“For perspective, 40% of our raw material cost is directly and indirectly impacted by oil prices. Peter, who founded the company in 1982, admits that the current headwinds of rising raw material prices and escalating shipping fees have eroded profit margins in the financial year ending May 31, 2022 (FY2022). Now, we have to closely monitor the Russia-Ukraine war because global crude oil prices are causing inflationary pressures. Higher oil prices will lead to higher raw material cost and higher logistics cost, that’s for sure, and that is something that we need to manage,” he says. “We have been communicating with our customers, telling them that the shipping costs and raw material prices have gone up, and we have little option but to increase our selling prices.
