Profit Decline Due to Upfront Growth Investments and Shortfalls in Investment Recovery
First written in FY2016. 10 of 42 entries say "Advanced", first in FY2017. Latest entry: 2026-10-15.
The whole theme swung hardest in 2026: 19 of 79 companies on the "Worse" side.
9 other companies' latest entry also says "Cited as achieved".
- FY2027-H1Higher interim revenue and lower profitAnnual report
「Revenue for the current interim consolidated accounting period increased substantially to ¥7,086.531 million, up 35.1% year on year. However, primarily because new-customer acquisition costs increased ahead of future recurring revenue as new-customer acquisition expanded rapidly, operating profit was ¥350.005 million, down 30.7%; ordinary profit was ¥370.503 million, down 28.6%; and interim net profit attributable to owners of the parent was ¥230.463 million, down 34.9%.」
Although revenue in the interim consolidated results increased 35.1% year on year, operating profit, ordinary profit and interim net profit attributable to owners of the parent all declined because of the increase in new-customer acquisition costs ahead of revenue. - FY2026Full-year revenue and profit declineAnnual report
「Compared with the same period of the previous year, revenue declined 5.2%, operating profit declined 40.3%, ordinary profit declined 39.1%, and profit attributable to owners of the parent declined 42.3%.」
Following the full-year decline in revenue and increase in profit in the fiscal year ended February 2025, revenue, operating profit, ordinary profit and profit attributable to owners of the parent all fell below the previous year in the fiscal year ending February 2026. - 2026-04-14RestatedEarnings
「Compared with the same period of the previous year, revenue declined 5.2%, operating profit declined 40.3%, ordinary profit declined 39.1%, and profit attributable to owners of the parent declined 42.3%.」
For the full fiscal year ending February 2026, net sales and profit were below the previous year. - FY2026-H1Interim-period decline in sales and profitAnnual report
「Compared with the same period of the previous year, revenue declined 19.1%, operating profit declined 44.0%, ordinary profit declined 43.0%, and interim net profit attributable to owners of the parent declined 41.8%.」
During the interim consolidated accounting period, revenue, operating profit, ordinary profit and interim net profit attributable to owners of the parent all declined year on year. - FY2025Full-year revenue decline and profit growthAnnual report
「As a result, revenue for the fiscal year was ¥11,826.401 million, down 19.4% year on year; operating profit was ¥1,675.335 million, up 15.6%; ordinary profit was ¥1,704.469 million, up 15.1%; and profit attributable to owners of the parent was ¥1,205.882 million, up 21.2%.」
Following substantial revenue and profit growth in the previous consolidated fiscal year, revenue declined 19.4% in the fiscal year ending February 2025, while operating profit, ordinary profit and profit attributable to owners of the parent all increased. The exclusion of FM NORTH WAVE from the scope of consolidation following its transfer also contributed to the decline in revenue. - FY2025-H1Declining revenue and higher profitAnnual report
「As a result, revenue for the interim consolidated accounting period was ¥6,482.563 million, down 17.2% year on year; operating profit was ¥902.011 million, up 103.6%; ordinary profit was ¥910.149 million, up 100.1%; and interim net profit attributable to owners of the parent was ¥608.783 million, up 101.0%.」
Although revenue for the interim consolidated period declined 17.2% year on year, operating profit, ordinary profit and interim net profit attributable to owners of the parent all approximately doubled. - FY2025-Q1Lower Revenue and Return to ProfitabilityAnnual report
「As a result, revenue for the first quarter of the consolidated fiscal year was ¥3,269.762 million, down 16.8% year on year; operating profit was ¥389.388 million (an operating loss of ¥26.725 million in the same period of the previous year); ordinary profit was ¥394.919 million (an ordinary loss of ¥21.254 million); and profit attributable to owners of the parent was ¥266.084 million (a quarterly net loss attributable to owners of the parent of ¥24.835 million).」
Although revenue declined 16.8% year on year, operating profit, ordinary profit and profit attributable to owners of the parent all shifted from losses to profits. - FY2024Substantial full-year revenue and profit growthAnnual report
