Scaling back low-margin products in the textile business and shifting to high-margin products
First written in FY2016. 11 of 34 entries say "Worsened", first in FY2020-Q2. Latest entry: FY2026.
Unitika moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2020: 2 of 8 companies on the "Worse" side.
4 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「In the apparel textiles business, the transfer and other arrangements were largely completed by 31 December 2025. In the industrial materials business, sales of civil engineering materials and lifestyle-related products were strong against a backdrop of recovering market conditions, but the business as a whole reported lower sales and lower earnings due to the impact of the transfers and other arrangements.」
The transfer and other arrangements for the apparel textiles business were largely completed by 31 December 2025, further implementing the downsizing and exit from low-margin businesses. Meanwhile, the remaining textile business posted an operating loss of ¥515 million. - FY2026-H1AdvancedAnnual report
「In the industrial textiles business, sales of polyester fibers, comprising staple fiber and high-tenacity yarn, declined, but earnings improved significantly due to the effects of reviewing the product mix and revising prices. Monofilament earnings remained strong. As a result, the textile business segment reported lower sales and a reduced loss, with sales of ¥14,679 million, down 2.5% year on year, and an operating loss of ¥179 million, compared with a loss of ¥574 million in the same quarter of the previous year.」
Reviewing the product mix and revising prices reduced the textile business's operating loss from ¥574 million in the year-earlier period to ¥179 million. The implementation of the business structure reforms also became more concrete through the execution of agreements to transfer the polyester polymerization, filament and other businesses. - FY2025AdvancedAnnual report
「At a meeting of the Board of Directors held on 20 June 2025, the Company resolved to enter into a basic agreement with SEIREN CO.,LTD. concerning the transfer and other arrangements relating to the polyester fiber-related and polymerization businesses of the Company and its consolidated subsidiary Nippon Ester Co., Ltd., and executed the agreement on the same date.」
Regarding the business structure reforms covering textiles, nonwoven fabrics and industrial textiles, the Company reached a basic agreement toward the transfer and other arrangements of businesses to SEIREN CO.,LTD. and presented a schedule calling for the definitive agreement in early August 2025 and closing around the end of December 2025. - FY2025-H1WorsenedAnnual report
「In the apparel textiles business, sales in the core uniform segment were firm in government-related demand, while private-sector demand showed some signs of recovery but remained generally weak. In terms of earnings, higher costs resulting from the weaker yen had a significant impact, and the increase in costs exceeded the benefits of the price revisions. As a result, the textile business segment reported lower sales and a lower profit, with sales of ¥15,049 million, down 2.8% year on year, and an operating loss of ¥574 million, compared with a loss of ¥445 million in the same quarter of the previous year.」
Although price revisions were implemented, higher costs resulting from the weaker yen exceeded their benefits, widening the textile business's operating loss from ¥445 million in the year-earlier period to ¥574 million. - FY2024AdvancedAnnual report
「Earnings improved through the effects of price revisions and cost reductions, narrowing the operating loss from the previous fiscal year. As a result, the textile business reported lower sales and a reduced loss, with sales of ¥33,004 million, down 1.4% year on year, and an operating loss of ¥523 million, compared with a loss of ¥1,354 million in the previous fiscal year.」
Price revisions and cost reductions reduced the textile business's operating loss from ¥1,354 million to ¥523 million. Although the business remained loss-making, this demonstrated tangible progress in improving profitability. - FY2024-Q3AdvancedAnnual report
「In the apparel textiles business, the core uniform segment remained firm in the third quarter, but other segments struggled somewhat. The global business was on a recovery trend year on year, but the industrial materials business struggled. Profitability improved through the effects of price revisions and cost reductions, narrowing the operating loss year on year.」
Profitability improved through price revisions and cost reductions, reducing the textile business's operating loss from ¥1,343 million in the same quarter of the previous year to ¥703 million. - FY2024-Q2AdvancedAnnual report
「In the apparel textiles business, sales in the core uniform segment recovered. Sales in the sustainable textiles segment were also generally firm, but the industrial materials and global businesses performed poorly. In response to higher costs such as raw material and fuel prices and the weaker yen, the Company revised prices and worked to reduce costs, including selling, general and administrative expenses. As a result, profitability improved and the loss narrowed significantly year on year. As a result, sales in the textile business segment were ¥15,488 million, down 3.7% year on year, and operating loss was ¥445 million, compared with a loss of ¥906 million in the same quarter of the previous year.」
Profitability improved through price revisions and reductions in selling, general and administrative expenses and other costs, reducing the operating loss from ¥906 million in the year-earlier period to ¥445 million. However, the textile business remained in the red on an operating basis. - FY2024-Q1Profitability improved through price revisions, but the operating loss continuedAnnual report
