">Rivian</keyword> have also increased the cost of their vehicles. Ford previously said the rising cost of raw materials had hampered profitably, <a href="https://www.bloomberg.com/news/articles/2022-06-15/ford-says-mustang-mach-e-profit-wiped-out-by-commodity-costs?sref=lAVQtUwz">multiple outlets reported.</a>AlixPartners predicted the high costs would cause a lag in new product launches, but would not affect the growing number of EVs on the market, CNBC reported. Interest in <keyword id="6358835" type="UNKNOWN" weightage="60" keywordseo="electric-cars" source="Orion">electric cars</keyword> has increased as a result of high gas prices, but the rising cost of electric options is putting the vehicles more out of reach for many ordinary consumers.According to the car-buying site <a href="https://www.edmunds.com/industry/press/more-american-car-shoppers-consider-going-green-as-gas-prices-climb-to-record-highs-according-to-edmunds-data.html">Edmunds</a>, the average price paid for a new EV hit $60,054 in February. That price spiked to $60,984 in May, <a href="https://www.bloomberg.com/news/articles/2022-06-16/evs-now-average-over-60-000-as-tesla-rivian-ford-raise-prices?sref=lAVQtUwz">Bloomberg reported</a>, citing Edmunds.

Electric vehicles are getting more expensive because raw material costs have more than doubled to $8,000, research finds

An analysis by ET Intelligence Group has revealed that Indian manufacturing became less profitable over the past decade even though there was a marginal drop in the proportion of raw material cost in net sales. 
 
The analysis was done of over 2,000 publicly listed companies across sectors. 
 
Decreasing profits makes it even more necessary for companies to seek for a lower interest rate regime. 
 
The analysis showed that the aggregate operating margin before depreciation (EBITDA margin excluding other income) for the sample of 1,758 companies fell to a 10-year low of 11.4% in FY15 from 15.2% in FY05. 
 
The wholesale inflation, due to which the profit is shrinking, dropped for the eighth straight month in June 2015. 
 
"Clearly, these trends indicate continued weak pricing power among manufacturing sector even as it increased at the intermediary level, specially in the services sector," Dhananjay Sinha, economist and strategist, Emkay Global Financial Services told ET. 
 
(Image: Reuters)

India’s manufacturing sector is sick and low raw material cost isn’t of any help either!

<ul><li>Shares of most paint makers have fallen in the last five days after one of the leading players, Asian Paints, reported a slowdown in profit on concerns over rising raw material prices.</li><li>Moreover, the market leader expects the increase in raw material prices to persist for some more time, which will eventually impact profits.</li><li>Raw material prices have been pushed up due to the high crude oil prices</li></ul>More than the excitement for anticipated demand during Diwali, an Indian festival, paint manufacturers are worried about the rising raw material prices hitting their profitability. The concern over rising costs elevated after one of the leading players, Asian Paints, reported a fall in profit due to high raw material prices, which is further expected to remain high for some time. Raw material prices have been pushed up due to the high crude oil prices. Note that half of the material used by paint companies are crude oil derivatives. Asian Paints reported a decline in net profit to ₹595 crore in September, below analysts’ expectations. "Steep inflation seen in raw material prices, since the beginning of this calendar year, has been phenomenal and has impacted gross margins across all businesses in the quarter," said Amit Syngle, managing director and chief executive of Asian Paints in a statement to an exchange on October 21. The commentary on rising cost inflation hit shares of other paint makers fearing slowdown in profitability in the near term. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Paint manufacturers </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Returns in 5 days </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Berger Paints </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">-14% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Asian Paints </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">-10% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Kansai Nerolac </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">-10% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Pidilite Industries </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">-9% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Shalimar Paints </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">-7% </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Indigo Paints </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">-3% </td></tr></tbody><tbody></tbody></table> “Higher input prices will keep margins of the paint companies in the near term,” said a report by broking house Sharekhan. Adding to it, global chip shortage could impact supply of tinting machines which are key for paint dealers. The chip shortage could <a href="https://www.livemint.com/market/mark-to-market/paint-manufacturers-may-face-disruption-from-chip-shortage-11632765366605.html">reportedly</a> impact the supply of tinting machines and the expansion plans of paint companies. These machines help shops create different shades of paints within the store, in line with the requirement of customers. Dealers who use tinting machines do not have to hold large amounts of shades in stock. “We expect delays in (the supply of) tinting machines to remain for a few quarters for most paint companies. We expect less impact on top two companies, Asian Paints and Berger Paints, as they already have a high tinting machine penetration compared to smaller peers," said analysts at Edelweiss Securities, <a href="https://www.livemint.com/market/mark-to-market/paint-manufacturers-may-face-disruption-from-chip-shortage-11632765366605.html">reportedly</a>. With steep inflation in input costs weighing on profitability, paint companies may announce further price hikes and pass on the burden to consumers. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/reliance-jio-lost-subscribers-for-the-first-time-in-10-quarters-but-theres-good-news-for-mukesh-ambani-in-this-too/articleshow/87251614.cms">Reliance Jio lost subscribers for the first time in 10 quarters but there's good news for Mukesh Ambani in this too</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/bad-loans-at-icici-bank-have-never-been-this-low-in-the-last-seven-years/articleshow/87250046.cms">Bad loans at ICICI Bank have never been this low in the last seven years</a>