「As a result, revenue for the fiscal year was ¥14,665.867 million, up 49.2% year on year; operating profit was ¥1,449.145 million, up 184.1%; ordinary profit was ¥1,480.475 million, up 173.6%; and profit attributable to owners of the parent was ¥994.660 million, up 189.4%.」
Following the substantial profit decline in the previous consolidated fiscal year, revenue, operating profit, ordinary profit and profit attributable to owners of the parent all increased substantially for the full year. - FY2024-Q3Significant revenue and profit growthAnnual report
「As a result, revenue for the first nine months of the consolidated fiscal year was ¥11,299.852 million, up 63.5% year on year; operating profit was ¥1,075.956 million, up 49.7%; ordinary profit was ¥1,098.934 million, up 48.3%; and profit attributable to owners of the parent was ¥753.216 million, up 55.4%.」
Revenue, operating profit, ordinary profit and profit attributable to owners of the parent all increased year on year, marking a shift from the substantial profit decline in the previous consolidated fiscal year to higher revenue and profit. - FY2024-Q2Substantial revenue growth, but lower profitAnnual report
「As a result, revenue for the first six months of the consolidated fiscal year was ¥7,833.382 million, up 81.8% year on year; operating profit was ¥442.976 million, down 15.1%; ordinary profit was ¥454.800 million, down 15.9%; and profit attributable to owners of the parent was ¥302.829 million, down 14.8%.」
Although consolidated revenue increased substantially, by 81.8% year on year, operating profit, ordinary profit and profit attributable to owners of the parent were all below the same period of the previous year. - FY2024-Q1Substantial revenue growth and a shift to a lossAnnual report
「As a result, revenue for the first quarter of the consolidated fiscal year was ¥3,931.313 million, up 86.9% year on year; operating loss was ¥26.725 million (operating profit of ¥371.579 million in the same period of the previous year); ordinary loss was ¥21.254 million (ordinary profit of ¥385.278 million); and the quarterly net loss attributable to owners of the parent was ¥24.835 million (quarterly net profit attributable to owners of the parent of ¥257.551 million).」
Although revenue increased 86.9% year on year, the company recorded an operating loss, ordinary loss and quarterly net loss attributable to owners of the parent due to upfront investments, including advertising and promotional expenses. - FY2023Full-year revenue growth and substantially lower profitAnnual report
「As a result, revenue for the fiscal year was ¥9,831.486 million (¥9,510.793 million in the previous fiscal year), operating profit was ¥510.148 million (¥2,082.238 million), ordinary profit was ¥541.064 million (¥2,102.832 million), and profit attributable to owners of the parent was ¥343.672 million (¥1,342.485 million).」
Although full-year revenue exceeded the previous year, operating profit, ordinary profit and profit attributable to owners of the parent all declined substantially. - FY2023-Q2Lower revenue, lower profit for the cumulative second quarterAnnual report
「As a result, revenue for the first six months of the consolidated fiscal year was ¥4,308.501 million (¥4,937.484 million in the same period of the previous year), operating profit was ¥522.058 million (¥983.558 million), ordinary profit was ¥540.530 million (¥995.339 million), and profit attributable to owners of the parent was ¥355.289 million (¥684.330 million).」
For the first six months of the consolidated fiscal year, revenue, operating profit, ordinary profit and profit attributable to owners of the parent were all below the amounts reported for the same period of the previous year. - FY2023-Q1First-Quarter Revenue and Profit DeclineAnnual report
「As a result, revenue for the first quarter of the consolidated fiscal year was ¥2,103.877 million (¥2,372.070 million in the same period of the previous year), operating profit was ¥371.579 million (¥401.141 million), ordinary profit was ¥385.278 million (¥408.021 million), and profit attributable to owners of the parent was ¥257.551 million (¥288.309 million).」
In the first quarter, revenue, operating profit, ordinary profit and profit attributable to owners of the parent were all below the levels of the same period of the previous year. However, Kitano Kaiteki Kobo exceeded its plan, while the overall results include the impact of the change in accounting standards. - FY2022Lower revenue due to restrained advertising investment, with profit exceeding forecastsAnnual report
