Risks Related to Expanding the Health Supplements Business and Obtaining Anti-Fatigue FOSHU Approval
First written in FY2016. 14 of 36 entries say "Worsened", first in FY2018-Q1. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026MitigatedAnnual report
「As a result, the health supplement business reported net sales of ¥1,688 million, down 20.7% from the previous fiscal year, and operating income of ¥328 million, up 260.2%.」
Although revenue declined, operating profit increased from ¥91 million in the previous fiscal year to ¥328 million through a change in the customer acquisition strategy, upselling and more efficient advertising spending, reducing profitability risk to some extent. - FY2026-H1MitigatedAnnual report
「During the six months ended the current interim period, the company shifted its customer acquisition policy toward advertising and sales promotions targeting repeat customers in order to maximize profit. As a result, net sales declined from the year-earlier period. However, the operating margin improved substantially through stronger upselling initiatives for higher-margin products and improved efficiency in advertising and sales promotion expenses. As a result, the health supplement business reported net sales of ¥925 million, down 23.8% year on year, and operating income of ¥217 million, compared with an operating loss of ¥131 million in the year-earlier period.」
The health supplements business swung from an operating loss in the same period of the previous year to operating profit through a change in its customer acquisition strategy, upselling and more efficient advertising spending. Profitability risk associated with business expansion and monetization was reduced to some extent, but revenue declined. - FY2025MitigatedAnnual report
「As a result, the health supplements business reported revenue of ¥2,127 million, down 14.7% from the previous fiscal year, and operating profit of ¥91 million, compared with an operating loss of ¥157 million in the previous fiscal year.」
Although revenue declined, the business swung from an operating loss to operating profit through a change in its customer acquisition strategy, upselling, price increases and more efficient advertising spending, reducing profitability uncertainty to some extent. - FY2025-H1MitigatedAnnual report
「As a result, the health supplements business reported revenue of ¥1,213 million, down 12.7% year on year, and an operating loss of ¥131 million, compared with an operating loss of ¥269 million in the same period of the previous year.」
Although the health supplements business posted lower revenue, its operating loss narrowed from ¥269 million in the same period of the previous year to ¥131 million. Profitability uncertainty was reduced to some extent, but the operating loss continues. - FY2024WorsenedAnnual report
「As a result, the health supplements business reported revenue of ¥2,495 million, up 0.2% from the previous fiscal year, and an operating loss of ¥157 million, compared with operating profit of ¥137 million in the previous fiscal year.」
The health supplements business maintained almost flat revenue growth, but swung from operating profit in the previous year to an operating loss. Higher raw material prices and upfront advertising investment for new products worsened profitability uncertainty associated with business expansion and monetization. - FY2024-Q3WorsenedAnnual report
「During the nine months ended the third quarter, as in previous years, the company concentrated its advertising expenditure during the summer, when demand for fatigue recovery is high and responses to advertising are favorable, to further expand sales. As a result, net sales exceeded the year-earlier period due to an increase in the number of new customers acquired. However, operating income fell below the year-earlier period due to higher cost of sales resulting from higher raw material prices, rising advertising rates and other factors. As a result, the health supplement business reported net sales of ¥1,933 million, up 0.5% year on year, and an operating loss of ¥183 million, compared with operating income of ¥115 million in the year-earlier period.」
Although new customer acquisitions and revenue increased, the health supplements business swung from operating profit in the same period of the previous year to an operating loss due to higher raw material prices and advertising rates. Profitability uncertainty associated with business expansion and monetization has weakened. - FY2024-Q2WorsenedAnnual report
「Although the number of new customers increased, both revenue and operating profit fell below the same period of the previous year due to lower sales volume resulting from higher advertising rates, among other factors, and higher cost of sales resulting from rising raw material prices, among other factors. As a result, the health supplements business reported revenue of ¥1,390 million, down 1.6% year on year, and an operating loss of ¥269 million, compared with an operating loss of ¥17 million in the same period of the previous year.」
Although the number of new customers increased, the health supplements business posted lower revenue as sales volume declined and costs rose due to higher raw material prices. The operating loss widened from ¥17 million in the same period of the previous year to ¥269 million. - FY2024-Q1WorsenedAnnual report
「As a result, the number of new customers acquired exceeded the same period of the previous year, but sales volume declined because advertising efficiency deteriorated due to higher advertising rates, among other factors, and revenue fell below both the same period of the previous year and plan. During the three months ended the first quarter, the company recorded an operating loss as expenses preceded revenue due to advertising spending and the application of discounts and free shipping for first-time purchasers, among other factors. However, upfront costs incurred during the three months ended the first quarter are expected to be recovered through repeat purchases from the second quarter onward and contribute to profit.」
