Raising the ordinary profit margin on sales to the 10% range
First written in FY2017. 1 of 24 entries say "Softened", first in FY2018. Latest entry: FY2025.
The whole theme swung hardest in 2018: 5 of 50 companies on the "Worse" side.
5 other companies' latest entry also says "Dropped".
- FY2025DroppedAnnual report
「In the third medium-term management plan disclosed on 11 July 2024, the Company did not set specific target values for its management metrics.」
The third medium-term management plan states that no specific management metric targets will be set for the previous 10% revenue ordinary profit margin target, eliminating the explicit 10% target. The ordinary profit margin for the period was approximately 6.2%, based on revenue of ¥8,185.690 million and ordinary profit of ¥507.484 million. - FY2025-H1Interim profit margin improved but the 10% target was missedAnnual report
「As a result, revenue for the interim accounting period was ¥4,017.699 million, up 25.5% year on year. Due to the increase in revenue, operating profit was ¥183.694 million, up 116.0%, and ordinary profit was ¥182.129 million, up 114.0%. Interim net profit was ¥121.373 million, up 105.0%.」
The interim ordinary profit margin was approximately 4.5%, improving from approximately 2.7% in the same period of the previous year. However, it remained below the previous 10% target level for the revenue ordinary profit margin. - FY2024Full-year profit margin declined and target was missedAnnual report
「In addition to the decline in revenue, selling, general and administrative expenses, including system-related costs, increased. Operating profit was ¥311.889 million, down 43.2%, ordinary profit was ¥309.394 million, down 43.5%, and net profit for the period was ¥212.890 million, down 43.5%.」
The revenue ordinary profit margin calculated from revenue of ¥7,263.972 million and ordinary profit of ¥309.394 million was approximately 4.3%, below the 10% target. - FY2024-Q3Continued decline in cumulative third-quarter profit marginAnnual report
「As a result, revenue for the cumulative third quarter was ¥4,910.953 million, down 6.8% year on year. In addition to the decline in revenue, selling, general and administrative expenses exceeded those in the same quarter of the previous year due partly to higher system-related costs and other factors, resulting in ordinary profit of ¥121.903 million, down 63.4%.」
The revenue ordinary profit margin for the cumulative third quarter was approximately 2.5%, down from approximately 6.3% in the same quarter of the previous year. It remained substantially below the 10% target. - FY2024-Q2Sharp decline in cumulative second-quarter profit marginAnnual report
「In addition to the decline in revenue, selling, general and administrative expenses exceeded those in the same quarter of the previous year. Operating profit was ¥85.047 million, down 72.9%, ordinary profit was ¥85.101 million, down 72.8%, and quarterly net profit was ¥59.211 million, down 72.9%.」
The revenue ordinary profit margin for the cumulative second quarter was approximately 2.7%, substantially below the 10% target. The decline in revenue and increase in selling, general and administrative expenses resulted in lower profit margins and profit. - FY2024-Q1Cumulative first-quarter profit margin declined and target was missedAnnual report
「As a result, revenue for the cumulative first quarter was ¥1,569.789 million, down 12.5% year on year. In addition, mainly due to the decline in revenue, operating profit was ¥35.505 million, down 66.7%, ordinary profit was ¥34.574 million, down 67.5%, and quarterly net profit was ¥26.013 million, down 66.4%.」
The revenue ordinary profit margin for the cumulative first quarter was approximately 2.2%, down from approximately 5.9% in the same quarter of the previous year. It remained well below the previous 10% revenue ordinary profit margin target. - FY2023Full-year profit margin declined and the 10% target was missedAnnual report
「In the second medium-term management plan disclosed on 12 April 2021, the Company set a 10% target for its revenue ordinary profit margin as its most important management metric. To achieve this target, the Company has implemented various initiatives, including improving its operating systems, with the aim of increasing its revenue ordinary profit margin and inventory turnover ratio.」
The revenue ordinary profit margin was approximately 7.1%, based on ordinary profit of ¥547.694 million and revenue of ¥7,673.114 million, down from approximately 7.6% in the previous fiscal year and below the 10% target. - FY2023-Q3Cumulative third-quarter profit margin declined and target was missedAnnual report
「As a result, revenue for the cumulative third quarter was ¥5,269.178 million, up 1.3% year on year. In addition to the increase in revenue, selling, general and administrative expenses were lower than in the same quarter of the previous year due partly to a decrease in real estate acquisition tax. Operating profit was ¥334.694 million, up 5.2%, ordinary profit was ¥333.481 million, up 5.0%, and quarterly net profit was ¥231.714 million, up 6.2%.」