Paint makers stress over high raw material costs and fewer tinting machines even as festive demand picks up

<ul class="summary-list"><li>Dutch <keyword id="11916130" type="UNKNOWN" weightage="60" keywordseo="paint" source="Orion">paint</keyword> maker Akzo Nobel is low on chemicals used to make certain shades of its <keyword id="12368834" type="UNKNOWN" weightage="60" keywordseo="blue-paint" source="Orion">blue paint</keyword>.</li><li>The cost of materials needed to make paint increased by over $323 million since last year, according to the manufacturer. </li></ul>Manufacturers are running out of supplies needed to make shades of <keyword id="12368833" type="UNKNOWN" weightage="60" keywordseo="blue" source="Orion">blue</keyword> paint, the latest good to be affected in the ongoing <a href="https://www.businessinsider.com/why-store-shelves-are-empty-supply-chain-crisis-shortages-2021-10">supply chain crisis</a>."To make paint you would need between 50 and 60 ingredients," a spokesperson from Dutch paint maker <a href="https://markets.businessinsider.com/news/stocks/akzo_nobel-q3-earnings-preview-1030873715">Akzo Nobel</a> explained in a statement to Insider. "Some additives are difficult to get."The cost of <a href="https://www.businessinsider.com/why-supply-shortages-economy-inventory-chips-lumber-cars-toilet-paper-2021-5">raw materials</a> and other variables needed to make paint increased by over $323 million compared to 2020, according to the company's <a href="https://www.akzonobel.com/en/media/latest-news---media-releases-/publishes-results-for-third-quarter-2021">third quarter results</a>. Prices of Akzo Nobel have increased by 9% over the past year."During the third quarter, as predicted, extraordinary levels of raw material costs and supply disruptions impacted our business," Akzo Nobel's CEO Thierry Vanlancker said."As we've already indicated, the headwinds are likely to be with us going into 2022." The issue is causing "complete chaos" for the company, Vanlancker said, according to <a href="https://www.bloomberg.com/news/articles/2021-10-20/the-color-blue-has-joined-the-growing-list-of-material-shortages?sref=BWbpWjRm">Bloomberg</a>.The company expects the availability of additives to return to normal in six to nine months, Akzo Nobel told Insider. Akzo Nobel does not see a reason why there would be a lasting <keyword id="12360795" type="UNKNOWN" weightage="60" keywordseo="supply-and-demand" source="Orion">supply and demand</keyword> imbalance.Other paint manufacturers like <a href="https://www.businessinsider.com/sherwin-williams-color-of-the-year-evergreen-fog-home-improvement-2021-9">Sherwin-Williams</a> are running into similar headwinds as they battle <keyword id="11894141" type="UNKNOWN" weightage="60" keywordseo="shortages" source="Orion">shortages</keyword> related to the <keyword id="11894138" type="UNKNOWN" weightage="60" keywordseo="supply-chain" source="Orion">supply chain</keyword>. Sherwin-Williams told investors in September that the company is facing raw material shortages and that is increasing the overall cost to make paint, according to <a href="https://www.cnn.com/2021/09/29/business/paint-price-inflation/index.html">CNN Business</a>. Sherwin-Williams's CEO John Morikis expects prices to be up for a while, CNN reported."The actions we're taking say we're expecting them to be longer term rather than shorter term," Morikis said a call with investors, according to CNN.The ongoing supply-chain crisis is the result of disruptions caused by the COVID-19 pandemic paired with a boom in <a href="https://www.businessinsider.com/supply-chain-issues-delays-consumers-fix-shopping-strategies-2021-10">demand</a>. Shortages of workers, equipment, raw materials, and space have only exacerbated an already dire situation. <a href="https://www.businessinsider.com/executives-say-brace-for-shipping-delays-price-hikes-next-year-2021-9">Experts predict</a> the disruptions will continue well into 2023, despite <a href="https://www.businessinsider.com/why-bidens-plan-us-ports-wont-solve-supply-chain-crisis-2021-10">efforts from the government to mitigate the issue.</a>

