Lower Profit Margins Due to Land Acquisition Prices and the Consolidation of ホーク・ワン
First written in FY2019. 1 of 10 entries say "Advanced", first in FY2025. Latest entry: FY2025.
The whole theme swung hardest in 2022: 12 of 16 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2025AdvancedAnnual report
「Gross profit margin improved 2.2 percentage points to 18.2% (16.0% in the previous consolidated fiscal year). This was mainly because, in the detached housing-related business, the Company had worked to replace inventory since the previous consolidated fiscal year, improving the inventory mix so that the margins anticipated at the time of sale could be achieved. As a result, gross profit margin improved 3.1 percentage points to 17.1% (14.0% in the previous consolidated fiscal year), among other factors.」
Inventory replacement undertaken in the previous fiscal year was successful, improving gross profit margin overall and in the detached housing-related business. - FY2025-H1Margin improvement through inventory replacementAnnual report
「In the detached housing-related business, gross profit margin improved significantly, supported by recovering demand for detached housing and the successful replacement of inventory undertaken in the previous consolidated fiscal year. As a result, revenue was ¥360,949 million, up 1.3% year on year, and operating profit was ¥40,960 million, up 30.7%.」
In contrast to the previously reported margin decline due to adjustments in market inventory, the Company explained that inventory replacement was successful and led to a significant improvement in gross profit margin in the detached housing-related business. - FY2024-Q2Lower margins due to adjustments in market inventoryAnnual report
「In the detached housing-related business, demand for detached housing remained high in central Tokyo and sales progressed as planned, but adjustments in market inventory affected the business, including through a decline in gross profit margin.」
Although sales in the detached housing-related business progressed as planned, adjustments in market inventory were newly identified as a factor behind the decline in gross profit margin. - FY2023Lower margins due to higher land acquisition costsAnnual report
「Gross profit margin declined 0.4 percentage points to 19.0% (19.4% in the previous consolidated fiscal year). This was mainly because, in the detached housing-related business, higher land acquisition costs caused gross profit margin to decline 1.5 percentage points to 16.7% (18.2% in the previous consolidated fiscal year), among other factors.」
Overall, revenue and profit increased, but higher land acquisition costs reduced the gross profit margin overall and the margin in the detached housing-related business. - FY2023-Q3Higher revenue and profit; continued impact of price increasesAnnual report
「In the detached-house-related business, although sales were affected by higher land and material prices compared with the cumulative third quarter of the previous consolidated fiscal year, sales remained firm due to strong demand for detached houses in central urban areas. As a result, revenue was ¥432,005 million, up 14.7% year on year, and operating profit was ¥49,080 million, up 1.0%.」
Although the impact of higher land and material prices continued, both revenue and operating profit in the detached housing-related business exceeded the previous year. The business changed from higher revenue and lower profit to higher revenue and higher profit. - FY2023-Q2Higher revenue, lower profit, and margin normalisationAnnual report
「In the detached housing-related business, selling prices rose and the operating profit margin reached a high level in the first nine months of the previous second quarter, reflecting increased housing demand due to the spread of COVID-19. In the first nine months of the current second quarter, however, land and material prices rose and the operating profit margin normalised. Demand for detached housing in central Tokyo nevertheless remained strong, and revenue increased by double digits. As a result, revenue was ¥295,777 million, up 13.4% year on year, while operating profit was ¥35,177 million, down 2.2%.」
Demand for detached housing in central Tokyo remained strong and revenue increased 13.4%, while higher land and material prices normalised the operating profit margin and operating profit declined 2.2%. - FY2023-Q1Margin normalisationAnnual report
「In the cumulative first quarter of the previous fiscal year, profit margins were high because more customers sought workspaces and other features at home as the COVID-19 pandemic spread, and selling prices rose in response to stronger demand for housing. In the cumulative first quarter of the current fiscal year, land and material prices rose against the backdrop of this stronger demand, and profit margins normalised. These fluctuations in financial results have already been incorporated into the plan.」
In the detached housing-related business, revenue increased 4.2% year on year, while the margin normalised due to higher land and material prices, and operating profit declined 24.4% year on year. - FY2022-Q3Lower margins due to surging material pricesAnnual report
「This is because demand for homes with workspaces and other features has remained firm under the new lifestyle that spread in response to the COVID-19 pandemic, and sales have remained steady, while profit margins declined compared with the cumulative third quarter of the previous fiscal year because costs rose from the second quarter of the consolidated fiscal year due in part to the impact of surging material prices.」
In the detached housing-related business, revenue increased 7.4% year on year, while operating profit declined 2.3% year on year due to higher costs resulting from surging material prices, among other factors. The factors behind the lower margin expanded to include surging material prices in addition to the previously cited land acquisition prices and market deterioration. - FY2020Margin declineAnnual report
「Gross profit margin declined 0.2 percentage points to 16.4% (16.6% in the previous consolidated fiscal year). This was mainly because, in the income-producing real estate business, rents had declined and conditions in the buying and selling market had deteriorated amid the spread of COVID-19, while financial institutions were expected to become more selective in screening investors and properties, resulting in the delivery of properties with lower gross profit margins, among other factors.」
Gross profit margin declined from 16.6% to 16.4%. The Company attributed the decline to the delivery of properties with lower margins amid concerns about deterioration in the income-producing real estate market. - FY2019First statedAnnual report
「Gross profit margin declined 1.4 percentage points to 16.6% (18.0% in the previous consolidated fiscal year). This was mainly due to an increase in the cost ratio resulting from land acquisition prices temporarily reaching high levels relative to selling prices in the detached housing-related business, as well as the gross profit margin of ホーク・ワン, which became a consolidated subsidiary at the end of the previous consolidated fiscal year, being lower than the existing gross profit margin. However, the gross profit margin in the second half improved steadily, rising 1.2 percentage points from the first half to 16.0%.」
The decline in gross profit margin from 18.0% in the previous fiscal year to 16.6% was attributed to higher land acquisition prices in the detached housing-related business and the margin level of ホーク・ワン. Meanwhile, the margin improved to 16.0% in the second half.