Persistently High Raw Material Costs and Rising SG&A Expenses in the Healthcare Business
First written in FY2017-Q1. 18 of 31 entries say "Worsened", first in FY2017-Q2. Latest entry: 2026-08-03.
Daitobo moved to the "Worse" side of this theme in 2016, 5 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 5 of 10 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- 2026-08-03WorsenedEarnings
「In terms of earnings, the gross profit margin declined due to higher costs, and the operating loss widened year on year.」
Higher costs in the healthcare business materialized as a wider operating loss. - FY2026WorsenedAnnual report
「In terms of profit and loss, in addition to higher procurement costs and lower revenue, the recognition of an ¥11 million write-down on long-held inventory and ¥14 million in amortization of goodwill caused the loss to worsen from the previous fiscal year. As a result, revenue from the healthcare business was ¥1,052 million, down 8.6% from the previous fiscal year, while operating loss was ¥29 million, compared with an operating loss of ¥13 million in the previous fiscal year.」
Higher procurement costs, lower revenue, the write-down of long-held inventory and amortization of goodwill widened the healthcare business's operating loss from ¥13 million to ¥29 million. - FY2026-H1WorsenedAnnual report
「Although firm underlying demand remained in the health business division, overall performance was sluggish and revenue fell below that of the same period of the previous year due to delays in procuring materials and the impact of the prolonged hot weather. In the general bedding division, although spring merchandise performed poorly due to unsettled weather, revenue exceeded that of the same period of the previous year as the division moved to procure winter merchandise early and standard products such as alpaca blankets performed well. In terms of profit and loss, although selling, general and administrative expenses declined due to a reduction in headcount, the decline in revenue and gross margin had an impact, and the operating loss widened. As a result, revenue from the healthcare business was ¥466 million, down 13.3% year on year, while operating loss was ¥16 million, compared with an operating loss of ¥8 million in the same period of the previous year.」
Delays in procuring materials, hot weather, and declines in revenue and gross margin caused the healthcare business to record a 13.3% decline in revenue, while operating loss widened from ¥8 million to ¥16 million. - FY2025-H1MitigatedAnnual report
「As a result, revenue from the healthcare business increased 1.4% year on year to ¥538 million, and improved profitability narrowed operating loss to ¥8 million from ¥14 million in the same period of the previous year.」
The healthcare business recorded higher revenue, and improved profitability narrowed operating loss from ¥14 million to ¥8 million. - FY2024WorsenedAnnual report
「In terms of profit and loss, in addition to the burden of higher procurement and logistics costs resulting from the weaker yen, an inventory valuation loss of approximately ¥13 million was recognized for long-held inventory in accordance with internal standards.」
In addition to the weaker yen and higher logistics costs, an inventory valuation loss of approximately ¥13 million on long-held inventory was recognized, and the healthcare business's operating loss widened from ¥34 million in the previous fiscal year to ¥38 million. - FY2024-Q3MitigatedAnnual report
「In terms of profit and loss, although the manufacturing subsidiary was struggling with higher costs, gross margin improved in sales as some of the higher costs were passed on to selling prices. As a result, revenue from the healthcare business increased 11.3% year on year to ¥900 million, while operating loss improved to ¥12 million from ¥24 million in the same period of the previous year.」
Although the manufacturing subsidiary continued to face high costs, passing some of them on to selling prices improved gross margin and narrowed operating loss from ¥24 million to ¥12 million. - FY2024-Q2MitigatedAnnual report
「In addition, the effect of improved profitability narrowed the healthcare business's operating loss. As a result, revenue was ¥531 million, up 8.4% year on year, while operating loss was ¥14 million, compared with an operating loss of ¥26 million in the same period of the previous year, representing a year-on-year improvement in operating loss.」
Improved profitability narrowed the healthcare business's operating loss from ¥26 million to ¥14 million, reducing the impact of the previous deterioration in profitability caused by higher raw material costs and selling, general and administrative expenses. - FY2024-Q1MitigatedAnnual report
「In addition, the effect of improved profitability narrowed the healthcare business's operating loss. As a result, revenue was ¥242 million, up 15.7% year on year, while operating loss was ¥2 million, compared with an operating loss of ¥21 million in the same period of the previous year, representing a year-on-year improvement in operating profit and loss.」
Improved profitability in the healthcare business narrowed operating loss from ¥21 million in the same period of the previous year to ¥2 million, reducing the impact of the previous deterioration in costs and profitability. - FY2023WorsenedAnnual report
「As a result, revenue from the healthcare business was ¥1,098 million, down 11.9% from the previous fiscal year, while operating loss was ¥34 million, compared with an operating loss of ¥10 million in the previous fiscal year.」