Revenue and profit increased for the cumulative third quarter, but the revenue ordinary profit margin calculated from the disclosed figures was approximately 6.3%, below the 10% target. - FY2023-Q2Cumulative profit margin improved but the 10% target was missedAnnual report
「As a result, revenue for the cumulative second quarter was ¥3,900.394 million, up 1.9% year on year. In addition to the increase in revenue, selling, general and administrative expenses were lower than in the same quarter of the previous year due partly to a decrease in real estate acquisition tax. Operating profit was ¥313.550 million, up 6.9%, and ordinary profit was ¥312.839 million, up 6.5%.」
The revenue ordinary profit margin was approximately 8.0%, improving from approximately 7.7% in the cumulative same quarter of the previous year, but remaining below the previous 10% target. - FY2023-Q1Quarterly profit margin declined and target was missedAnnual report
「As a result, revenue for the cumulative first quarter was ¥1,794.078 million, down 6.1% year on year. In addition, due mainly to the decline in revenue, operating profit was ¥106.615 million, down 12.2%, ordinary profit was ¥106.261 million, down 12.3%, and quarterly net profit was ¥77.479 million, down 7.5%.」
The revenue ordinary profit margin for the cumulative first quarter was approximately 5.9%, down from approximately 6.3% in the same quarter of the previous year. It remained below the 10% target level. - FY2022Full-year profit margin improved but the 10% target was missedAnnual report
「In the second medium-term management plan disclosed on 12 April 2021, the Company set a 10% target for its revenue ordinary profit margin as its most important management metric. To achieve this target, the Company has implemented various initiatives, including improving its operating systems, with the aim of increasing its revenue ordinary profit margin and inventory turnover ratio.」
The revenue ordinary profit margin for the fiscal year ended May 2022 was approximately 7.6%, based on ordinary profit of ¥567.269 million and revenue of ¥7,483.283 million, improving from approximately 7.4% in the previous fiscal year but remaining below the 10% target. - FY2022-Q3Cumulative third-quarter profit margin declined and target was missedAnnual report
「As a result, revenue for the cumulative third quarter was ¥5,201.658 million, down 8.4% year on year, while operating profit was ¥318.230 million, down 24.0%, ordinary profit was ¥317.724 million, down 23.9%, and quarterly net profit was ¥218.278 million, down 24.2%.」
The revenue ordinary profit margin for the cumulative third quarter was approximately 6.1%, down from approximately 7.7% in the previous cumulative quarter. It remained below the previous 10% target. - FY2022-Q2Cumulative profit margin improved but the 10% target was missedAnnual report
「As a result, revenue for the cumulative second quarter was ¥3,827.973 million, down 4.5% year on year. In addition, selling, general and administrative expenses exceeded those in the same quarter of the previous year due to higher personnel expenses resulting from an increase in employees and higher real estate acquisition tax, among other factors. Operating profit was ¥293.231 million, down 7.0%, ordinary profit was ¥293.786 million, down 6.6%, and quarterly net profit was ¥202.914 million, down 7.0%.」
The revenue ordinary profit margin for the cumulative second quarter was approximately 7.7%, down from approximately 7.9% in the cumulative same quarter of the previous year and below the previous 10% target. - FY2022-Q1Quarterly margins declinedAnnual report
「As a result, revenue for the cumulative first quarter was ¥1,909.660 million, up 2.9% year on year, while operating profit was ¥121.403 million, down 13.0%, ordinary profit was ¥121.109 million, down 13.2%, and quarterly net profit was ¥83.772 million, down 12.8%, mainly due to higher salaries resulting from an increase in employees.」
Revenue increased 2.9% year on year, but higher salaries resulting from the increase in employees led to lower profit. The revenue ordinary profit margin was approximately 6.3%, down from approximately 7.5% in the same quarter of the previous year and below the 10% target. - FY2021Full-year profit margin improved but the 10% target was missedAnnual report
「In the second medium-term management plan disclosed on 12 April 2021, the Company set a 10% target for its revenue ordinary profit margin as its most important management metric.」
Ordinary profit for the fiscal year ended May 2021 was ¥572.803 million and revenue was ¥7,754.089 million, resulting in a revenue ordinary profit margin of approximately 7.4%, an improvement from approximately 5.9% in the previous fiscal year, but still below the 10% target. - FY2021-Q3Cumulative third-quarter profit margin improved but target was missedAnnual report
