Improving and prioritizing the ordinary profit margin on sales and ROE
First written in FY2017. 3 of 13 entries say "Advanced", first in FY2018. Latest entry: FY2026.
Beauty Kadan Holdings moved to the "Worse" side of this theme in 2026, 5 years after the typical company in this theme (2021).
The whole theme swung hardest in 2020: 9 of 32 companies on the "Worse" side.
3 other companies' latest entry also says "Softened".
- FY2026SoftenedAnnual report
「The Group had set targets for the fiscal year ending June 2026 of revenue of ¥7,700 million, operating income of ¥120 million, net income attributable to owners of the parent of ¥40 million and ROE of 15.9%. ... As a result, ROE was negative 34.0%, significantly below the plan. For the fiscal year ending June 2027, the Group will continue pursuing the key strategies set out in its medium-term management plan for the period from the fiscal year ended June 2025 to the fiscal year ending June 2027, namely strengthening its management base, expanding sales in each business and promoting sustainability management and initiatives to enhance corporate value. Based on the current business environment and the results for the consolidated fiscal year, the Group forecasts consolidated revenue of ¥7,400 million, operating income of ¥10 million and net income attributable to owners of the parent of ¥5 million for the fiscal year ending June 2027.」
The revenue, earnings and ROE targets for the fiscal year ending June 2026 were not achieved, and the revenue and earnings forecasts for the fiscal year ending June 2027 also fell substantially below the previous plan. No ROE figure was provided for the fiscal year ending June 2027. - FY2025RaisedAnnual report
「Our group regards improving capital efficiency as an important issue and aims to achieve ROE of at least 15% over the medium to long term.」
Actual ROE for the fiscal year ended June 2025 was 7.4%, below the planned 12.3%, while a medium- to long-term target of ROE of at least 15% was explicitly disclosed. - FY2024SoftenedAnnual report
「Our group set targets for the fiscal year ended June 2024 of revenue of ¥6,600 million, operating profit of ¥150 million, net income attributable to owners of the parent of ¥110 million, and ROE of 18.9%. As a result, ROE was 5.2%. For the fiscal year ending June 2025, we will focus on the priority strategies newly set out in the medium-term management plan for the fiscal years ending June 2025 through June 2027: strengthening the management foundation, expanding revenue in each business, promoting sustainability management, and enhancing corporate value. We aim to achieve revenue of ¥7,600 million, operating profit of ¥110 million, net income attributable to owners of the parent of ¥70 million, and ROE of 12.3%.」
Actual ROE for the fiscal year ended June 2024 was 5.2%, compared with the target of 18.9%. Under the new plan, the revenue target was raised to ¥7,600 million, while the operating profit, net income and ROE targets were lowered to ¥110 million, ¥70 million and 12.3%, respectively. - FY2023RaisedAnnual report
「For the fiscal year ending June 2024, we will focus on the priority strategies set out in the medium-term management plan for the fiscal years ending June 2022 through June 2024: expanding revenue in core businesses, strengthening the business foundation, and developing new services and expanding new businesses. We aim to achieve revenue of ¥6,600 million, operating profit of ¥150 million, net income attributable to owners of the parent of ¥110 million, and ROE of 18.9%.」
Actual ROE for the fiscal year ended June 2023 was 17.2%, falling short of the target of 17.5%, while the ROE target for the fiscal year ending June 2024 was raised to 18.9%, with revenue and profit targets also set. - FY2022AchievedAnnual report
「Our group set targets for the fiscal year ended June 2022 of revenue of ¥5,600 million, operating profit of ¥50 million, net income attributable to owners of the parent of ¥50 million, and ROE of 11.7%. As a result, ROE was 19.4%. For the fiscal year ending June 2023, we will aim to achieve revenue of ¥6,150 million, operating profit of ¥110 million, net income attributable to owners of the parent of ¥90 million, and ROE of 17.5%.」
The company explained that it achieved its revenue, profit and ROE targets for the fiscal year ended June 2022, and set new targets for the fiscal year ending June 2023 of revenue of ¥6,150 million, operating profit of ¥110 million, net income attributable to owners of the parent of ¥90 million, and ROE of 17.5%. - FY2022-Q1AdvancedAnnual report
