Rising SG&A Ratio Associated with Overseas Expansion and Investment Payback
First written in FY2024. 4 of 6 entries say "Mitigated", first in 2026-05-15. Latest entry: 2026-08-12.
The whole theme swung hardest in 2022: 2 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- 2026-08-12MitigatedEarnings presentation
「SG&A as a percentage of revenue improved 8.7 percentage points year on year to 40.6%」
First-quarter SG&A as a percentage of revenue improved from 49.3% in the prior-year period to 40.6%, demonstrating greater cost efficiency through generative-AI use and other measures. - FY2026MitigatedAnnual report
「As a result, the SG&A ratio improved by 6.3 percentage points year on year, from 48.7% to 42.4%, and operating income amounted to ¥871,335 thousand, up 32.7% year on year.」
The SG&A ratio associated with upfront investment and workforce expansion improved from 48.7% to 42.4%, as sales growth outpaced the increase in expenses. - FY2025WorsenedAnnual report
「In the 12th consolidated fiscal year, the SG&A ratio remained high at 48.7% due to continued upfront investment and expansion of the workforce.」
The Company quantified the SG&A ratio associated with upfront investment in overseas expansion at 48.7% and continued to identify prolonged investment recovery as a risk if progress falls short of expectations. - FY2024First statedAnnual report
「However, if these initiatives do not progress as planned, it may take longer to recover the investment and the Group’s operating results and financial position may be affected.」
The Company identifies delayed recovery of upfront investment in overseas personnel and marketing as a risk.