「As a result, revenue for the cumulative third quarter was ¥5,676.102 million, up 17.2% year on year, while operating profit was ¥418.864 million, up 63.4%, ordinary profit was ¥417.782 million, up 66.7%, and quarterly net profit was ¥287.830 million, up 68.7%.」
The revenue ordinary profit margin for the cumulative third quarter was approximately 7.4%, improving from approximately 5.2% in the same quarter of the previous year, but remaining below the previous 10% target. - FY2021-Q2Cumulative profit margin improved but target was missedAnnual report
「As a result, revenue for the cumulative second quarter was ¥4,007.388 million, up 19.4% year on year, while operating profit was ¥315.398 million, up 52.5%, ordinary profit was ¥314.613 million, up 53.7%, and quarterly net profit was ¥218.129 million, up 56.0%.」
The revenue ordinary profit margin for the cumulative second quarter was approximately 7.9%, improving from approximately 6.1% in the previous cumulative quarter, but remaining below the 10% target. - FY2021-Q1Quarterly profit margin improved but target was missedAnnual report
「As a result, revenue for the cumulative first quarter was ¥1,855.129 million, up 25.8% year on year, while operating profit was ¥139.492 million, up 120.7%, ordinary profit was ¥139.446 million, up 123.5%, and quarterly net profit was ¥96.017 million, up 126.7%.」
The quarterly revenue ordinary profit margin was approximately 7.5%, improving from approximately 4.2% in the same quarter of the previous year, but remained below the 10% target. - FY2020Full-year profit margin target not achievedAnnual report
「For some time, we have regarded the ordinary profit margin on revenue as our most important management indicator and set a target of 10%」
Ordinary profit for the period was ¥407.248 million and revenue was ¥6,850.2 million, resulting in a revenue ordinary profit margin of approximately 5.9%, below the 10% target. - FY2020-Q3Lower revenue, lower profit for the cumulative third quarterAnnual report
「As a result, revenue for the cumulative third quarter was ¥4,844.278 million, down 8.7% from the same quarter of the previous year. Operating profit was ¥256.335 million, down 41.1%, ordinary profit was ¥250.607 million, down 42.3%, and net profit for the quarter was ¥170.641 million, down 43.4%.」
The cumulative third quarter resulted in lower revenue and profit, and profit amounts and margins continued to decline against the target of a 10% ordinary profit margin on revenue. - FY2020-Q2Profit margins and profit amounts continued to declineAnnual report
「As a result, revenue for the cumulative second quarter was ¥3,357.330 million, down 10.0% from the same quarter of the previous year. Operating profit was ¥206.857 million, down 40.0%, ordinary profit was ¥204.676 million, down 40.6%, and net profit for the quarter was ¥139.812 million, down 41.7%.」
The cumulative second quarter resulted in lower revenue and profit, and the ordinary profit margin was approximately 6.1%. Profit levels continued to decline against the previous target of a 10% ordinary profit margin on revenue. - FY2020-Q1Quarterly margins declinedAnnual report
「As a result, revenue for the cumulative first quarter was ¥1,474.179 million, down 17.5% from the same quarter of the previous year. Operating profit was ¥63.205 million, down 60.8%, ordinary profit was ¥62.379 million, down 61.4%, and net profit for the quarter was ¥42.350 million, down 62.5%.」
Revenue, operating profit, ordinary profit and net profit were all below the same quarter of the previous year, while the operating profit margin on revenue declined from approximately 9.0% to approximately 4.3%. - FY2018SoftenedAnnual report
「For some time, we have regarded the ordinary profit margin on revenue as our most important management indicator and set a target of 10%.」
The wording changed from the previous target of “raising it to the 10% range” to a target of “10%” this time. - FY2017First statedAnnual report
「Our ordinary profit margin on revenue was 8.8% for the fiscal year ended May 2017, and we aim to raise it to the 10% range. In our core business of buying and selling our own real estate, the purchase price per property and renovation costs are the main cost factors, and we intend to reduce these costs of sales. Selling, general and administrative expenses mainly comprise sales staff personnel expenses and advertising and promotional expenses for sales and purchases, and we will also work to reduce these expenses while assessing their effectiveness.」
The ordinary profit margin on revenue was identified as the most important management indicator, and the company stated for the first time that it aimed to raise the margin from 8.8% for the fiscal year ended May 2017 to the 10% range. Measures include reducing purchase prices, renovation costs, sales staff personnel expenses and advertising and promotional expenses.