「In the apparel textiles business, price revisions were implemented in response to cost increases, including higher raw material and fuel prices that had continued since the previous year, resulting in progress in restoring profitability. However, the decline in industrial material applications and global sales also affected results, and the operating loss was not eliminated.」
Profitability improved through price revisions, but the operating loss remained due to declines in industrial material applications and global sales. - FY2023WorsenedAnnual report
「In the apparel textiles business, sales of uniforms and women's apparel moved toward recovery compared with the COVID-19 period. Sales also increased following product price revisions. However, costs rose substantially due to higher import costs resulting from the weaker yen and soaring raw material and fuel prices, and the price revisions were insufficient to offset the increase, significantly affecting earnings.」
Although sales increased due to recovering demand and product price revisions, higher costs resulting from the weaker yen and higher raw material and fuel prices could not be offset by the price revisions, and the operating loss widened to ¥1,535 million from ¥610 million in the previous fiscal year. - FY2023-Q3WorsenedAnnual report
「In the apparel textiles business, the deterioration in economic conditions in Europe put the brakes on the recovery in overseas sales, but domestic demand recovered, particularly in the core uniform and women's apparel segments. Meanwhile, cost increases throughout the supply chain, including higher raw material and fuel prices, the weaker yen and soaring transportation costs, continued, causing earnings to deteriorate significantly. As a result, sales in the textile business segment were ¥23,103 million, up 12.4% year on year, and operating loss was ¥1,491 million, compared with a loss of ¥689 million in the previous year.」
Although domestic demand for uniforms and women's apparel recovered, the operating loss widened from ¥689 million in the same quarter of the previous year to ¥1,491 million due to deteriorating economic conditions in Europe and higher costs throughout the supply chain. - FY2023-Q2WorsenedAnnual report
「In the apparel textiles business, signs of recovering demand emerged, particularly in the core uniform and women's apparel segments. Overseas sales also increased. However, earnings deteriorated significantly due to higher costs throughout the supply chain, including higher raw material and fuel prices, the weaker yen and soaring transportation costs. As a result, sales in the textile business segment were ¥15,274 million, up 13.3% year on year, and operating loss was ¥1,004 million, compared with a loss of ¥444 million in the previous year.」
Although demand recovery and growth in overseas sales were observed, the operating loss widened from ¥444 million in the year-earlier period to ¥1,004 million due to higher raw material and fuel prices, the weaker yen and soaring transportation costs. - FY2023-Q1WorsenedAnnual report
「In the apparel textiles business, earnings remained under severe pressure as soaring raw material and fuel prices, processing costs and logistics expenses, together with the weaker yen, led to a substantial increase in costs that could not be sufficiently passed through to selling prices. Sales in the core uniform segment recovered to some extent, but the bedding and sportswear segments continued to struggle. As a result, sales in the textile business segment were ¥7,554 million, up 6.5% year on year, and operating loss was ¥511 million, compared with a loss of ¥165 million in the previous year.」
While the Company was unable to make sufficient price increases to pass through higher costs, the textile business's operating loss widened from ¥165 million in the year-earlier period to ¥511 million. The uniform segment saw a partial recovery, while the bedding and sportswear segments continued to struggle. - FY2022-Q3WorsenedAnnual report
「The apparel textiles business continued to be affected by the spread of COVID-19. In the core uniform segment, some industries showed signs of recovering demand, while other segments such as women's apparel, sportswear and bedding remained in difficult conditions. Sales declined as demand for medical gowns, which had been strong in the previous year, settled down. As a result, sales in the textile business segment were ¥20,563 million, compared with ¥29,147 million in the previous year, and operating loss was ¥689 million, compared with a loss of ¥133 million in the previous year.」
Due to the lull in demand for medical gowns and weak performance in the women's apparel, sportswear and bedding segments, sales declined from ¥29,147 million in the same quarter of the previous year to ¥20,563 million, while operating loss widened from ¥133 million to ¥689 million. - FY2022-Q2WorsenedAnnual report
「The apparel textiles business continued to be significantly affected by the spread of COVID-19. In the core uniform segment, there were signs of recovering demand, while other segments such as women's apparel, sportswear and bedding remained in difficult conditions. Earnings declined as demand for medical gowns, which had been strong in the previous year, settled down. As a result, sales in the textile business segment were ¥13,476 million, compared with ¥20,073 million in the previous year, and operating loss was ¥444 million, compared with operating profit of ¥165 million in the previous year.」
The textile business deteriorated from operating profit of ¥165 million in the year-earlier period to an operating loss of ¥444 million due to the lull in demand for medical gowns and weak performance in several apparel textile segments. - FY2022-Q1WorsenedAnnual report
