Rapid Growth of the Mail-Order Business and the Burden of Upfront Investment
First written in FY2016-Q3. 13 of 32 entries say "Worsened", first in FY2018-Q1. Latest entry: 2026-06-10.
Pharma Foods International moved to the "Worse" side of this theme in 2025.
1 other company's latest entry also says "Worsened".
- FY2025-H1WorsenedAnnual report
「As a result, revenue for the interim consolidated accounting period was ¥29,857 million, down 5.7% year on year; operating profit was ¥623 million, down 59.4%; ordinary profit was ¥645 million, down 58.2%; and interim net profit attributable to owners of the parent was ¥229 million, down 70.1%.」
Consolidated revenue declined 5.7% year on year, while operating profit, ordinary profit and interim net profit attributable to owners of the parent also declined substantially. - FY2024Continued revenue decline, earnings recovery and investment optimizationAnnual report
「As a result, revenue for the fiscal year was ¥62,147 million, down 9.4% year on year; operating profit was ¥5,113 million, up 41.6%; ordinary profit was ¥5,249 million, up 48.2%; and net profit attributable to owners of the parent was ¥3,205 million, up 4.0%.」
While consolidated revenue declined, the company simultaneously optimized advertising expenses and continued research and development investment, increasing operating profit, ordinary profit and net profit. - FY2024-Q3Continued revenue decline, earnings recovery and investment optimizationAnnual report
「As a result, revenue for the cumulative third quarter was ¥47,171 million, down 10.2% year on year; operating profit was ¥3,266 million, up 99.9%; ordinary profit was ¥3,223 million, up 103.7%; and quarterly net profit attributable to owners of the parent was ¥1,856 million, up 73.7%.」
While consolidated revenue declined, operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all increased substantially year on year, and the coexistence of earnings recovery and optimized advertising investment continues. - FY2024-Q2Revenue decline, maintenance of profitability and investment optimizationAnnual report
「As a result of these initiatives, research and development expenses rose 16.6% year on year to ¥482 million. While strengthening advertising for new products, the company also advanced optimization of total advertising expenses, which fell 25.6% year on year to ¥16,990 million during the cumulative second quarter. As a result, revenue for the cumulative second quarter was ¥31,652 million, down 9.9% year on year, while operating profit was ¥1,535 million, compared with an operating loss of ¥883 million in the same period a year earlier.」
The company increased research and development expenses and advertised new products while reducing total advertising expenses, resulting in lower revenue but a shift from an operating loss to operating profit. - FY2024-Q1Revenue decline, earnings recovery and continued investmentAnnual report
「As a result of these initiatives, research and development expenses rose 34.3% year on year to ¥277 million. While strengthening advertising for new products, the company also advanced optimization of total advertising expenses, which fell 31.1% year on year to ¥8,813 million during the cumulative first quarter.」
The company increased research and development investment and advertised new products while reducing total advertising expenses, resulting in lower revenue but an earnings recovery. - FY2023Revenue growth, earnings recovery and continued investmentAnnual report
「As a result, revenue for the fiscal year reached ¥68,572 million, up 13.9% year on year; operating profit was ¥3,610 million, up 234.1%; ordinary profit was ¥3,540 million, up 179.9%; and net profit attributable to owners of the parent was ¥3,081 million, compared with a net loss attributable to owners of the parent of ¥374 million in the previous fiscal year.」
While continuing to invest in advertising and research and development expenses, the company expanded consolidated revenue and swung from a final loss in the previous fiscal year to a final profit of ¥3,081 million. - FY2023-Q2WorsenedAnnual report
「As a result, BtoC business revenue for the cumulative second quarter was ¥30,923 million, a substantial 22.9% year-on-year increase. Advertising expenses of ¥22,771 million were recorded to acquire additional subscription customers, compared with ¥15,561 million in the same period of the previous year, up 46.3% year on year, while the segment posted a loss of ¥857 million, compared with profit of ¥2,070 million in the same period of the previous year.」