The healthcare business recorded an 11.9% decline in revenue, and operating loss widened from ¥10 million to ¥34 million. The increase in wool raw material costs due to the weaker yen and lower orders had an impact. - FY2023-Q3WorsenedAnnual report
「In the general bedding division, higher wool raw material costs resulting from the weaker yen could not be sufficiently passed on to selling prices, putting pressure on both revenue and profit.」
The higher cost of wool raw materials resulting from the weaker yen could not be sufficiently passed on to selling prices, and the pressure on both revenue and profit was reflected in the results. - FY2022MitigatedAnnual report
「As a result, revenue from the healthcare business remained broadly in line with the previous fiscal year at ¥1,247 million, compared with ¥1,252 million in the previous fiscal year, but operating loss narrowed to ¥10 million from ¥26 million due to improved profitability.」
Improved profitability in the healthcare business narrowed operating loss from ¥26 million to ¥10 million, reducing the impact of the previous deterioration in profitability. - FY2021WorsenedAnnual report
「As a result, revenue from the healthcare business was ¥1,252 million, down 10.5% from the previous fiscal year, while operating loss was ¥26 million, compared with operating profit of ¥12 million in the previous fiscal year.」
Although the healthcare business recorded operating profit in the previous fiscal year following the acquisition, it turned to an operating loss of ¥26 million in the current fiscal year due to sluggish face-to-face sales and lower orders. - FY2021-Q3WorsenedAnnual report
「As a result, revenue from the healthcare business was ¥925 million, down 13.1% year on year, while operating loss was ¥21 million, compared with operating profit of ¥13 million in the same period of the previous year.」
The healthcare business recorded a 13.1% year-on-year decline in revenue and turned from operating profit of ¥13 million in the same period of the previous year to an operating loss of ¥21 million. - FY2021-Q2WorsenedAnnual report
「As a result, revenue from the healthcare business was ¥533 million, down 18.1% year on year, while operating loss was ¥33 million, compared with operating profit of ¥1 million in the same period of the previous year.」
Sluggish face-to-face sales, lower orders from business partners and deteriorating profitability caused the healthcare business to turn from operating profit in the same period of the previous year to an operating loss of ¥33 million. - FY2021-Q1WorsenedAnnual report
「In the healthcare business, the health business division's revenue exceeded that of the same period of the previous year as a result of focusing on sales of masks as a COVID-19 countermeasure and medical-related products such as antibacterial materials. In the general bedding division, revenue fell below that of the same period of the previous year due to a decline in orders from business partners that had suspended sales activities and other factors. In terms of profit and loss, the decline in revenue and gross margin in the general bedding division had a negative impact, and results fell below those of the same period of the previous year. As a result, revenue from the healthcare business was ¥302 million, up 5.2% year on year, while operating loss was ¥8 million, compared with an operating loss of ¥1 million in the same period of the previous year.」
While sales of masks and antibacterial materials increased revenue in the health business division, lower orders and a decline in gross margin in the general bedding division widened the healthcare business's operating loss from ¥1 million to ¥8 million. - FY2020MitigatedAnnual report
「As a result, revenue from the healthcare business was ¥1,399 million, up 68.1% from the previous fiscal year, while operating profit was ¥12 million, compared with an operating loss of ¥29 million in the previous fiscal year, marking the first full-year profit in 5 fiscal years.」
The effect of the business acquisition and improved gross margin enabled the healthcare business to turn from an operating loss of ¥29 million in the previous fiscal year to operating profit of ¥12 million, reducing the impact of its previous deterioration in profitability. - FY2020-Q3MitigatedAnnual report
「In terms of profit and loss, results improved year on year as the Wada Satoshi Company business, which was acquired, performed steadily in addition to the effect of higher revenue.」
The acquired business's steady performance and the effect of higher revenue reduced the impact of the healthcare business's previous deterioration in profitability, and it returned to operating profitability. - FY2020-Q2MitigatedAnnual report
「In terms of profit and loss, profit increased year on year as the acquired business's strong profitability improved the profitability of the healthcare business as a whole, in addition to the effect of higher revenue.」
Improved profitability from the acquired business's strong margins reduced the impact of the previously reported deterioration in profitability caused by raw material costs and other factors. - FY2020-Q1MitigatedAnnual report
「In terms of profit and loss, in addition to the effect of higher revenue, the acquired business's strong profitability improved the profitability of the healthcare business as a whole, resulting in a year-on-year improvement in the loss. As a result, revenue from the healthcare business was ¥288 million, up 70.8% year on year, while operating loss was ¥1 million, compared with an operating loss of ¥11 million in the same period of the previous year.」