「In the apparel textiles business, demand for medical gowns, which had increased in the previous year, settled down. In the core uniform segment, some applications showed signs of recovery and medical applications remained firm, but service and office-related applications stagnated. The women's apparel and sportswear segments also remained weak, leaving conditions generally difficult. As a result, sales in the textile business segment were ¥7,093 million, compared with ¥9,663 million in the previous year, and operating loss was ¥165 million, compared with operating profit of ¥82 million in the previous year.」
Demand for medical gowns settled down, while service and office-related applications and the women's apparel and sportswear segments also stagnated. The textile business moved from operating profit of ¥82 million in the year-earlier period to an operating loss of ¥165 million, reflecting deterioration in the business environment and earnings. - FY2021-Q3Medical applications provided support, but the operating loss continuedAnnual report
「In the apparel textiles business within the textile business segment, the spread of COVID-19 caused the core uniform segment, including hotel, restaurant and office applications, to stagnate, while other general apparel segments also remained broadly weak. In contrast, sales of medical gowns and protective clothing applications remained strong, supporting earnings. As a result, sales in the textile business segment were ¥29,147 million, down 1.7% from the same quarter of the previous year, and operating loss was ¥133 million, compared with a loss of ¥295 million in the same quarter of the previous year.」
Sales of medical gowns and protective clothing applications supported earnings, reducing the operating loss from ¥295 million in the year-earlier period to ¥133 million, but the textile business remained in the red on an operating basis. - FY2021-Q2Medical applications supported earnings, returning the business to profitabilityAnnual report
「In the apparel textiles business, conditions remained generally severe, including in the core uniform and women's apparel segments, due to the spread of COVID-19. However, sales for medical gowns and protective clothing applications increased, supporting earnings. As a result, sales in the textile business were ¥20,073 million, down 2.0% from the same quarter of the previous year, and operating profit was ¥165 million, compared with an operating loss of ¥79 million in the same quarter of the previous year.」
Growth in sales of medical gowns and protective clothing applications supported earnings amid weak performance and deteriorating earnings in the traditional textile business, and operating results turned from a loss in the year-earlier period to a profit of ¥165 million. - FY2020WorsenedAnnual report
「In the industrial textiles business, some areas, including civil engineering and construction applications for polyester high-tenacity yarn, had firm sales, but staple fiber, composite fibers and other products were generally weak. Earnings also deteriorated due to cost increases and other factors.」
Although sales remained firm in some applications and the shift toward higher value added continued, the textile business posted an operating loss of ¥589 million due to weak performance in staple fiber and composite fibers and higher costs. - FY2020-Q3WorsenedAnnual report
「In the industrial textiles business, staple fiber performed steadily in household and industrial material applications, but exports remained weak. Polyester high-tenacity yarn maintained steady performance in material applications, although sales in civil engineering and construction applications declined. Fisheries-related applications and others were generally weak. In the apparel textiles business, the sportswear, women's apparel and bedding segments continued to struggle, while sales in the uniform segment, which had previously performed steadily mainly in workwear applications, declined. Sales of denim fabrics for overseas markets were approximately unchanged from the previous year. As a result, sales in the textile business were ¥36,055 million, down 4.7% year on year, and operating loss was ¥671 million, compared with a loss of ¥121 million in the same quarter of the previous year.」
Although some applications remained firm, exports, civil engineering and construction applications, fisheries-related applications, and several apparel textile segments were weak. Operating loss widened from ¥121 million in the year-earlier period to ¥671 million. - FY2020-Q2WorsenedAnnual report
「In the industrial textiles business, sales of staple fiber remained firm in applications for household and industrial materials, but exports were weak. Sales of polyester high-tenacity yarn remained firm in civil engineering and construction applications, while demand for composite fibers in material applications declined. In the apparel textiles business, the core uniform segment performed well, particularly in workwear applications, but sales in the sportswear and bedding segments remained weak, and exports of high-performance textile base yarn also declined. As a result, sales in the textile business were ¥24,840 million, down 1.5% year on year, and operating loss was ¥323 million, compared with a loss of ¥24 million in the same quarter of the previous year.」
Although sales were firm in some applications, exports, material applications for composite fibers, and some applications in apparel textiles were weak, widening the textile business's operating loss from ¥24 million in the year-earlier period to ¥323 million. - FY2020-Q1RestatedAnnual report