The BtoC business, including mail-order sales, generated higher revenue, but the burden of advertising investment caused a shift from profit in the same period a year earlier to a loss, and the coexistence of rapid growth and losses continues. - FY2023-Q1WorsenedAnnual report
「As a result of these initiatives, research and development expenses rose 42.2% year on year to ¥206 million, while advertising expenses rose 90.2% to ¥12,800 million.」
While substantially increasing advertising and research and development investment, the company experienced both revenue growth and widening losses during the quarter. - FY2022WorsenedAnnual report
「As a result, revenue for the fiscal year reached ¥60,185 million, up 28.7% year on year; operating profit was ¥1,080 million, down 81.0%; ordinary profit was ¥1,264 million, down 78.1%; and net loss attributable to owners of the parent was ¥374 million, compared with net profit of ¥3,841 million in the previous fiscal year.」
Consolidated revenue increased, while operating and ordinary profit declined substantially and the company swung to a net loss attributable to owners of the parent. - FY2022-Q3Revenue growth, earnings decline and an increasing investment burdenAnnual report
「As a result, research and development expenses rose 34.1% year on year to ¥475 million, while advertising expenses rose 35.1% to ¥26,158 million. Revenue for the cumulative third quarter reached ¥44,050 million, compared with ¥33,748 million in the same period a year earlier, up 30.5% year on year. In terms of earnings, operating profit was ¥931 million, down 64.6% from ¥2,633 million; ordinary profit was ¥1,076 million, down 60.4% from ¥2,716 million; and net loss attributable to owners of the parent was ¥284 million, compared with net profit of ¥1,553 million in the same period a year earlier.」
Revenue increased 30.5% as research and development expenses and advertising expenses rose, while operating and ordinary profit declined and the company recorded a quarterly net loss attributable to owners of the parent. - FY2022-Q2AdvancedAnnual report
「As a result, revenue from the BtoC business for the cumulative second quarter reached ¥25,159 million, up 33.1% year on year, representing substantial revenue growth. While maintaining a high level of investment in existing products with a focus on efficiency, the company also made aggressive investments in new products, recording ¥15,561 million in advertising expenses, up from ¥13,157 million in the same period a year earlier, an increase of 18.3%.」
The BtoC business, including mail-order sales, generated revenue of ¥25,159 million, up 33.1% year on year. The pattern of rapid growth supported by upfront investment of ¥15,561 million in advertising expenses continues. - FY2022-Q1AdvancedAnnual report
「As a result, revenue for the cumulative first quarter reached ¥12,606 million, compared with ¥8,387 million in the same period a year earlier, up 50.3% year on year. In terms of earnings, operating profit was ¥1,575 million, compared with an operating loss of ¥1,428 million in the same period a year earlier; ordinary profit was ¥1,617 million, compared with an ordinary loss of ¥1,405 million; and net profit attributable to owners of the parent was ¥1,231 million, compared with a net loss of ¥1,427 million.」
Consolidated revenue increased 50.3% year on year, with operating profit of ¥1,575 million, ordinary profit of ¥1,617 million and net profit of ¥1,231 million replacing the operating, ordinary and net losses recorded in the same period a year earlier. - FY2021AdvancedAnnual report
「Revenue for the fiscal year reached ¥46,752 million, up 204.5% year on year; operating profit was ¥5,673 million, up 666.6%; ordinary profit was ¥5,767 million, up 631.0%; and net profit attributable to owners of the parent was ¥3,841 million, up 455.9%, demonstrating that the company successfully combined aggressive investment with profit generation.」
While continuing aggressive advertising and research and development investment, revenue, operating profit, ordinary profit and net profit all increased substantially, demonstrating in the full-year results that investment and profit generation can be achieved together. - FY2021-Q3AdvancedAnnual report
「Revenue for the cumulative third quarter reached ¥33,748 million, compared with ¥11,112 million in the same period a year earlier. Sales of hair-growth products and cosmetics drove growth, and the group as a whole achieved substantial revenue growth of 203.7% year on year.」
Driven mainly by hair-growth products and cosmetics, consolidated revenue reached ¥33,748 million, up 203.7% year on year, with rapid growth continuing. - FY2021-Q2AdvancedAnnual report
