Profit decline due to changes in the sales mix
First written in FY2019-Q1. 7 of 11 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2023-Q3.
Dai-Ichi Cutter Kogyo K.K. moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2023: 5 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2023-Q3MitigatedAnnual report
「Meanwhile, because high-margin products accounted for the majority of sales, segment profit was ¥136 million, up 14.4% year on year.」
Against the decline in profit caused by low-margin products becoming the core of sales, as reported through the previous fiscal year, high-margin products became the main products and segment profit increased year on year. - FY2023-Q2MitigatedAnnual report
「Meanwhile, because high-margin products accounted for the majority of sales, segment profit was ¥121 million, up 31.0% year on year.」
Against the decline in profit caused by low-margin products becoming the core of sales, as reported through the previous fiscal year, high-margin products became the main products and segment profit increased year on year. - FY2023-Q1MitigatedAnnual report
「Meanwhile, because high-margin products accounted for the majority of sales, segment profit was ¥55 million, up 754.7% year on year.」
Against the decline in profit caused by low-margin products becoming the core of sales, as reported through the previous fiscal year, high-margin products became the main products and segment profit increased substantially year on year. - FY2022-Q3MaterialisedAnnual report
「Because low-margin products accounted for the majority of sales, product sales were ¥1,761 million, up 19.2% year on year, while segment profit was ¥119 million, down 23.0% year on year.」
The shift toward low-margin products as the core of sales continued, with product sales increasing while segment profit declined year on year. - FY2022-Q2MaterialisedAnnual report
「Because low-margin products accounted for the majority of sales, product sales were ¥1,220 million, up 34.1% year on year, while segment profit was ¥92 million, down 9.5% year on year.」
The shift toward low-margin products as the core of sales continued, with product sales increasing while segment profit declined year on year. - FY2022-Q1MaterialisedAnnual report
「Because low-margin products accounted for the majority of sales, product sales were ¥636 million, up 28.8% year on year, while segment profit was ¥6 million, down 89.0% year on year.」
The shift toward low-margin products as the core of sales materialized, and segment profit in the reuse and recycling business fell 89.0% year on year. - FY2020MitigatedAnnual report
「Meanwhile, as a result of efforts throughout the year to secure customers with high profit margins, segment profit was ¥92 million, compared with segment profit of ¥1 million in the same period of the previous year.」
Securing customers with high profit margins improved segment profit to ¥92 million from the decline in profit due to the customer mix seen in the previous fiscal year. - FY2020-Q3MitigatedAnnual report
「As a result of efforts to secure customers with high profit margins, segment profit was ¥95 million, compared with a segment loss of ¥12 million in the same period of the previous year.」
Securing customers with high profit margins improved segment profit to ¥95 million from a loss in the same period of the previous year, addressing the decline in profit due to the customer mix previously reported. - FY2020-Q2MitigatedAnnual report
「In the reuse and recycling business, we continued working to develop new customers for sales of used smartphones and other products, but product sales were ¥902 million, down 7.0% year on year, as fewer large customers were acquired than in the previous corresponding period. On the other hand, segment profit turned from a loss into profit of ¥67 million as a result of efforts to secure high-margin customers, compared with a segment loss of ¥11 million in the previous corresponding period.」
Although weakness in sales due to a decline in the acquisition of major customers continued, securing customers with high profit margins improved segment profit from a loss in the same period of the previous year to ¥67 million. - FY2020-Q1MitigatedAnnual report
「As a result of efforts to secure customers with high profit margins, segment profit was ¥16 million, up 237.5% year on year.」
Securing customers with high profit margins indicates an improvement in profit performance against the customer-mix issue previously identified as a factor behind the decline in profit. - FY2019-Q1First statedAnnual report
「Changes in the sales mix and higher personnel expenses to strengthen the organizational structure resulted in segment profit of ¥4 million, down 75.1% year on year.」
Changes in the sales mix were identified for the first time as a factor behind the decline in segment profit in the reuse and recycling business, which fell 75.1% year on year.