Cost Management Through Optimizing Flyer Distribution and Reducing Expenses

「Although raw material and other expense costs rose and personnel expenses increased, the effect of substantially higher sales absorbed these increases.」

「Cost of sales decreased ¥41 million from the previous fiscal year to ¥1,206 million, down 3.3%. This was due to the optimization of insert volumes. Selling, general and administrative expenses increased ¥96 million from the previous fiscal year to ¥2,007 million, up 5.1%.」

「Although the company worked to reduce cost of sales through measures including optimizing the number of inserts and to cut various costs, operating profit fell below the year-earlier level because it was unable to fully absorb increases in labor and other costs.」

「Operating income increased ¥7 million from the previous fiscal year to ¥576 million, up 1.3%. The combined effect of higher net sales and lower cost of sales exceeded the increase in selling, general and administrative expenses, resulting in an increase from the previous year.」

「Although the company pursued further cost reductions in each business amid continued increases in print-media raw material costs, operating profit fell below the year-earlier level because it was unable to fully absorb higher selling, general and administrative expenses, mainly due to increased labor costs.」

「Despite higher costs for print-media raw materials and miscellaneous expenses and higher labor costs, operating profit exceeded the year-earlier level as a result of efforts to reduce cost of sales through measures including optimizing the number of inserts and to reduce selling, general and administrative expenses. Ordinary profit and quarterly net income significantly exceeded the year-earlier levels due to gains from the sale of held shares.」

「Despite efforts to implement transactions at appropriate prices following the revision of advertising rates in March and to optimize the number of copies published in response to the gradual increases in print-media raw material costs and labor costs over the past several years, operating profit fell slightly below the year-earlier level.」

「Despite higher costs for print-media raw materials and other items, operating profit, ordinary profit, and quarterly net income all significantly exceeded the year-earlier levels as a result of higher revenue and efforts to reduce cost of sales and selling, general and administrative expenses.」

「Despite soaring costs for paper and other publication materials and other expenses, higher sales, along with efforts to reduce cost of sales by optimizing insert volumes and to cut selling, general and administrative expenses, resulted in operating income, ordinary income and quarterly net income all substantially exceeding the results for the same period of the previous year. For the six months ended 30 September, net sales were ¥1,744 million, up 16.9% year on year; operating income was ¥207 million, up 53.8%; ordinary income was ¥231 million, up 46.1%; and quarterly net income was ¥156 million, up 39.1%.」

「Despite numerous cost-increasing factors, efforts to control cost of sales and reduce selling, general and administrative expenses, together with higher sales, resulted in operating income, ordinary income and quarterly net income all substantially exceeding the results for the same period of the previous year. For the three months ended 30 June, net sales were ¥884 million, up 16.7% year on year; operating income was ¥119 million, up 48.0%; ordinary income was ¥127 million, up 42.7%; and quarterly net income was ¥83 million, up 35.2%.」

「Along with higher sales, we worked to reduce cost of sales through optimization of the number of copies distributed as inserts and to reduce expenses. Although results fell short of the earnings forecast announced in April this year, operating profit, ordinary profit and net profit all substantially exceeded the previous fiscal year.」

「In addition to higher sales, efforts to reduce cost of sales and selling, general and administrative expenses, as well as gains on the sale of investment securities, resulted in operating profit, ordinary profit and quarterly net profit substantially exceeding the results for the same period of the previous year. Accordingly, for the nine months ended the third quarter, net sales were ¥2,508 million, up 11.8% year on year; operating profit was ¥425 million, up 66.9%; ordinary profit was ¥486 million, up 70.4%; and quarterly net profit was ¥321 million, up 69.3%.」

「With regard to earnings, despite the year-on-year increase in sales, efforts to control cost of sales and reduce selling, general and administrative expenses resulted in operating income, ordinary income and quarterly net income all exceeding the results for the same period of the previous year.」

「Cost of sales increased ¥22 million from the previous fiscal year to ¥1,079 million, up 2.1% year on year. This was due to higher printing and other expenses accompanying the increase in sales. Selling, general and administrative expenses decreased ¥9 million from the previous fiscal year to ¥1,620 million, down 0.6%.」

「With regard to earnings, although we worked to reduce cost of sales and cut selling, general and administrative expenses, these efforts were insufficient to offset the decline in sales」