Although the number of new customers increased, sales volume and revenue declined as higher advertising rates weakened advertising efficiency, and the operating loss widened to ¥267 million. The outlook for recovering costs through repeat purchases is also stated. - FY2023WorsenedAnnual report
「During the fiscal year, the company selectively placed advertising in channels with a high degree of certainty regarding cost-effectiveness. However, advertising expenditure fell short of plan, and advertising efficiency deteriorated due to rising advertising rates and other factors. As a result, the number of new customers acquired fell below the year-earlier period, while net sales fell below both the year-earlier period and plan.」
New customer acquisitions and revenue fell below both the same period of the previous year and plan, while advertising efficiency continued to deteriorate due to higher advertising rates. As a result, uncertainty surrounding the expansion and monetization of the health supplements business weakened. - FY2023-Q3WorsenedAnnual report
「The company selectively placed advertising in channels with a high degree of certainty regarding cost-effectiveness. However, advertising expenditure fell short of plan, and advertising efficiency deteriorated due to rising advertising rates and other factors. As a result, the number of new customers acquired fell below the year-earlier period, while net sales fell below both the year-earlier period and plan.」
New customer acquisitions and revenue fell below both the same period of the previous year and plan, while advertising efficiency continued to deteriorate due to higher advertising rates. As a result, uncertainty surrounding the expansion and monetization of the health supplements business has weakened. Meanwhile, the business recorded operating profit of ¥115 million. - FY2023-Q2New customer decline and weaker advertising efficiency continue, but loss narrowsAnnual report
「As a result, the health supplements business reported revenue of ¥1,413 million, down 9.9% year on year, and an operating loss of ¥17 million, compared with an operating loss of ¥22 million in the same period of the previous year.」
The health supplements business continued to post lower revenue, but its operating loss narrowed from ¥22 million in the same period of the previous year to ¥17 million. While the decline in new customers and deterioration in advertising efficiency continued, profitability showed some improvement. - FY2023-Q1WorsenedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, the company selected media with a high degree of confidence in cost effectiveness. As a result, advertising expenditure was underspent against plan, while advertising efficiency deteriorated due to higher advertising rates and other factors. New-customer acquisition fell below the same period of the previous year, and revenue fell below both the same period of the previous year and plan.」
New customer acquisitions and revenue fell below both the same period of the previous year and plan, while advertising efficiency also deteriorated due to higher advertising rates. As a result, uncertainty surrounding the expansion and monetization of the health supplements business weakened. Meanwhile, the operating loss narrowed from ¥208 million in the same period of the previous year to ¥184 million. - FY2022-Q3WorsenedAnnual report
「During the cumulative first 3 quarters of the current consolidated fiscal year, the company selected media with a high degree of confidence in cost effectiveness. As a result, advertising expenditure was underspent against plan and new-customer acquisition stagnated, but sales to existing customers remained stable, partly due to strengthened promotional measures targeting existing customers. Revenue was broadly in line with the same period of the previous year. As a result, the health supplements business reported revenue of ¥2,133 million, down 0.6% year on year, and operating profit of ¥124 million, down 21.0%.」
The sluggish growth in new customer acquisitions led to a slight decline in revenue, while operating profit fell 21.0% year on year. Although profitability improved through restrained advertising spending, uncertainty surrounding business expansion and monetization has weakened again. - FY2022-Q2MitigatedAnnual report
「As a result, the health supplements business reported revenue of ¥1,568 million, down 0.1% year on year, and an operating loss of ¥22 million, compared with an operating loss of ¥32 million in the same period of the previous year.」
Although the health supplements business continues to record an operating loss, the loss narrowed from ¥32 million to ¥22 million. Profitability uncertainty has been reduced to some extent through selective advertising media, restrained advertising spending and stable sales to existing customers. - FY2022-Q1MitigatedAnnual report
「During the three months ended the first quarter, the company recorded an operating loss as expenses preceded revenue due to advertising spending and the application of discounts and free shipping for first-time purchasers, among other factors. However, the operating loss narrowed year on year due to higher revenue and lower advertising expenses, among other factors.」
Although the health supplements business continues to record an operating loss, the loss narrowed from the same period of the previous year due to higher revenue and lower advertising expenses. Profitability uncertainty associated with business expansion has been reduced to some extent. - FY2021-Q3MitigatedAnnual report
「During the nine months ended the third quarter, advertising spending was lower than in the same period of the previous year, but advertising efficiency improved because advertising placements were selected from media with more predictable cost effectiveness. As a result, revenue increased slightly year on year. Operating profit for the nine months ended the third quarter also increased significantly year on year, as revenue rose slightly despite restrained advertising spending, among other factors. As a result, the health supplements business reported revenue of ¥2,146 million, up 1.0% year on year, and operating profit of ¥157 million, up 566.6% year on year.」
