Improving capital productivity and profit margins through business portfolio restructuring
First written in FY2019-Q1. 10 of 13 entries say "Advanced", first in FY2019-Q2. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026Operating margin improved while ROE declinedAnnual report
「Return on equity was 8.6% in the current consolidated fiscal year, compared with 8.8% in the previous consolidated fiscal year.」
Although operating profit increased as the business expanded, ROE declined from 8.8% to 8.6%. The operating margin improved from 3.0% to 3.1%, indicating divergent movements among capital efficiency indicators. - FY2024Operating margin improved, but ROE declinedAnnual report
「The operating margin improved from 3.0% in the previous fiscal year to 3.1%, due to higher profit from increased sales and the contribution of the environmental energy business.」
While the operating margin improved from 3.0% to 3.1%, ROE declined from 8.9% to 8.5% and the return on total assets declined from 4.7% to 3.5%, resulting in mixed trends across capital efficiency indicators. - FY2023AdvancedAnnual report
「Gross profit increased mainly due to higher sales, and the company also worked to restrain selling, general and administrative expenses. As a result, the operating margin was 1.9%, unchanged from the previous fiscal year.」
While continuing initiatives to increase value added and improve margins, the operating margin remained at 1.9%, unchanged from the previous fiscal year, indicating no improvement in the margin. - FY2022-Q1AdvancedAnnual report
「The Company will expand its product lineup while strengthening its ability to propose systems through further modularization and working to secure high-value-added projects.」
To increase the value added of its business portfolio, the company identified expansion of its product lineup, modularisation, stronger systems proposal capabilities and acquisition of high-value-added projects as initiatives. - FY2021AdvancedAnnual report
「Although gross profit declined mainly due to lower sales, the gross profit margin improved from 6.8% in the previous fiscal year to 7.8% as a result of launching new businesses and improving the product mix. The operating margin also improved from 1.7% in the previous fiscal year to 1.9% as a result of efforts to restrain selling, general and administrative expenses.」
The launch of new businesses, product mix improvements and restraint of selling, general and administrative expenses improved the gross profit margin from 6.8% to 7.8% and the operating margin from 1.7% to 1.9%. - FY2021-Q3AdvancedAnnual report
「In terms of earnings, the gross profit margin improved through product mix improvements following the launch of new businesses and other initiatives, and the company also worked to restrain selling, general and administrative expenses. As a result, the operating margin improved.」
The company stated that the gross profit margin and operating margin improved through product mix improvements following the launch of new businesses and restraint of selling, general and administrative expenses. - FY2021-Q2AdvancedAnnual report
「In terms of earnings, the gross profit margin improved as the product mix improved following the launch of new businesses and other initiatives, and selling, general and administrative expenses also declined. However, operating profit decreased due to the impact of lower sales and other factors.」
The product mix improved following the launch of new businesses and other initiatives, raising the gross profit margin, while selling, general and administrative expenses also declined. However, operating profit decreased due to the impact of lower sales. - FY2021-Q1AdvancedAnnual report
「In terms of earnings, the gross profit margin improved as the product mix improved following the launch of new businesses and other initiatives. Although the company also worked to reduce selling, general and administrative expenses, operating profit declined, mainly due to lower sales.」
The company advanced improvements to its business portfolio and product mix and reduced selling, general and administrative expenses, while the decline in sales caused operating profit to decrease. - FY2020-Q1AdvancedAnnual report
「The segment declined year on year, mainly due to the smaller reversal of the allowance for doubtful accounts collected from prior fiscal years in the first quarter of the previous consolidated fiscal year and the impact of inventory write-downs.」
While advancing initiatives to improve margins following the restructuring and integration of the business portfolio, segment profit in the semiconductor and electronic components business declined 31.9% year on year due to the reversal of the allowance for doubtful accounts and inventory write-downs. - FY2019AdvancedAnnual report
「During the current consolidated fiscal year, the proportion of sales generated by relatively low-margin products declined, while high-value-added businesses, including EMS and electronic equipment, expanded. As a result, the impact on net sales was minimised, and net sales amounted to ¥15,513 million, down 1.6% from the previous consolidated fiscal year. The gross profit margin improved significantly, rising from 5.2% in the same period of the previous year to 7.5%.」
The gross profit margin rose from 5.2% to 7.5% despite lower sales, driven by a lower proportion of low-margin products and the expansion of high-value-added businesses, including EMS and electronic equipment. - FY2019-Q3AdvancedAnnual report
「Through the restructuring of our business portfolio, centered on our core semiconductor and electronic components businesses, the gross profit margin rose from 5.3% in the same period of the previous year to 7.4%, while the operating margin rose from 1.6% to 2.4%.」
Regarding business portfolio restructuring, the company disclosed measurable progress during the nine-month period in the form of increases in the gross profit margin and operating margin. - FY2019-Q2AdvancedAnnual report
「Through the restructuring of our business portfolio, centered on our core semiconductor and electronic components businesses, the gross profit margin rose from 5.2% in the same period of the previous year to 6.9%, while the operating margin rose from 1.6% to 2.3%.」
Regarding the business portfolio restructuring initiative, the company disclosed measurable progress in the form of increases in the gross profit margin and operating margin during the six-month period of the current fiscal year. - FY2019-Q1First statedAnnual report
「Against this backdrop, the Group has focused on expanding high-value-added businesses, including EMS (electronics manufacturing services) at its own factories, centred on its Sony semiconductor and electronic components business, expanding its product range and technological capabilities, and creating new businesses. At the same time, it has worked to restructure its business portfolio to improve capital productivity and profit margins. Through the restructuring of its business portfolio centred on its core semiconductor and electronic components businesses, the gross profit margin rose from 5.6% in the same period of the previous year to 7.2%, while the operating margin rose from 1.4% to 2.0%.」
The company disclosed for the first time, as a standalone initiative, efforts to restructure its business portfolio centred on its core semiconductor and electronic components businesses, with the aim of improving capital productivity and profit margins.