「We proceeded with efforts to reduce cost of sales through greater efficiency in the production division following the introduction of a content management system and through optimization of the number of copies distributed as inserts, as well as efforts to reduce selling, general and administrative expenses. However, the impact of lower sales was substantial, and operating profit, ordinary profit and quarterly net profit all fell below the results for the same period of the previous year.」

「With regard to earnings, although we worked to reduce cost of sales and cut selling, general and administrative expenses, operating income, ordinary income and quarterly net income were all below the results for the same period of the previous year.」

「Cost of sales decreased ¥67 million from the previous fiscal year to ¥1,056 million, down 6.0% year on year. This reflected lower outsourcing expenses following the optimization of insert volumes and lower labor costs resulting from greater efficiency in the production division. Selling, general and administrative expenses decreased ¥44 million from the previous fiscal year to ¥1,630 million, down 2.7%.」

「With regard to earnings, although we worked to reduce cost of sales by optimizing insert volumes and to cut selling, general and administrative expenses, these efforts were insufficient to offset the decline in sales, and operating income, ordinary income and quarterly net income were all below the results for the same period of the previous year.」

「With respect to profits, despite higher printing-paper prices, we reduced cost of sales through greater efficiency in the production division and also worked to reduce selling, general and administrative expenses. As a result, operating profit, ordinary profit and quarterly net profit all exceeded the results for the same period of the previous year. Accordingly, for the six months ended the second quarter, net sales were ¥1,454 million, up 1.2% year on year; operating profit was ¥94 million, up 106.3%; ordinary profit was ¥113 million, up 58.2%; and quarterly net profit was ¥78 million, up 60.0%.」

「With regard to earnings, efforts to reduce cost of sales through greater efficiency in the production division and optimization of insert volumes enabled operating income, ordinary income and quarterly net income to exceed the results for the same period of the previous year. For the three months ended 30 June, net sales were ¥741 million, up 0.0% year on year; operating income was ¥60 million, up 19.6%; ordinary income was ¥67 million, up 4.1%; and quarterly net income was ¥44 million, up 5.5%.」

「Cost of sales decreased ¥51 million from the previous fiscal year to ¥1,124 million, down 4.4% year on year. This was attributable to lower outsourcing expenses following the review of insert volumes and lower labor costs resulting from greater efficiency in the production division.」

「With respect to profits, the effects of lower cost of sales through efficiency improvements accompanying the consolidation of production sites and optimization of the number of copies distributed as inserts enabled operating profit to exceed the results for the same period of the previous year. Ordinary profit, however, fell slightly below the previous-year result due in part to the recognition of losses on the sale of securities.」

「Although the company reduced cost of sales through measures including greater efficiency in the production division, selling, general and administrative expenses increased as a result of strategic, medium- to long-term hiring for future growth, including increased recruitment of new graduates and additional personnel for the promotion-related business. Consequently, operating income, ordinary income and quarterly net income were all below the results for the same period of the previous year.」

「With regard to earnings, although we worked to reduce cost of sales, increases in personnel expenses and depreciation and amortization, together with the decline in net sales, weighed on results, and both operating income and ordinary income were below the results for the same period of the previous year.」

「The company also pursued various management initiatives in response to changes in reader needs and the social environment, including efficiency gains from consolidating publication editions, revising insert volumes to reflect actual conditions, and expanding the placement of publications at stores and facilities. On the other hand, with regard to earnings, efforts to reduce cost of sales by optimizing insert volumes and to cut selling, general and administrative expenses enabled operating income, ordinary income and net income to exceed the results for the previous fiscal year.」

「On the other hand, with regard to earnings, our efforts to reduce cost of sales by optimizing insert volumes and to cut selling, general and administrative expenses enabled operating income, ordinary income and quarterly net income to exceed the results for the same period of the previous year. As a result, for the nine months ended 31 December, net sales were ¥2,426 million, down 0.8% year on year; operating income was ¥339 million, up 44.7%; ordinary income was ¥377 million, up 28.4%; and quarterly net income was ¥231 million, up 20.5%.」

「Meanwhile, with respect to profits, we reduced cost of sales through measures including optimization of the number of newspaper copies distributed as inserts and the strategic consolidation of certain editorial offices, and worked to reduce selling, general and administrative expenses. As a result, operating profit, ordinary profit and quarterly net profit all exceeded the results for the same period of the previous year.」

「With regard to earnings, we worked to reduce cost of sales by optimizing the volume of inserts and to cut selling, general and administrative expenses. However, the decline in net sales weighed on results, and operating income, ordinary income and quarterly net income were all below the results for the same period of the previous year.」