Advertising efficiency improved through restrained advertising spending and selective media placement, resulting in higher revenue and a 566.6% year-on-year improvement in operating profit for the health supplements business. Uncertainty related to business expansion and profitability has been reduced to some extent, but there is no statement that the risks have been eliminated. - FY2021-Q2MitigatedAnnual report
「During the six months ended the second quarter, the company recorded an operating loss as expenses preceded revenue due to advertising spending and the application of discounts and free shipping for first-time purchasers, among other factors. However, the operating loss narrowed year on year due to restrained advertising spending, among other factors. As a result, the health supplements business reported revenue of ¥1,570 million, up 0.5% year on year, and an operating loss of ¥32 million, compared with an operating loss of ¥176 million in the same period of the previous year.」
The operating loss narrowed from ¥176 million in the same period of the previous year to ¥32 million due to restrained advertising spending, among other factors, reducing profitability uncertainty to some extent. However, the operating loss continues. - FY2021-Q1Lower revenue but a narrower operating lossAnnual report
「During the three months ended the first quarter, the company recorded an operating loss as expenses preceded revenue due to advertising spending and the application of discounts and free shipping for first-time purchasers, among other factors. However, the operating loss narrowed year on year due to restrained advertising spending, among other factors.」
The health supplements business posted lower revenue and an operating loss, but the loss narrowed from the same period of the previous year due to restrained advertising spending, among other factors. Profitability uncertainty while the business is being expanded remains. - FY2020WorsenedAnnual report
「During the fiscal year, sales remained sluggish because the number of new customers acquired did not reach the assumptions underlying the plan, despite securing the break-even level, and advertising spending was restrained from the second quarter onward based on the progress of results in the first quarter, among other factors. As a result, the health supplements business reported revenue of ¥2,665 million, down 4.9% from the previous fiscal year, and operating profit of ¥168 million, down 35.5%.」
The shortfall in new customer acquisitions against plan and restrained advertising spending resulted in lower revenue and profit for the full year, worsening profitability uncertainty associated with business expansion compared with the previous full year. - FY2020-Q3Continued shortfall against plan, significant year-on-year decline in profitAnnual report
「In the third quarter of the current consolidated cumulative period, sales struggled because the number of new customers acquired, although sufficient to secure profitability, fell short of the assumptions underlying the plan, and advertising expenditures were restrained from the second quarter onward in light of first-quarter performance. Consequently, both net sales and operating income were below plan. The health supplements business therefore reported net sales of ¥2,124 million (down 3.1% year on year) and operating income of ¥23 million (down 79.4%).」
The health supplements business fell short of plan and posted lower revenue and a substantial decline in profit year on year due to the shortfall in new customer acquisitions and restrained advertising spending. Meanwhile, it returned to profitability from the cumulative period of the previous quarter, when it recorded an operating loss. - FY2020-Q2WorsenedAnnual report
「During the six months ended the second quarter, sales remained sluggish because the number of new customers acquired did not reach the assumptions underlying the plan, despite securing the break-even level, and advertising spending was restrained during the second quarter based on the first quarter's operating profit falling short of plan, among other factors. Both revenue and operating profit progressed below plan. As a result, the health supplements business reported revenue of ¥1,562 million, down 3.5% year on year, and an operating loss of ¥176 million, compared with an operating loss of ¥95 million in the same period of the previous year.」
The health supplements business posted lower revenue due to the shortfall in new customer acquisitions against plan and sluggish sales, while its operating loss widened from ¥95 million in the same period of the previous year to ¥176 million. - FY2020-Q1WorsenedAnnual report
「In the six months ended the first quarter, the number of new customers acquired fell short of the assumptions underlying the plan, despite securing the break-even level, and both revenue and operating profit progressed below plan. However, the conversion rate from initial to repeat purchases has remained above expectations, among other factors, so there has been no material impact on the assumptions underlying the full-year plan. From the second quarter onward, upfront costs are expected to be recovered through repeat purchases, with expanded sales contributing to profit. As a result, the health supplements business reported revenue of ¥814 million, up 0.4% year on year, and an operating loss of ¥404 million, compared with an operating loss of ¥326 million in the same period of the previous year.」
The shortfall in new customer acquisitions against plan and the widening of the operating loss from ¥326 million to ¥404 million worsened the profitability uncertainty associated with business expansion. Meanwhile, the company says the conversion rate to repeat purchases is above expectations. - FY2019Higher revenue and profit, but uncertainty continues during business expansionAnnual report
「As a result, the health supplements business reported net sales of ¥2,802 million (up 17.0% year on year) and operating income of ¥261 million (up 26.5%).」
