Profitability pressure on the self-medication business from lower inbound demand and labor shortages
First written in FY2020-Q1. 9 of 20 entries say "Mitigated", first in FY2020-Q2. Latest entry: FY2027-H1.
No other company in this theme has enough history to compare yet.
- FY2027-H1WorsenedAnnual report
「Although the segment promoted a sales strategy focused on profitability and prioritized cost control amid the ongoing consolidation of major drugstore operators, it reported net sales of ¥130,582 million, down 3.7% year on year, and operating income of ¥1,025 million, down 41.6%, due to the impact of higher distribution costs and other expenses.」
In the self-medication wholesale business, the company pursued a sales strategy focused on profitability and cost control, but revenue and operating profit declined due to higher logistics and other costs. - FY2026-H1Recovery in demand alongside intensifying competitionAnnual report
「The segment recorded lower revenue for the current interim consolidated accounting period despite stable market growth from the recovery in inbound demand, due to the intensifying market environment, while gross profit increased as the company worked to sell at appropriate prices. In addition, although labor and other costs, including logistics expenses, rose, the company focused on cost control, among other measures,」
Although the previous pressure from declining demand eased as inbound demand recovered, revenue declined due to intensifying market competition. Gross profit increased through sales at appropriate prices and cost control. - FY2025-H1MitigatedAnnual report
「The segment recorded lower revenue for the current interim consolidated accounting period despite stable market growth from the recovery in inbound demand, due to the intensifying market environment, while gross profit increased as the company worked to sell at appropriate prices. In addition, although labor and other costs, including logistics expenses, rose, the company focused on cost control, among other measures,」
Inbound demand recovered, but revenue declined due to intensifying market competition. Gross profit and operating profit improved through sales at appropriate prices and cost control. - FY2024MitigatedAnnual report
「The segment recorded revenue of ¥246,679 million, up 0.8% year on year, and operating profit of ¥2,110 million, up 12.9%, for the current consolidated fiscal year. This reflected the recovery in inbound demand accompanying the increase in visitors to Japan and thorough profit and cost management, despite the decline in revenue caused by lower demand for COVID-19 infection-prevention products and intensified competition with competitors.」
Although lower demand for infection-prevention products and intensified competition continued, full-year revenue and operating profit increased due to the recovery in inbound demand and profit and cost management, easing the previous pressure on earnings from declining demand. - FY2024-Q3MitigatedAnnual report
「For the nine-month period of the current consolidated fiscal year, the segment reported net sales of ¥200.361 billion (up 7.3% year on year) and operating profit of ¥2.180 billion (up 31.1%), mainly due to increased sales resulting from market recovery associated with the recovery of human mobility following the transition of COVID-19 to Category 5 and increased inbound demand driven by growth in visitors to Japan.」
The self-medication wholesale business recorded higher revenue and operating profit due to the recovery in foot traffic and increased inbound demand, further easing the pressure on earnings from declining inbound demand. - FY2024-Q2MitigatedAnnual report
「For the first half of the current consolidated fiscal year, the segment reported revenue of ¥133.350 billion (up 7.5% year on year) and operating profit of ¥1.466 billion (up 26.6%), reflecting market recovery driven by increased inbound demand as the number of visitors to Japan rose, in addition to the recovery in urban foot traffic following the reclassification of COVID-19 to Category 5.」
The self-medication wholesale business recorded higher revenue and operating profit due in part to the recovery in inbound demand, easing the previous pressure on earnings from declining demand. - FY2024-Q1MitigatedAnnual report
「For the first quarter of the current consolidated fiscal year, the segment reported revenue of ¥64.627 billion (up 8.4% year on year) and operating profit of ¥770 million (up 71.9%), reflecting market recovery driven by increased inbound demand as the number of visitors to Japan rose, in addition to the recovery in urban foot traffic following the reclassification of COVID-19 to Category 5.」
The self-medication wholesale business recorded higher revenue and operating profit due to the recovery in inbound demand, partially mitigating the impact of the previously identified risk of declining demand. - FY2023Full-year results updatedAnnual report
「The segment recorded revenue of ¥246,679 million, up 0.8% year on year, and operating profit of ¥2,110 million, up 12.9%, for the current consolidated fiscal year. This reflected the recovery in inbound demand accompanying the increase in visitors to Japan and thorough profit and cost management, despite the decline in revenue caused by lower demand for COVID-19 infection-prevention products and intensified competition with competitors.」
Although lower demand for infection-prevention products and intensified competition continued, full-year revenue and operating profit increased due to the recovery in inbound demand and profit and cost management. - FY2023-Q3Updated cumulative third-quarter resultsAnnual report
「Although this segment reported lower revenue due to declining demand for products related to COVID-19 infection prevention and intensifying competition with competitors, thorough management of profits and costs resulted in revenue of ¥186,779 million, down 1.2% year on year, and operating profit of ¥1,663 million, up 10.8%.」
In the self-medication wholesale business, revenue continued to decline due to lower demand for infection-prevention products and intensified competition, while operating profit increased 10.8% year on year through profit and cost management. - FY2023-Q1WorsenedAnnual report
「Despite lower revenue due to a decline in demand for COVID-19 infection-prevention products and intensified competition with competitors, revenue was ¥59,617 million, down 6.2% year on year, while operating profit was ¥448 million, up 0.8%, due in part to thorough profit and cost management.」