「Revenue for the cumulative second quarter reached ¥20,393 million, compared with ¥6,452 million in the same period a year earlier. Despite limiting orders for approximately one month for the NeuMoⓇ hair-growth product, the group as a whole achieved substantial revenue growth of 216.1% year on year.」
Against a backdrop of large-scale advertising investment, consolidated revenue reached ¥20,393 million, up 216.1% year on year. The results demonstrate rapid growth despite order restrictions. - FY2021-Q1AdvancedAnnual report
「As a result of this aggressive investment, revenue for the cumulative first quarter reached ¥8,387 million, compared with ¥3,090 million in the same period a year earlier, an increase of 171.4% year on year and 2.7 times the prior-year level. In terms of earnings, operating loss was ¥1,428 million, compared with a loss of ¥784 million in the same period a year earlier.」
Against a backdrop of aggressive advertising investment, consolidated revenue increased 171.4% year on year to ¥8,387 million, while operating loss was ¥1,428 million. - FY2020-Q3AdvancedAnnual report
「Operating profit for the consolidated third quarter reached a record high of ¥1,328 million, demonstrating that aggressive investment had successfully generated earnings. Profit recovery progressed from the consolidated third quarter,」
While continuing upfront investments including ¥6,093 million in advertising expenses, operating profit for the third quarter reached a record high of ¥1,328 million, indicating progress in recovering the investment. - FY2020-Q2WorsenedAnnual report
「During the cumulative second quarter, the company invested ¥4,752 million in advertising expenses, compared with ¥3,045 million in the same period a year earlier, and ¥228 million in research and development expenses, compared with ¥145 million.」
Aggressive investment centered on the mail-order business increased advertising expenses year on year, and consolidated operating losses also widened. - FY2020-Q1WorsenedAnnual report
「In terms of earnings, the company made strategic upfront investments in the mail-order business and recorded ¥2,296 million in advertising expenses, compared with ¥1,734 million in the same period a year earlier. As a result, operating loss was ¥784 million, compared with a loss of ¥391 million in the same period a year earlier; ordinary loss was ¥767 million, compared with a loss of ¥362 million; and net loss attributable to owners of the parent was ¥782 million, compared with a loss of ¥382 million.」
Revenue increased, but the burden of upfront investments including advertising expenses caused consolidated operating, ordinary and net losses to widen year on year. - FY2019AdvancedAnnual report
「Across the mail-order business, the company promoted various measures, including aggressive, efficiency-focused advertising investment, expanding call-center functions and strengthening CRM (Customer Relationship Management), leading to business expansion and progress toward monetization.」
While continuing investment in advertising, call-center operations and CRM, full-year revenue reached ¥8,523 million and segment profit reached ¥288 million, demonstrating progress toward monetization in the full-year results. - FY2019-Q3WorsenedAnnual report
「Revenue from the mail-order business for the cumulative third quarter reached ¥6,469 million, up 35.9% year on year, representing substantial revenue growth. In terms of earnings, the company recorded ¥4,314 million in advertising expenses, compared with ¥3,212 million in the same period a year earlier, as a forward-looking investment, resulting in a segment loss of ¥327 million, compared with a segment loss of ¥304 million in the same period a year earlier.」
The mail-order business continued to achieve substantial revenue growth, but segment losses widened year on year due to the burden of upfront investments including advertising expenses. - FY2019-Q2AdvancedAnnual report
「Revenue from the mail-order business for the cumulative second quarter reached ¥4,142 million, up 39.4% year on year, representing substantial revenue growth. In terms of earnings, the company recorded ¥3,045 million in advertising expenses, compared with ¥2,631 million in the same period a year earlier, as a forward-looking investment, resulting in a segment loss of ¥510 million, compared with a segment loss of ¥862 million in the same period a year earlier.」
The figures show revenue growth and narrower losses in the mail-order business while upfront investment in advertising continues. - FY2019-Q1WorsenedAnnual report
