Hiring difficulties caused by labor shortages and securing a stable workforce
First written in FY2017. 9 of 18 entries say "Materialised", first in FY2018-Q1. Latest entry: FY2026.
Kyokuto moved to the "Worse" side of this theme in 2017, 3 years before the typical company in this theme (2020).
The whole theme swung hardest in 2025: 36 of 59 companies on the "Worse" side.
16 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Regarding earnings, operating profit was ¥2.942 million, down ¥93.107 million, or 96.9%, from the previous fiscal year, ordinary profit was ¥95.774 million, down ¥86.338 million, or 47.4%, and net profit for the fiscal year was ¥53.880 million, down ¥29.170 million, or 35.1%, due to increased labor costs, POS register expenses and other expenses included in selling, general and administrative expenses.」
The increase in labor costs, together with POS register expenses and other costs, raised selling, general and administrative expenses and emerged in full-year results as a factor behind declines in operating profit, ordinary profit and net profit for the fiscal year. - FY2026-H1MaterialisedAnnual report
「Regarding earnings, operating profit was ¥309.388 million, down ¥65.603 million, or 17.5%, from the previous interim accounting period, ordinary profit was ¥355.439 million, down ¥64.489 million, or 15.4%, and interim net profit was ¥245.535 million, down ¥47.157 million, or 16.1%, due to increased labor costs, POS register expenses and other expenses included in selling, general and administrative expenses.」
The increase in labor costs, together with POS register expenses and other costs, raised selling, general and administrative expenses and emerged in actual results as a factor behind declines in operating profit, ordinary profit and interim net profit. - FY2024RestatedAnnual report
「In the cleaning services industry, total demand has continued to trend downward. The business environment remains challenging due to higher raw material costs and labor shortages, among other factors, and the company is required to address various issues.」
The recognition that a difficult business environment, including labor shortages, has continued has been reconfirmed. - FY2020MaterialisedAnnual report
「Regarding earnings, operating profit was ¥81.031 million, down ¥140.393 million, or 63.4%, from the previous fiscal year, and ordinary profit was ¥171.997 million, down ¥160.406 million, or 48.3%, due to lower sales, the previously mentioned investment expenses, one-time expenses associated with the closure of unprofitable stores and factory and plant consolidation, increased labor costs and other factors.」
The increase in labor costs has emerged in full-year results, alongside one-time expenses associated with store closures, factory consolidation and other factors, as a factor behind declines in operating profit and ordinary profit. - FY2020-Q3MaterialisedAnnual report
「Regarding earnings, operating profit was ¥265.492 million, down ¥152.169 million, or 36.4%, from the same quarter of the previous year, ordinary profit was ¥339.176 million, down ¥166.027 million, or 32.9%, and quarterly net profit was ¥204.577 million, down ¥100.790 million, or 33.0%, due to one-time expenses associated with plant and factory consolidation and the closure of unprofitable stores, higher labor costs and other factors.」
The increase in labor costs has emerged in actual results, alongside one-time expenses associated with plant and factory consolidation and other factors, as a factor behind declines in operating profit, ordinary profit and quarterly net profit. - FY2020-Q2MaterialisedAnnual report
「Regarding earnings, despite efforts to reduce expenses through plant consolidation and the closure of unprofitable stores, operating profit was ¥351.155 million, down ¥150.700 million, or 30.0%, from the same quarter of the previous year, due to lower sales and higher labor costs. Ordinary profit was ¥400.100 million, down ¥150.011 million, or 27.3%, and quarterly net profit was ¥231.268 million, down ¥102.838 million, or 30.8%.」
The increase in labor costs has emerged in actual results, alongside lower sales, as a factor behind declines in operating profit, ordinary profit and quarterly net profit. - FY2020-Q1RestatedAnnual report
「During the cumulative first quarter under review, the slowing global economy and rising labor costs due to the labor shortage led small and medium-sized companies and domestic-demand-oriented companies to remain cautious about investment, while the wave of frugality also cast a shadow over consumer sentiment.」
The recognition that labor shortages have continued to drive up labor costs, affecting companies’ investment stance and personal consumption, has been reconfirmed. - FY2019RestatedAnnual report
「In the cleaning industry, as total demand has continued to decline, it has remained difficult to secure personnel due to wage increases caused by labor shortages,」
The recognition that labor shortages accompanied by higher wages have continued to make it difficult to secure personnel has been reconfirmed. - FY2019-Q3WorsenedAnnual report
「During the cumulative third quarter, corporate earnings at large companies initially showed signs of improvement, but concerns about the outlook, including trends in crude oil prices and U.S.-China trade friction and the increasingly serious labor shortage in Japan, have led to a cautious stance toward investment. Regarding earnings, operating profit was ¥417.662 million, down ¥30.388 million, or 6.8%, from the same quarter of the previous year, due to increased labor costs and other expenses to secure labor and the placement of store managers at directly operated stores under the new store manager system established in August 2017.」
In addition to stating that labor shortages have become “serious,” the document identifies increased labor costs and other expenses to secure labor as factors behind the decline in operating profit, indicating that the impact of recruitment and labor security risks has expanded. - FY2019-Q2RestatedAnnual report
「In the cleaning services industry, the challenging business environment has continued, with the downward trend in total demand compounded by higher labor costs due to labor shortages and increased energy costs resulting from higher crude oil prices.」
The recognition that labor shortages have continued to drive up labor costs, creating a difficult business environment, has been reconfirmed. - FY2019-Q1RestatedAnnual report
「In the cleaning services industry, the challenging business environment has continued, with the downward trend in total demand compounded by higher wages for part-time workers due to labor shortages and increased energy costs resulting from higher crude oil prices.」
The recognition that labor shortages have continued to drive up part-time workers’ wages, creating a difficult business environment, has been reconfirmed. - FY2018RestatedAnnual report
「As total demand for cleaning services has continued to decline, the industry has also continued to face difficulty securing personnel due to wage increases caused by labor shortages.」
The recognition that labor shortages accompanied by higher wages have continued to make it difficult to secure the necessary personnel has been reconfirmed. - FY2018-Q3WorsenedAnnual report
「Meanwhile, labor shortages have driven up labor costs, causing small and medium-sized enterprises and companies focused on domestic demand to adopt a cautious stance toward investment. Personal consumption has also continued to lack momentum in its recovery due to the still deeply rooted preference for saving.」
The document states not only that labor shortages have continued to drive up labor costs, but also that they have caused small and medium-sized enterprises and companies focused on domestic demand to adopt a more cautious stance toward investment. - FY2018-Q1MaterialisedAnnual report
「During the cumulative first quarter under review, Japan's economy remained in an uncertain environment due to uncertainty over overseas economic conditions and rising labor costs reflecting the domestic labor shortage.」
The document states that the previously noted risks of difficulty recruiting and securing labor are emerging as higher labor costs due to labor shortages. - FY2017First statedAnnual report
「In addition, as labor shortages have become particularly pronounced in the services sector, it has remained difficult to secure the necessary personnel.」
Labor shortages and difficulty recruiting the necessary personnel are explicitly identified for the first time as ongoing management issues.