Improving the Earnings Structure by Curbing Low-Margin Sales
First written in FY2019. 1 of 3 entries say "Advanced", first in FY2023. Latest entry: FY2025.
Applied moved to the "Worse" side of this theme in 2025, 1 year before the typical company in this theme (2026).
The whole theme swung hardest in 2025: 4 of 31 companies on the "Worse" side.
0 other companies' latest entry also says "Softened".
- FY2025SoftenedAnnual report
「The main factor was a 0.9-percentage-point decline in the gross profit margin, as revenue increased amid rising replacement demand ahead of the end of Windows 10 support in October 2025, while the proportion of wholesale sales increased.」
The proportion of wholesale sales increased, causing the gross profit margin to decline by 0.9 percentage points. The company indicates that wholesale sales accompanied by revenue growth, rather than curbing low-gross-margin sales, were the focus. - FY2023AdvancedAnnual report
「Gross profit for the fiscal year under review was ¥8.625 billion, down 3.4% year on year. The main factor was a decrease in low-margin wholesale sales, which lifted the gross profit margin by 2 percentage points.」
As a result of curbing and reducing low-margin wholesale sales, revenue decreased while the gross profit margin increased by 2 percentage points. - FY2019First statedAnnual report
「This was because sales to wholesalers in the PC and gaming businesses remained sluggish after the company curbed low-gross-margin sales to improve its earnings structure and pursue more efficient management.」
The company stated that it had curbed low-gross-margin sales and prioritised improving its earnings structure over sales volume.