「Although the number of new customer acquisitions declined during the fiscal year, we did not overinvest to pursue near-term revenue. By maintaining the optimal advertising investment balance of 1.00 and striving to maximize profit, operating profit exceeded both the forecast and the previous fiscal year.」
Although the reporting company's revenue was ¥8,739.007 million due to restrained advertising investment, operating profit was ¥2,086.126 million, exceeding the plan and the previous fiscal year. Consolidated revenue was ¥9,510.793 million and operating profit was ¥2,082.238 million. - FY2022-Q3Reduced new customer acquisition and excess profit due to advertising curbsAnnual report
「During the third-quarter consolidated accounting period, although the number of new customers acquired declined, the Company avoided excessive investment focused on near-term sales and maintained an advertising investment balance of 1.00. As a result of prioritizing profit maximization, operating profit exceeded both the forecast and the year-earlier period.」
While the number of new customers acquired declined, the Company avoided excessive advertising investment, maintained an advertising investment balance of 1.00 and prioritized profit, resulting in operating profit exceeding the forecast and the year-earlier period. - FY2022-Q2Continued excess advertising investmentAnnual report
「As new customer acquisition was strong, the Company made strategic and proactive advertising investments to avoid lost opportunities, resulting in advertising expenses substantially exceeding the plan.」
Advertising investment exceeded the plan because priority was given to acquiring new customers. The Company explained that no year-on-year comparative analysis was conducted because this was the first year of consolidation. - FY2022-Q1Increased advertising investment and timing differences in profit recognitionAnnual report
「As new customer acquisition was strong, the Company made strategic and proactive advertising investments to avoid lost opportunities, resulting in advertising expenses substantially exceeding the plan.」
While advertising investment was expanded beyond the plan in response to strong new customer acquisition, shipment delays caused advertising expenses to be recognized ahead of revenue, pushing back the timing of revenue and profit recognition. - FY2021Full-year revenue and profit declineAnnual report
「Revenue for the fiscal year was ¥9,270.604 million, down ¥822.738 million from the previous fiscal year. Operating profit was ¥2,031.091 million, down ¥884.237 million.」
The full-year trend of revenue and profit growth through the fiscal year ending February 2020 reversed, and revenue, operating profit, ordinary profit and net income for the fiscal year ending February 2021 fell below the previous fiscal year. However, revenue and profit exceeded the initial forecasts. - FY2021-Q3Third-quarter period exceeds forecast, but cumulative revenue and profit declineAnnual report
「During the third-quarter accounting period, revenue and profit at every level substantially exceeded the forecasts, as the number of new customers acquired exceeded expectations and recurring sales from new customers acquired during the cumulative second-quarter period accumulated.」
The third-quarter accounting period exceeded the forecast due to the number of new customers acquired and the accumulation of recurring sales. However, revenue and profit declined year on year on a cumulative third-quarter basis, and cumulative profit was below plan. - FY2021-Q2Lower revenue and lower earningsAnnual report
「Profit at every level fell below the initial forecast because the Company invested more in advertising than initially planned and ROAS (Note 4), a measure of advertising investment efficiency, declined from April through June.」
During the cumulative second-quarter period, revenue was ¥4,592.280 million, ordinary profit was ¥1,033.810 million and quarterly net income was ¥717.827 million, down from revenue of ¥5,055.993 million, ordinary profit of ¥1,390.598 million and quarterly net income of ¥947.397 million in the year-earlier period. The Company attributed the shortfall against the profit forecast to increased advertising investment and lower ROAS. - FY2021-Q1Declining revenue and higher profitAnnual report
「As a result, revenue for the cumulative first-quarter period was ¥2,268.420 million, down 5.0% year on year. Operating profit was ¥561.299 million, up 1.4%, ordinary profit was ¥560.620 million, up 1.3%, and quarterly net income was ¥389.123 million, up 1.0%.」