The color blue is the latest victim of the supply chain crisis as paint manufacturers run out of additives

<ul class="summary-list"><li>Many of <keyword id="11915967" type="UNKNOWN" weightage="60" keywordseo="warren-buffett" source="Orion">Warren Buffett</keyword>'s businesses hiked prices in response to increased costs last year.</li><li><keyword id="11915968" type="UNKNOWN" weightage="60" keywordseo="berkshire-hathaway" source="Orion">Berkshire Hathaway</keyword> paid higher prices for raw materials, fuel, labor, and distribution.</li></ul>Warren Buffett's <a href="https://markets.businessinsider.com/stocks/brk-b-stock">Berkshire Hathaway</a> faced a sharp rise in the cost of raw materials, fuel, labor, and distribution across a bunch of its businesses in 2021, its <a href="https://www.berkshirehathaway.com/2021ar/2021ar.pdf">annual report</a> shows. Many of its subsidiaries hiked their prices to offset those increases, which helps to show why US <keyword id="11894140" type="UNKNOWN" weightage="60" keywordseo="inflation" source="Orion">inflation</keyword> has <a href="https://www.businessinsider.com/inflation-cpi-january-price-growth-report-omicron-wave-supply-chains-2022-2?r=US&amp;IR=T">spiked to multi-decade highs</a>.Berkshire is widely seen as a cross-section of corporate America, given its interests in the insurance, energy, real estate, railroad, <keyword id="6362048" type="UNKNOWN" weightage="60" keywordseo="manufacturing" source="Orion">manufacturing</keyword>, services, and retail industries. The conglomerate's costs jumped in 2021 because the COVID-19 pandemic continued to disrupt global supply chains. Lockdowns and travel restrictions also supercharged demand for products such as manufactured homes, building products, and furniture.Many of Buffett's businesses passed along their increased costs to customers in the form of higher prices last year, and sold more products and services, resulting in <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-winning-businesses-railroads-energy-housing-construction-2022-3#retail-7">double-digit revenue growth</a> across most of Berkshire's divisions.<h2>Here's a roundup of 9 Berkshire businesses hit by inflation in 2021, and how some of them responded:</h2>1. Benjamin Moore, a paint company, saw its manufacturing costs jump after Winter Storm Uri disrupted its supply chain.2. Fruit of the Loom faced a yarn shortage, a shortfall of labor at a key supplier, and higher prices for raw materials and freight. The apparel maker scrambled to find alternative sources of yarn and raw materials last year, and eventually signed up an additional supplier.3. The Burlington Northern Santa Fe (<keyword id="13285794" type="UNKNOWN" weightage="60" keywordseo="bnsf" source="Orion">BNSF</keyword>) railroad reported elevated wage inflation, and blamed higher energy prices for a $977 million, or 55%, rise in its fuel expenses.4. Lubrizol, a chemicals company, boosted its prices to offset rising costs of raw materials and greater manufacturing expenses.5. Forest River, which makes RVs, cited higher average selling prices as a key driver of its 21% increase in vehicle sales last year.6. The home-furnishings subdivision, which houses <a href="https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-hathaway-89-mrs-b-fortune-500-ceo-2019-12-1028763487">Nebraska Furniture Mart</a>, posted 22% revenue growth last year. The increase reflected stronger customer demand, and price hikes in response to higher inventory and freight costs.7. Clayton Homes, a housing maker, reported higher costs of materials, manufacturing, and distribution. The wider building-products division hiked prices after supply-chain disruptions raised its raw-material and logistics costs.8. PacifiCorp and MidAmerican Energy, both part of <keyword id="12195945" type="UNKNOWN" weightage="60" keywordseo="berkshire-hathaway-energy" source="Orion">Berkshire Hathaway Energy</keyword>, reported higher costs for thermal generation and purchased power.9. McLane disclosed sizeable increases in personnel and transportation costs, as well as higher fuel costs due to a surge in energy prices. The wholesale supplier of groceries and non-food items blamed shortages of warehouse workers and truck drivers for greater inventory costs and less product availability last year.The company reacted to a reduction in customer-service levels and operating efficiency by spending significantly more on hiring, wages, and benefits.