In the self-medication wholesale business, lower demand for infection-prevention products and intensified competition with competitors were identified as factors behind the decline in revenue. Operating profit increased slightly due to profit and cost management. - FY2022-Q3WorsenedAnnual report
「For the cumulative third quarter of the fiscal year, the segment reported revenue of ¥189.002 billion (¥201.294 billion in the same period of the previous fiscal year) and operating profit of ¥1.501 billion (¥2.278 billion), reflecting a reactionary decline in demand for infection-prevention products after the sharp increase under the nationwide state of emergency declared in April 2020, as well as higher logistics-related costs.」
The decline in revenue and operating profit in the self-medication wholesale business progressed through the cumulative third quarter due to the decline following the sharp increase in demand for infection-prevention products and higher logistics-related costs. - FY2022-Q2WorsenedAnnual report
「The segment recorded revenue of ¥129,901 million, compared with ¥134,184 million in the same period of the previous year, and operating profit of ¥1,093 million, compared with ¥1,775 million, for the cumulative second quarter of the current consolidated fiscal year, due mainly to a decline following the sharp increase in demand for infection-prevention products under the nationwide state of emergency declared in April 2020 and higher logistics-related costs.」
The self-medication wholesale business recorded lower revenue and operating profit year on year due to the decline following the sharp increase in demand for infection-prevention products and higher logistics-related costs. - FY2022-Q1WorsenedAnnual report
「In the self-medication wholesale business, revenue was ¥63,567 million, compared with ¥64,686 million in the same period of the previous year, and operating profit was ¥444 million, compared with ¥717 million, due mainly to a decline following the sharp increase in demand for infection-prevention products under the nationwide state of emergency declared in April of the previous year and higher logistics-related costs.」
The self-medication wholesale business recorded lower revenue and operating profit due to the decline following the sharp increase in demand for infection-prevention products and higher logistics-related costs. - FY2021WorsenedAnnual report
「The segment reported net sales of ¥261.624 billion, down 2.7% year on year, and operating income of ¥2.401 billion, down 16.8%, for the fiscal year. The increase in sales of infection-prevention products was more than offset by a sharp decline in inbound demand and higher logistics and workplace-environment costs, including those related to promoting telework.」
The self-medication wholesale business recorded lower revenue and operating profit for the full year due to lower inbound demand and higher logistics and other infrastructure-related costs. - FY2021-Q3MitigatedAnnual report
「For the segment's third-quarter cumulative consolidated period, net sales were ¥20.1199 billion, down 1.8% year on year, while operating income was ¥2.184 billion, up 16.4%, despite a substantial decline in inbound demand caused by the spread of COVID-19, owing to increased sales of infection-prevention products and more thorough cost and profit management as part of company-wide reforms originating in logistics.」
While the substantial decline in inbound demand resulted in lower revenue, operating profit increased 16.4% year on year due to higher sales of infection-prevention products and cost and profit management. - FY2021-Q2MitigatedAnnual report
「During the cumulative second quarter, the segment reported net sales of ¥134.122 billion, down 3.2% year on year, and operating profit of ¥1.713 billion, up 25.5%. This reflected higher sales of infection-prevention products and thorough cost and profit management driven by company-wide reforms originating in logistics, despite a substantial decline in inbound demand due to the spread of COVID-19.」
Although the substantial decline in inbound demand continued, operating profit increased 25.5% year on year due to higher sales of infection-prevention products and cost and profit management. - FY2021-Q1MitigatedAnnual report
「For the segment's first-quarter cumulative consolidated period, net sales were ¥6.4656 billion, down 3.1% year on year, while operating income was ¥688 million, up 77.8%, despite a sharp decline in inbound demand caused by the spread of COVID-19, owing to increased sales of infection-prevention products and more thorough cost management.」
Although the substantial decline in inbound demand continued, operating profit improved to a 77.8% year-on-year increase due to higher sales of infection-prevention products and cost management. - FY2020-Q3WorsenedAnnual report
「In the self-medication wholesale business, the company is promoting the concept of a total healthcare merchandising wholesaler and aiming to become a one-of-a-kind wholesaler differentiated and creative through new added value. As key initiatives under the 19-21 medium-term management plan, it is pursuing the establishment of a stable and sustainable business foundation, consumer-oriented product proposals, stronger initiatives involving exclusive manufacturers and products, investment for the future, and stronger collaboration among business segments.」
For the cumulative third quarter, operating profit fell 10.3% year on year due to lower inbound demand, higher labor and logistics costs caused by labor shortages, and system modification costs associated with the revision of the Consumption Tax Act. The decline in profit widened from the 5.8% decline for the cumulative second quarter. - FY2020-Q2MitigatedAnnual report
「The segment recorded revenue of ¥138,507 million, up 0.9% year on year, and operating profit of ¥1,365 million, down 5.8%, for the cumulative second quarter of the current consolidated fiscal year, due mainly to lower inbound demand and higher labor and logistics costs caused by labor shortages.」
The effects of lower inbound demand and higher labor and logistics costs continued, but revenue increased year on year and the decline in operating profit narrowed from 43.3% in the first quarter to 5.8%. - FY2020-Q1First statedAnnual report
「For the segment's first-quarter cumulative consolidated period, net sales were ¥6.6729 billion, down 2.0% year on year, and operating income was ¥387 million, down 43.3%, due to factors including lower inbound demand and higher personnel and logistics costs resulting from labor shortages.」
In the self-medication wholesale business, lower inbound demand and higher labor and logistics costs due to labor shortages emerged in actual results as factors behind declines in revenue and operating profit.