While revenue declined 5.0% year on year due to challenges in acquiring new customers and operating advertising campaigns, operating profit, ordinary profit and quarterly net income all exceeded the year-earlier period. - FY2020AdvancedAnnual report
「As a result, revenue for the fiscal year was ¥10,093.343 million, up 21.4% from the previous fiscal year. Operating profit was ¥2,915.329 million, up 56.6%, ordinary profit was ¥2,923.996 million, up 57.1%, and net income was ¥1,974.824 million, up 52.7%.」
Following the previous fiscal year, which included investments in advertising and personnel and lower investment efficiency in some areas, revenue, operating profit, ordinary profit and net income all increased in the current fiscal year. - FY2020-Q3AdvancedAnnual report
「During the cumulative third-quarter period, revenue was ¥7,547.227 million, up 26.7% year on year, and operating profit was ¥2,182.517 million, up 49.2%, driven by continued efforts to strengthen the customer acquisition system and the major success of the "Needle Cosmetics–Deep Patch Series," achieving continued strong growth.」
Revenue for the cumulative third-quarter period was ¥7,547.227 million and operating profit was ¥2,182.517 million, increases of 26.7% and 49.2%, respectively, from the year-earlier period. - FY2020-Q2High growth and profit exceeding forecastAnnual report
「As a result, revenue for the cumulative second-quarter period was ¥5,055.993 million, up 28.0% year on year, and operating profit was ¥1,390.800 million, up 45.8%, achieving continued strong growth.」
Despite the impact of curbs on advertising placements, revenue and operating profit both exceeded the year-earlier period. Operating profit exceeded the initial forecast, while revenue fell below it due to the advertising curbs. - FY2020-Q1AdvancedAnnual report
「During the cumulative first-quarter period, revenue reached ¥2,387.187 million, up 25.2% year on year, driven by efforts to strengthen the customer acquisition system that had continued from the previous fiscal year. This was the highest quarterly revenue in the Company's history.」
Although the delayed shipment of Hyalo Deep Patch had an impact, first-quarter revenue increased 25.2% and operating profit increased 22.3%. The Company said that without the delay, revenue would have been expected to increase 38.2% and operating profit 57.3%. - FY2019Advertising investment prioritized, causing profit to miss forecastAnnual report
「In addition to intentionally investing ¥1,229.865 million more in advertising expenses than initially planned, lower advertising profitability than initially planned resulted in operating profit falling ¥568.725 million below the forecast.」
While revenue increased 57.1% from the previous fiscal year and operating profit increased 32.6%, operating profit fell below the forecast due to excess advertising investment and lower profitability. - FY2019-Q3AdvancedAnnual report
「As a result, revenue for the cumulative third-quarter period was ¥5,958.923 million, up 60.7% year on year. Operating profit was ¥1,462.629 million, up 66.5%, ordinary profit was ¥1,462.966 million, up 66.4%, and quarterly net income was ¥1,009.826 million, up 68.8%.」
While actively investing in advertising as a growth investment, revenue, operating profit, ordinary profit and quarterly net income all exceeded the year-earlier period, with revenue and profit growth continuing through the cumulative third-quarter period. - FY2019-Q2Profit growth continues, but advertising system issues cause profit to miss forecastAnnual report
「Operating profit fell below the forecast because operating issues with the Company's proprietary advertising optimization analysis and management system, which began operation in June 2018, resulted in an increase in advertising expenses that were not sufficiently profitable.」
While revenue increased 88.0% year on year and operating profit increased 146.9%, advertising expenses with insufficient profitability rose due to issues with the Company's advertising system, causing operating profit to fall below the forecast. - FY2019-Q1AdvancedAnnual report
「As a result, revenue for the cumulative first-quarter period was ¥1,907.003 million, up 118.5% year on year. Operating profit was ¥452.683 million, up 99.6%, ordinary profit was ¥453.015 million, up 99.9%, and quarterly net income was ¥315.583 million, up 100.0%.」