「In this environment, the Group launched a new medium-term management plan beginning in the fiscal year ending June 2022. Its basic policy is to “achieve sustainable growth by improving the profitability of existing businesses and creating new businesses, thereby leading to higher corporate value and a higher share price.” Its priority strategies are “expanding sales in the core business,” “strengthening the business platform,” “launching new services and expanding new businesses,” and “enhancing corporate value,” and we are working to implement them.」
A new medium-term management plan began with the fiscal year ending June 2022 as its first year. With enhancing corporate value and raising the share price as its basic policy, the company set out 4 priority strategies and moved into the implementation phase. - FY2021AdvancedAnnual report
「Our group set targets for the fiscal year ended June 2021 of revenue of ¥5,231 million, an operating loss of ¥120 million, a net loss attributable to owners of the parent of ¥31 million, and ROE of negative 10.2%. As a result, ROE was 24.0%. For the fiscal year ending June 2022, we will focus on the priority strategies set out in the newly formulated medium-term management plan for the fiscal years ending June 2022 through June 2024: expanding revenue in core businesses, strengthening the business foundation, and developing new services and expanding new businesses. We aim to achieve revenue of ¥5,600 million, operating profit of ¥50 million, net income attributable to owners of the parent of ¥50 million, and ROE of 11.7%.」
ROE for the fiscal year ended June 2021 was 24.0%, compared with the planned negative 10.2%, exceeding the plan. For the fiscal year ending June 2022, new targets were set at revenue of ¥5,600 million, operating profit of ¥50 million, net income attributable to owners of the parent of ¥50 million, and ROE of 11.7%. - FY2020SoftenedAnnual report
「For the fiscal year ended June 2020, ROE was negative 50.9%, compared with the target of 19.8% and negative 1.0% in the previous fiscal year. For the fiscal year ending June 2021, performance targets were left undetermined because a difficult business environment was expected to continue, including smaller funerals and fewer attendees due to the spread of COVID-19 and postponed weddings.」
ROE for the fiscal year ended June 2020 was negative 50.9%, compared with the target of 19.8%, and performance targets for the fiscal year ending June 2021 were left undetermined. - FY2019RaisedAnnual report
「Under the medium-term management plan for the fiscal years ending June 2018 through June 2020, our group set final-year targets, after making certain revisions, of revenue of ¥6,000 million, operating profit of ¥140 million, net income attributable to owners of the parent of ¥110 million, and ROE of 19.8%. The targets for the fiscal year ended June 2019 were revenue of ¥6,110 million, operating profit of ¥179 million, net income attributable to owners of the parent of ¥112 million, and ROE of 19.1%.」
In addition to the previous policy of emphasizing key indicators, the company disclosed annual and final-year numerical targets under the medium-term management plan. For the fiscal year ended June 2019, revenue, profit and ROE fell short of plan, with actual ROE at negative 1.0%. - FY2018AdvancedAnnual report
「Our group places importance on the underlying profitability of its businesses and will work to improve its ordinary profit margin. From the perspective of shareholder-focused management, we also use return on equity (ROE) as an important management indicator in order to enhance corporate value.」
Under the policy of treating ROE as an important indicator, consolidated ROE improved from negative 5.6% in the previous fiscal year to 14.0% in the current fiscal year. - FY2017First statedAnnual report
「Our group places importance on the underlying profitability of its businesses and will work to improve its ordinary profit margin. From the perspective of shareholder-focused management, we also use return on equity (ROE) as an important management indicator in order to enhance corporate value.」
The policy of improving the ordinary profit margin and using ROE as an important management indicator was stated explicitly for the first time as a target management metric. No numerical targets were disclosed.