Deteriorating Earnings Due to Intensifying Competition and Insufficient Advertising Effectiveness
First written in FY2017-Q1. 2 of 11 entries say "Restated". Latest entry: FY2019-Q3.
The whole theme swung hardest in 2018: 5 of 18 companies on the "Worse" side.
27 other companies' latest entry also says "Restated".
- FY2019-Q3RestatedAnnual report
「In the water business, which is primarily engaged in the sale of hydrogen water, we restrained advertising-related expenses and focused on securing recurring customers amid the impact of negative reporting on hydrogen water in general. As a result, revenue was ¥237.607 million, down 42.9% year on year, and operating income was ¥42.796 million, compared with an operating loss of ¥337 thousand in the same period of the previous year.」
Although the impact of negative reporting and lower revenue continued to be reported, the company posted operating income through measures including reductions in advertising-related expenses. - FY2019-Q2Revenue continued to decline, but operating income was recorded through measures including advertising expense reductionsAnnual report
「In the water business, which is primarily engaged in the sale of hydrogen water, we restrained advertising-related expenses and focused on securing recurring customers amid the impact of negative reporting on hydrogen water in general. As a result, revenue was ¥170.037 million, down 43.3% year on year, and operating income was ¥40.847 million, compared with an operating loss of ¥5.150 million in the same period of the previous year.」
The impact of negative reporting and a substantial decline in revenue continued, while the company moved from an operating loss in the same period of the previous year to operating income through measures including reductions in advertising-related expenses. - FY2019-Q1Operating income recorded despite restraining advertising and promotional expensesAnnual report
「Amid the impact of negative reporting on hydrogen water in general, we restrained advertising-related expenses and focused on securing recurring customers. As a result, revenue was ¥87.899 million, down 51.0% year on year, and operating income was ¥30.106 million, up 638.8% year on year.」
The impact of negative reporting continued to be cited, but the company posted operating income while restraining advertising-related expenses. - FY2018Recurring customers continued not to increase and the operating loss continued, but the loss narrowedAnnual report
「As a result, revenue was ¥518.035 million, down 55.0% year on year, and the company posted an operating loss of ¥27.008 million, compared with an operating loss of ¥85.528 million in the same period of the previous year.」
Negative reporting on hydrogen water in general and the lack of growth in recurring customers were cited. Revenue declined and the operating loss continued, but the operating loss narrowed from the same period of the previous year. - FY2018-Q3Recurring customers continued not to increase, but the operating loss narrowedAnnual report
「In the water business, which is primarily engaged in the sale of hydrogen water, we changed our advertising strategy from the previous consolidated fiscal year and sought more effective advertising methods. However, partly due to the impact of negative reporting on hydrogen water in general, we were unable to increase the number of recurring customers.」
Although the lack of growth in recurring customers and the impact of negative reporting continued, the operating loss narrowed from ¥110.805 million in the same period of the previous year to ¥337 thousand. - FY2018-Q2Recurring customers failed to increase and the operating loss continuedAnnual report
「In the water business, which is primarily engaged in the sale of hydrogen water, we changed our advertising strategy from the previous consolidated fiscal year and sought more effective advertising methods. However, partly due to the impact of negative reporting on hydrogen water in general, we were unable to increase the number of recurring customers.」
The lack of growth in recurring customers and the impact of negative reporting continued after the advertising strategy was changed, and an operating loss of ¥5.150 million was recorded for the cumulative second quarter. - FY2018-Q1Operating profitability coexisted with no increase in recurring customersAnnual report
「In the water business, which is primarily engaged in the sale of hydrogen water, we changed our advertising strategy from the previous consolidated fiscal year and sought more effective advertising methods. However, partly due to the impact of negative reporting on hydrogen water in general, we were unable to increase the number of recurring customers. As a result, revenue was ¥179.321 million, down 57.2% year on year, and operating income was ¥4.075 million, compared with an operating loss of ¥158.740 million in the same period of the previous year.」
The number of recurring customers did not increase even after the advertising strategy was changed, and the impact of negative reporting on hydrogen water in general was cited. Meanwhile, business earnings changed from an operating loss in the same period of the previous year to operating income. - FY2017MitigatedAnnual report
「During the first quarter of the current consolidated accounting period, we actively invested in advertising and promotional expenses as an upfront investment to secure recurring customers and substantially expand and develop the business as one of our Group's profitable businesses going forward. However, as competition intensified with the entry of more companies, revenue stagnated and earnings deteriorated significantly, partly because we were unable to conduct effective advertising and promotional activities, resulting in an operating loss of ¥158.740 million. In response, we substantially reviewed our advertising strategy and other measures from the second quarter of the current consolidated accounting period onward, resulting in operating income of ¥73.212 million, but this was insufficient to absorb the operating loss recorded in the first quarter.」
The company posted operating income from the second quarter onward after reviewing its advertising strategy, but was unable to absorb the first-quarter loss for the full year, and the water business posted an operating loss. - FY2017-Q3MitigatedAnnual report
「During the first quarter of the current consolidated accounting period, we actively invested in advertising and promotional expenses as an upfront investment to secure recurring customers and substantially expand and develop the business as one of our Group's profitable businesses going forward. However, as competition intensified with the entry of more companies, revenue stagnated and earnings deteriorated significantly, partly because we were unable to conduct effective advertising and promotional activities, resulting in an operating loss of ¥158.740 million. In response, we substantially reviewed our advertising strategy and other measures during the second and third quarters of the current consolidated accounting period, resulting in operating income of ¥47.935 million.」
The company reported losses caused by intensifying competition and ineffective advertising in the first quarter, while posting operating income in the second and third quarters after reviewing its advertising strategy. - FY2017-Q2RestatedAnnual report
「As competition intensified with the entry of more companies, revenue stagnated and earnings deteriorated significantly, partly because we were unable to conduct effective advertising and promotional activities. The company recorded an operating loss of ¥158.740 million.」
The deterioration in earnings caused by intensifying competition and ineffective advertising was reconfirmed as a first-quarter event. - FY2017-Q1MaterialisedAnnual report
「As competition intensified with the entry of more companies, revenue stagnated and earnings deteriorated significantly, partly because we were unable to conduct effective advertising and promotional activities. As a result, revenue was ¥419.188 million, down 23.1% year on year, and the company posted an operating loss of ¥158.740 million, compared with operating income of ¥31.259 million in the same period of the previous year.」
The disclosure attributes the decline in revenue and operating loss to intensifying competition and ineffective advertising and promotion.