Warren Buffett's business empire hiked prices to offset soaring costs. Here are 9 Berkshire Hathaway companies that battled inflation in 2021.

<ul class="summary-list"><li><keyword id="11993987" type="UNKNOWN" weightage="60" keywordseo="ikea" source="Orion">Ikea</keyword> said Wednesday it plans to raise prices in 2022.</li><li>It said higher transport and raw material costs were the reasons for the incoming price hikes.</li></ul>Ikea, the leading purveyor of affordable flat-pack <keyword id="11916724" type="UNKNOWN" weightage="60" keywordseo="furniture" source="Orion">furniture</keyword>, is raising prices to offset rising transport and raw material costs.In an interview with <a href="https://www.reuters.com/business/retail-consumer/ikea-owner-sees-cost-pressures-rising-after-hit-profits-2021-11-03/">Reuters</a>, Martin van Dam, CFO of the Swedish furniture giant, said that the price increases would come into force next year.Ikea is among a growing group of retailers and manufacturers that are <a href="https://www.businessinsider.com/food-products-that-are-getting-more-expensive-2021-7">lifting prices</a> to offset <a href="https://www.businessinsider.com/inflation-cpi-september-price-growth-index-economic-data-delta-wave-2021-10">rising inflation</a> caused by higher transportation, packaging, and labor costs. The global <keyword id="11894138" type="UNKNOWN" weightage="60" keywordseo="supply-chain" source="Orion">supply chain</keyword> crisis also means that businesses across all industries are struggling to make and ship their products to meet consumer demand. Ikea operates a franchise model, so it will be up to franchisees to decide whether to pass the higher costs on to their customers, van Dam said. He spoke after Ikea's latest annual results revealed that margins had been squeezed as a result of leaving wholesale prices untouched as input costs rose. "Keeping Ikea stores and warehouses stocked has been a challenge," the company said in a presentation of its annual results Wednesday. "Supply chain disruptions led to a substantial drop in the availability of products that we have yet to recover from."Last month, Ikea CEO Abrahamsson Ring <a href="https://www.businessinsider.com/ikea-shortages-delays-supply-chain-2022-summer-2021-10?r=US&amp;IR=TIR=T">said he's expecting supply chain challenges</a> to continue well into 2022.Shortages would likely continue "for the better part, if not the whole" of Ikea's financial year, which ends August 2022, Ring said in an interview with the Financial Times. The company's <a href="https://gbl-sc9u2-prd-cdn.azureedge.net/-/media/interikea/igi/financial-reports/inter-ikea-group-financial-summary-fy21-3.pdf?rev=9e0d8eaf3c054bc4937e33e36d80c3c5&amp;hash=1E3F4A4D474711B7841748BFD015B4F3B4F3">annual results for fiscal 2021</a> showed that strong online demand helped boost annual sales compared with fiscal 2019 and 2020, but pretax profits at Inter Ikea Group, which acts as the franchisor to store owners, fell by 16% in the 12-month period ending August 31. "Raw material prices increased dramatically in the second half of FY21 following an unfavorable combination of scarcity and high demand," the company wrote in its <a href="https://gbl-sc9u2-prd-cdn.azureedge.net/-/media/interikea/igi/financial-reports/inter-ikea-group-financial-summary-fy21-3.pdf?rev=9e0d8eaf3c054bc4937e33e36d80c3c5&amp;hash=1E3F4A4D474711B7841748BFD015B4F3B4F3">annual summary</a>, adding that transport costs rose due to the "limited availability of containers and carriers as a result of the pandemic."

You Searched For "raw materials costs" and got 7 results

JSW Steel Q4 net profit falls 65% to ₹1,322 crore

PTI

Electric vehicles are getting more expensive because raw material costs have more than doubled to $8,000, research finds

Abby Wallace

India’s manufacturing sector is sick and low raw material cost isn’t of any help either!

BI India Bureau

Paint makers stress over high raw material costs and fewer tinting machines even as festive demand picks up

Bhakti Makwana

The color blue is the latest victim of the supply chain crisis as paint manufacturers run out of additives

Emily Walsh

Warren Buffett's business empire hiked prices to offset soaring costs. Here are 9 Berkshire Hathaway companies that battled inflation in 2021.

Theron Mohamed

Ikea has warned of imminent price hikes amid rising costs and supply chain challenges

Mary Hanbury

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