Improved profitability from the acquired business's strong margins narrowed the healthcare business's operating loss from ¥11 million to ¥1 million in the same period of the previous year. - FY2019MitigatedAnnual report
「In terms of profit and loss, results improved from the previous fiscal year due to the effect of higher revenue and improved profitability. As a result, revenue from the healthcare business was ¥832 million, up 10.9% from the previous fiscal year, while operating loss was ¥29 million, compared with an operating loss of ¥51 million in the previous fiscal year.」
Higher revenue and improved profitability in the healthcare business narrowed operating loss from ¥51 million to ¥29 million, reducing the impact of profitability risks caused by persistently high raw material costs and other factors compared with the previous fiscal year. - FY2019-Q2MitigatedAnnual report
「As a result, revenue from the healthcare business was ¥361 million, up 3.5% year on year, while operating loss was ¥13 million, compared with an operating loss of ¥25 million in the same period of the previous year.」
Improved profitability resulting from a focus on planning, manufacturing and sales of health business-related products narrowed operating loss from ¥25 million to ¥13 million. - FY2019-Q1MitigatedAnnual report
「As a result, revenue from the healthcare business declined to ¥168 million, down 16.7% year on year, but operating loss improved to ¥11 million from ¥13 million in the same period of the previous year.」
Although the healthcare business recorded lower revenue, operating loss narrowed from ¥13 million to ¥11 million due to improved profitability. - FY2018WorsenedAnnual report
「As a result, revenue from the healthcare business was ¥750 million, down 9.4% from the previous fiscal year. Although selling, general and administrative expenses declined, the decline in gross margin caused by persistently high raw material costs and other factors had an impact, and operating loss was ¥51 million, compared with an operating loss of ¥37 million in the previous fiscal year.」
Profitability continued to deteriorate due to persistently high raw material costs and other factors, and operating loss widened from ¥37 million to ¥51 million. - FY2018-Q3WorsenedAnnual report
「In addition, persistently high raw material costs caused operating profit and loss in the healthcare business to fall below the level of the same period of the previous year. As a result, revenue was ¥576 million, down 9.8% year on year, while operating loss was ¥28 million, compared with an operating loss of ¥22 million in the same period of the previous year.」
Persistently high raw material costs continued, revenue fell 9.8%, and operating loss widened from ¥22 million to ¥28 million. - FY2018-Q2WorsenedAnnual report
「As a result, revenue from the healthcare business was ¥349 million, down 12.4% year on year, while operating loss was ¥25 million, compared with an operating loss of ¥20 million in the same period of the previous year.」
The healthcare business recorded lower revenue, and operating loss widened from ¥20 million to ¥25 million, partly due to persistently high raw material costs. - FY2017WorsenedAnnual report
「As a result, revenue from the healthcare business was ¥828 million, down 2.0% from the previous fiscal year, while operating loss was ¥37 million, compared with an operating loss of ¥10 million in the previous fiscal year, due in part to the decline in gross margin caused by persistently high raw material costs and higher labor costs.」
The disclosure cited higher labor costs in addition to persistently high raw material costs, and operating loss widened from ¥10 million to ¥37 million. - FY2017-Q3WorsenedAnnual report
「As a result, revenue from the healthcare business was ¥639 million, down 4.4% year on year, while operating loss was ¥22 million, compared with an operating loss of ¥4 million in the same period of the previous year, due to the decline in gross margin caused by persistently high raw material costs and higher selling, general and administrative expenses.」
The healthcare business recorded lower revenue, and operating loss widened from ¥4 million to ¥22 million due to persistently high raw material costs and higher selling, general and administrative expenses. - FY2017-Q2WorsenedAnnual report
「As a result, revenue from the healthcare business increased to ¥399 million, up 2.8% year on year, but operating loss was ¥20 million, compared with an operating loss of ¥11 million in the same period of the previous year, due to the impact of persistently high raw material costs and higher selling, general and administrative expenses.」
Although revenue increased, operating loss widened from ¥11 million to ¥20 million due to persistently high raw material costs and higher selling, general and administrative expenses. - FY2017-Q1First statedAnnual report
「Revenue from the healthcare business was ¥217 million, up 6.7% year on year, while operating loss was ¥4 million, compared with operating profit of ¥1 million in the same period of the previous year, due in part to persistently high raw material costs and higher selling, general and administrative expenses.」
Although revenue increased, the healthcare business posted an operating loss due to persistently high raw material costs and higher selling, general and administrative expenses.