「In the industrial textiles business, polyester staple fiber performed steadily in applications for household materials, and polyester high-tenacity yarn also performed steadily in civil engineering and construction applications, but other applications were generally weak.」
The business continues to be operated around certain applications for staple fiber and high-tenacity yarn, but other applications are generally weak. - FY2019-Q3RestatedAnnual report
「In the industrial textiles business, staple fiber performed weakly in applications for household materials and in overseas sales, but sales of high-value-added products such as composite fibers remained firm. Civil engineering and construction applications for polyester high-tenacity yarn continued to perform steadily. However, earnings declined due to cost factors including higher raw material and fuel prices.」
The Company continues to pursue a sales policy centered on high-value-added products following the downsizing of low-margin products, but earnings declined due to cost factors including higher raw material and fuel prices. - FY2019-Q2RestatedAnnual report
「Staple fiber performed weakly in applications for household materials, but sales of high-value-added products such as composite fibers remained firm. Polyester high-tenacity yarn saw increased sales as civil engineering and construction applications remained solid. However, earnings declined significantly due to the substantial impact of higher raw material and fuel prices.」
The Company continues to pursue a sales policy centered on high-value-added products, but earnings in the industrial textiles business declined due to higher raw material and fuel prices. - FY2019-Q1RestatedAnnual report
「In the industrial textiles business, sales of polyester high-tenacity yarn were generally firm, led by high-value-added products, while polyester staple fiber also performed steadily. However, earnings remained sluggish, partly due to higher raw material prices.」
The Company states that it continues to pursue a sales policy centered on high-value-added products, while earnings remained sluggish due to higher raw material prices. - FY2018RestatedAnnual report
「In the industrial textiles business, the business scale declined as a result of the business structure reforms. However, sales of polyester staple fiber remained at approximately the previous year's level as the Company promoted sales of high-value-added products such as composite fibers. Polyester high-tenacity yarn performed weakly in applications such as civil engineering, but sales volume of high-value-added products increased and earnings were secured as planned.」
The Company continues to sell high-value-added products and secure earnings as planned, based on the business scale following the business structure reforms. - FY2018-Q2RestatedAnnual report
「Sales of high-value-added products such as composite fibers remained firm for polyester staple fiber, securing sales at approximately the same level as in the year-earlier period. Sales of polyester high-tenacity yarn declined due to weak performance in applications such as construction materials, but sales of high-value-added products increased and earnings were secured as planned.」
The Company continues to report sales of high-value-added products and earnings secured as planned, based on the reduced business scale following the business structure reforms. - FY2018-Q1AdvancedAnnual report
「In the industrial textiles business, sales of polyester high-tenacity yarn remained firm in civil engineering applications, while sales of high-value-added products in polyester staple fiber also increased, enabling both businesses to secure earnings above plan.」
The Company reported specific progress in securing earnings above plan for both polyester high-tenacity yarn and staple fiber, driven by growth in sales of high-value-added products. - FY2017-Q3RestatedAnnual report
「In the industrial textiles business, sales of polyester high-tenacity yarn increased as the product mix shifted toward high-value-added products such as composite fibers, resulting in higher earnings. Sales of polyester staple fiber declined significantly following the downsizing resulting from the business structure reforms carried out through the previous fiscal year, but the Company promoted sales expansion of high-value-added products and secured earnings as planned.」
The Company continues to report a shift in the product mix toward high-value-added products, sales expansion, and earnings secured as planned following the downsizing of low-margin businesses through the business structure reforms. - FY2017-Q2Cited as achievedAnnual report
「Sales of polyester staple fiber declined significantly following the downsizing resulting from the business structure reforms carried out through the previous fiscal year, but earnings were secured as planned.」
This again demonstrates that, although sales declined as a result of the downsizing associated with the business structure reforms, including low-margin products, earnings were secured as planned. - FY2017-Q1Cited as achievedAnnual report
「Sales of polyester staple fiber declined following the downsizing of low-margin businesses carried out through the previous fiscal year, but earnings were secured as planned.」
Following the downsizing of low-margin businesses through the previous fiscal year, the Company demonstrated that it secured earnings as planned despite the decline in sales. - FY2016AchievedAnnual report
「Earnings improved significantly as the downsizing of low-margin businesses associated with the business structure reforms was completed and the shift to high-value-added products progressed.」
The Company has completed the downsizing of low-margin products in industrial textiles and plans to continue introducing high-margin products such as composite fibers, while reducing costs at each stage of procurement, production, sales and administration.