While continuing growth investments in advertising, personnel and other areas, revenue and profit at every level substantially exceeded the year-earlier period, and the profit growth trend progressed in the first quarter. - FY2018AdvancedAnnual report
「As a result, revenue for the fiscal year was ¥5,292.463 million, up 96.2% from the previous fiscal year. Operating profit was ¥1,403.881 million, up 159.0%, ordinary profit was ¥1,403.984 million, up 160.7%, and net income was ¥948.370 million, up 165.9%.」
Despite making growth investments in advertising, personnel and other areas, the Company achieved substantial full-year increases in revenue and profit at every level, confirming the continuation of the profit growth trend from the previous fiscal year. - FY2018-Q3AdvancedAnnual report
「As a result, revenue for the cumulative third-quarter period was ¥3,707.699 million, up 92.3% year on year. Operating profit was ¥878.395 million, up 157.4%, ordinary profit was ¥879.266 million, up 161.2%, and quarterly net income was ¥598.066 million, up 168.9%.」
Revenue, operating profit, ordinary profit and quarterly net income all substantially exceeded the year-earlier period, and the profit growth trend continued from the previous fiscal year through the cumulative third-quarter period. - FY2018-Q2AdvancedAnnual report
「As a result, revenue for the cumulative second-quarter period was ¥2,101.241 million, up 74.0% year on year. Operating profit was ¥386.270 million, up 102.5%, ordinary profit was ¥386.154 million, up 102.9%, and quarterly net income was ¥266.405 million, up 112.0%.」
The profit growth trend continued from the previous fiscal year and progressed during the cumulative second-quarter period, with revenue up 74.0% year on year, operating profit up 102.5%, ordinary profit up 102.9% and quarterly net income up 112.0%. However, the full-year profit forecast was maintained in light of the possibility of strengthening customer acquisition systems and increasing advertising expenses to acquire new customers in the future. - FY2018-Q1AdvancedAnnual report
「As a result, revenue for the cumulative first-quarter period was ¥872.723 million, up 47.3% year on year. Operating profit was ¥226.840 million, up 232.2%, ordinary profit was ¥226.673 million, up 224.5%, and quarterly net income was ¥157.801 million, up 248.2%.」
The profit growth trend seen in the previous fiscal year continued into the first quarter, with revenue, operating profit, ordinary profit and quarterly net income all substantially exceeding the year-earlier period. - FY2017AdvancedAnnual report
「As a result, revenue for the fiscal year was ¥2,696.859 million, up 21.3% from the previous fiscal year. Operating profit was ¥542.054 million, up 36.3%, ordinary profit was ¥538.497 million, up 36.9%, and net income was ¥356.728 million, up 57.3%.」
Operating profit, ordinary profit and net income exceeded the previous year for the full fiscal year, following the cumulative third-quarter period, confirming continued profit growth. - FY2017-Q3Shifted from a decline in profit to an increase in profitAnnual report
「As a result, revenue for the cumulative third-quarter period was ¥1,928.322 million, up 15.1% year on year. Operating profit was ¥341.278 million, up 13.2%, ordinary profit was ¥336.562 million, up 14.3%, and quarterly net income was ¥222.438 million, up 18.8%.」
Operating profit, ordinary profit and net income, which had declined year on year through the previous period, turned higher during the cumulative third-quarter period. - FY2017-Q2RestatedAnnual report
「As a result, revenue for the cumulative second-quarter period was ¥1,207.751 million, up 5.0% year on year. Operating profit was ¥190.753 million, down 11.9%, ordinary profit was ¥190.310 million, down 13.6%, and quarterly net income was ¥125.645 million, down 12.5%.」
While revenue increased, operating profit, ordinary profit and quarterly net income were below the year-earlier period, continuing to reflect the cost burden of growth initiatives and the resulting decline in profit. - FY2016First statedAnnual report
「Because investments to systematize the organization progressed more smoothly than expected, the Company made investments exceeding the initial plan. However, sales did not increase enough to recover those investments during the fiscal year, resulting in operating profit of ¥397.758 million, down 13.5% from the previous fiscal year.」
While revenue increased 14.5%, operating profit and ordinary profit declined as investments in advertising, personnel and outsourcing costs were made ahead of schedule.