The health supplements business posted higher revenue and profit for the full year, improving from the profitability weakness seen through the previous quarter. However, the risk disclosure that it remains uncertain whether the business will deliver the expected results while still being expanded continues. - FY2019-Q3Higher revenue, lower profit, weakening profitabilityAnnual report
「As a result, the health supplements business reported revenue of ¥2,193 million, up 21.0% year on year, and operating profit of ¥114 million, down 38.8% year on year.」
The health supplements business posted higher revenue, while operating profit fell 38.8% year on year. It returned to profitability from the operating losses recorded in the first and second quarters, but profitability weakened year on year. - FY2019-Q2WorsenedAnnual report
「As a result, the health supplements business reported revenue of ¥1,618 million, up 24.5% year on year, and an operating loss of ¥95 million, compared with operating profit of ¥38 million in the same period of the previous year.」
The health supplements business posted higher revenue, but swung from operating profit in the same period of the previous year to an operating loss. The figures reflect worsening profitability uncertainty arising from upfront expenses, including advertising costs. - FY2019-Q1WorsenedAnnual report
「As a result, the health supplements business reported revenue of ¥810 million, up 24.2% year on year, and an operating loss of ¥326 million, compared with an operating loss of ¥109 million in the same period of the previous year.」
The health supplements business posted higher revenue, while its operating loss widened from ¥109 million in the same period of the previous year to ¥326 million. The figures reflect worsening profitability uncertainty arising from upfront expenses, including advertising costs. - FY2018RestatedAnnual report
「Sales of Imida Peptide have continued to trend upward, supported by an increase in mail-order customers and expanded distribution channels, including drugstores. However, as the business is still in the process of expansion, it remains uncertain at this point whether it will deliver the expected results going forward.」
Although the health supplements business posted higher revenue and profit during the period, the company continues to recognize the risk that it may not deliver the expected results while the business is still being expanded. - FY2018-Q3Higher revenue and profit, improved profitabilityAnnual report
「As a result, the health supplements business reported revenue of ¥1,812 million, up 19.8% year on year, and operating profit of ¥187 million, up 3.0% year on year.」
The health supplements business posted higher revenue and profit, with results showing an improvement from the profitability weakness caused by upfront expenses, including advertising costs, described through the previous quarter. However, there is no statement that the business risks have been eliminated. - FY2018-Q2Higher revenue, lower profit, continued profitability uncertaintyAnnual report
「As a result, during the six months ended the second quarter, profit failed to keep pace with the increase in revenue, but the company was still in the process of recovering upfront costs through repeat purchases. From the third quarter onward, expanded sales are expected to contribute further to profit. Accordingly, the health supplements business reported revenue of ¥1,300 million, up 20.8% year on year, and operating profit of ¥38 million, down 20.4% year on year.」
The health supplements business posted higher revenue, but operating profit fell 20.4% year on year. The company says it is still in the process of recovering upfront costs, including advertising expenses. Profitability uncertainty remains. - FY2018-Q1WorsenedAnnual report
「As a result, revenue in the health-supplement business was ¥652 million, up 21.9% year on year, while the operating loss was ¥109 million, compared with an operating loss of ¥86 million in the same period of the previous year.」
The health supplements business posted higher revenue, while its operating loss widened from the same period of the previous year. Although the company expects to recover costs from the second quarter onward through repeat purchases, profitability uncertainty has again been quantified as of the current quarter. - FY2017-Q3Improved business profitabilityAnnual report
「As a result, revenue in the health-supplement business was ¥1,502 million, up 87.0% year on year, and operating profit was ¥209 million, up 503.8% year on year.」
The health-supplement business, which had posted lower profit in the same period of the previous year because advertising expenses and other costs preceded revenue, recorded increases in both revenue and operating profit in the cumulative third-quarter period, with operating profit of ¥209 million. - FY2017-Q1MaterialisedAnnual report
「Meanwhile, advertising expenses and discounts and free shipping for first-time purchasers resulted in costs preceding revenue. Consequently, although revenue increased year on year in the cumulative first-quarter consolidated period, profit declined.」
Revenue in the health-supplement business increased 92.5% year on year, while the operating loss widened from ¥52 million in the same period of the previous year to ¥77 million owing to advertising expenses and other costs incurred ahead of revenue. The uncertainty surrounding profitability associated with business expansion emerged as a decline in profit for the quarter. - FY2016First statedAnnual report
「Sales of “Imida Peptide” have been trending upward owing to an increase in mail-order customers and the expansion of sales channels to drugstores and other outlets. However, as the business is still in the process of expanding, it remains uncertain whether it will generate results as expected.」
In addition to the business being in the process of expansion, the statement indicates uncertainty relating to working capital, credit, inventory and obtaining approval for an anti-fatigue FOSHU product.