Inventory Write-Downs and Provisions Arising from Unprofitable Projects and Increased Labor Hours
First written in FY2022-Q2. 8 of 8 entries say "Materialised", first in FY2022-Q2. Latest entry: FY2025-H1.
Members 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 2024: 17 of 54 companies on the "Worse" side.
15 other companies' latest entry also says "Materialised".
- FY2025-H1MaterialisedAnnual report
「Inventory write-down amount 2,219 Reversal of inventory write-down △459」
During the current interim consolidated accounting period, an inventory write-down of ¥2.219 million and a reversal of ¥459,000 were recorded. Write-downs related to loss-making projects and increased labour hours, which have emerged since prior periods, continue. - FY2024-Q3MaterialisedAnnual report
「Inventory write-down amount 4,906 Reversal of inventory write-down △430」
For inventories, an inventory write-down of ¥4.906 million and a reversal of ¥430,000 were recorded during the cumulative third quarter of the current consolidated fiscal year. Write-downs related to loss-making projects and increased labour hours continue. - FY2024-Q2MaterialisedAnnual report
「Inventory write-down amount 3,109 Reversal of inventory write-down △430」
An inventory write-down of ¥3.109 million was recorded during the cumulative second quarter. Write-downs and cost increases related to loss-making projects and increased labour hours continue. - FY2023-Q3MaterialisedAnnual report
「Profit was lower year on year, mainly because the EMC business was slow to acquire new customers and projects through its sales activities, resulting in unassigned personnel, while costs also increased due to some unprofitable projects, investment in sales, recruitment and training, and office expansion associated with the increase in creators. Consequently, consolidated operating profit declined year on year.」
Some loss-making projects continued to arise in the EMC business, contributing to higher costs and lower operating profit alongside idle employees and investments in sales, recruitment and training, as well as office expansion. An inventory write-down of ¥4.507 million was also recorded for the cumulative third quarter. - FY2023-Q2MaterialisedAnnual report
「Profit was lower year on year, mainly because the EMC business was slow to acquire new customers and projects through its sales activities, resulting in unassigned personnel, while costs also increased due to some unprofitable projects, investment in sales, recruitment and training, and office expansion associated with the increase in creators. Consequently, consolidated operating profit declined year on year.」
Some loss-making projects continued to arise in the EMC business, contributing to higher costs and lower operating profit alongside idle employees and investments in sales, recruitment and training, as well as office expansion. An inventory write-down of ¥2.581 million was also recorded during the quarter. - FY2023-Q1MaterialisedAnnual report
「Inventory write-down amount 30,699 Reversal of inventory write-down △1,330」
An inventory write-down of ¥30.699 million was recorded. Although the main text does not explicitly state a causal link to loss-making projects, a write-down related to the previously identified risk of inventory write-downs and provisions was disclosed for the current quarter as well. - FY2022-Q3MaterialisedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year, estimated costs were changed because the increase in labour hours that had not been anticipated in the previous review of total project costs occurred, increasing the likelihood of an outflow of economic benefits. As a result of this change, cost of sales increased by ¥138.388 million.」
The increase in labour hours that had not been anticipated in the previous review of total project costs actually occurred, subsequently becoming apparent through a change in estimated costs and a ¥138.388 million increase in cost of sales. - FY2022-Q2MaterialisedAnnual report
「In the EMC business, in addition to recording an inventory write-down of ¥92 million and a provision of ¥78 million due to the occurrence of loss-making projects, the Company fell short of its earnings forecast for the cumulative second quarter of the current consolidated fiscal year because of some delay against its plan to win new business.」
Loss-making projects actually arose in the EMC business, resulting in an inventory write-down of ¥92 million and a provision of ¥78 million. In addition, the company stated that cost of sales increased by ¥138.388 million due to increased labour hours that had not been anticipated in the previous review of total project costs.