「As a result, revenue from the direct-to-consumer business for the three months ended 30 September was ¥1,934 million, up 49.1% year on year, representing substantial revenue growth. Advertising expenses of ¥1,734 million, compared with ¥1,209 million in the previous fiscal year, were recorded as a result of active investment with a view to the future, resulting in a segment loss of ¥577 million, compared with a loss of ¥488 million in the previous fiscal year.」
The mail-order business achieved substantial revenue growth, but segment losses widened year on year due to the burden of upfront investments including advertising expenses, and the pattern of rapid growth accompanied by losses continues. - FY2018-Q3WorsenedAnnual report
「As a result, for the nine months ended 31 December, consolidated revenue was ¥4,759 million, up 86.8% year on year, and the segment loss was ¥520 million, compared with a loss of ¥320 million in the same period of the previous year.」
Revenue in the mail-order business increased 86.8% year on year, but segment losses widened from the same period a year earlier due to upfront investments including ¥3,212 million in advertising expenses, and the pattern of rapid growth accompanied by investment costs continues. - FY2018-Q2WorsenedAnnual report
「As a result, for the six months ended 31 December, consolidated revenue was ¥2,971 million, up 100.9% year on year, and the segment loss was ¥999 million, compared with a loss of ¥542 million in the same period of the previous year.」
Although mail-order business revenue increased 100.9% year on year, the segment loss widened to ¥999 million due in part to ¥2,631 million in advertising expenses, indicating a greater burden from upfront investment. - FY2018-Q1WorsenedAnnual report
「As a result, mail-order business revenue increased substantially to ¥1,296 million, up 100.7% year on year. In addition to growth in the existing mail-order business, the performance of 株式会社フューチャーラボ, which became a subsidiary in the previous fiscal year, contributed to the increase. In terms of profitability, the company recorded ¥1,209 million in advertising expenses and other costs as part of its investment focused on the future, resulting in a segment loss of ¥555 million, compared with a ¥433 million loss in the same period of the previous year.」
Although revenue increased substantially, the segment loss widened from ¥433 million in the same period of the previous year to ¥555 million due to upfront investment in advertising and other expenses, indicating a greater investment burden. - FY2017-Q3AdvancedAnnual report
「In the mail-order business, the company concentrated aggressive investment focused on the future in the first half, resulting in costs being incurred ahead of revenue. However, monetization has steadily progressed, and performance has improved substantially year on year.」
Although the burden of upfront investment continues, the company has clearly indicated progress in monetizing the mail-order business and year-on-year improvement in performance. - FY2017-Q2RestatedAnnual report
「Mail-order business revenue was ¥1,479 million, up 42.8% year on year, while the segment posted a loss of ¥542 million, compared with a ¥494 million loss in the same period of the previous year, partly due to ¥1,255 million in advertising expenses.」
The cumulative quarterly figures reconfirm the pattern of expanding mail-order revenue alongside segment losses caused by upfront advertising investment. - FY2017-Q1RestatedAnnual report
「Mail-order business revenue was ¥646 million, up 53.6% year on year, while the segment posted a loss of ¥433 million, compared with a ¥371 million loss in the same period of the previous year, partly due to ¥700 million in advertising expenses.」
The latest quarterly results reconfirm the pattern of expanding mail-order revenue alongside segment losses caused by upfront advertising investment. - FY2016-Q3First statedAnnual report
「Revenue from the mail-order business was ¥1,581 million, and the segment loss was ¥415 million. In terms of profitability, aggressive upfront investment was concentrated in the first half, resulting in advertising expenses being incurred ahead of revenue. However, the business continued to achieve monthly profitability from January 2016, and the company expects the mail-order business itself to increase revenue and become profitable.」
Although the business expanded in scale, it recorded a cumulative segment loss while achieving monthly profitability from January 2016.