Burden of upfront investment in the sales workforce and Myanmar base
First written in FY2016-Q3. 8 of 16 entries say "Mitigated", first in FY2017-Q1. Latest entry: FY2022-Q2.
The whole theme swung hardest in 2022: 2 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2022-Q2MitigatedAnnual report
「Meanwhile, the earnings of SLW Co., which became a consolidated subsidiary during the period, remained strong and boosted segment earnings. As a result, revenue was ¥1,673 million, 2.8 times the level in the same period of the previous year, and segment profit was ¥120 million, compared with a loss of ¥59 million in the same period of the previous year.」
The overseas solutions business returned to segment profit of ¥120 million from a loss of ¥59 million in the same period of the previous year, partly due to the earnings contribution from making SLW Co. a consolidated subsidiary. - FY2021MitigatedAnnual report
「Segment results were a loss of ¥66 million, compared with a loss of ¥259 million in the same period of the previous year, due to a substantial decline in revenue following business restructuring and the recognition of impairment losses and other factors, but the loss narrowed substantially.」
The overseas solutions business continued to post lower revenue and losses, but the segment loss narrowed from ¥259 million to ¥66 million through business restructuring and other measures. - FY2021-Q3MitigatedAnnual report
「As a result, revenue was ¥822 million, down 38.1% year on year. Segment results were a loss of ¥92 million, compared with a loss of ¥284 million in the same period of the previous year, but the deficit narrowed as a result of efforts to improve the sales margin and reduce expenses.」
Although substantial revenue declines continued in the overseas subsidiaries business, the loss narrowed from ¥284 million to ¥92 million through an improved sales margin and expense reductions. - FY2021-Q2MitigatedAnnual report
「In the overseas subsidiaries business, the Company consolidated and reorganised its operations in the countries where it operates to build a stronger sales organisation, and worked to sell existing products such as LEDs and virus sterilisation equipment. It also recruited local sales employees and pursued sales to local companies. In addition, the spread of COVID-19 led to business suspensions resulting from activity restriction orders, while business managers were unable to take up their posts. As a result, revenue was ¥470 million, down 52.2% year on year. Segment results were a loss of ¥93 million, compared with a loss of ¥170 million in the same period of the previous year, but the deficit narrowed as a result of efforts to improve profit margins and reduce expenses.」
Although business suspensions and other effects caused by infectious diseases continued, the loss in the overseas subsidiaries business narrowed from ¥170 million to ¥93 million through improved profit margins and expense reductions. - FY2020WorsenedAnnual report
「The overseas subsidiaries business posted a loss of ¥380 million, compared with profit of ¥235 million in the same period of the previous year, as revenue declined despite an increase in the number of bases and fixed costs and goodwill amortisation charges also increased.」
Fixed costs and goodwill amortisation charges associated with expanding overseas bases became apparent amid declining revenue, causing segment results to deteriorate from profit to a loss of ¥380 million. - FY2020-Q1WorsenedAnnual report
「The Company incurred upfront investment to expand its overseas business, including establishing a global headquarters, strengthening its sales support and administrative structure, recruiting local sales employees to begin selling to local customers, and recruiting management personnel and conducting marketing to launch a new business in China. As a result, it posted an operating loss of ¥182 million, compared with an operating loss of ¥9 million in the same period of the previous year.」
Upfront investment in establishing a global headquarters, recruiting local sales employees and executives for the China business, and marketing a new business was incurred and became a factor behind the increase in the consolidated operating loss. - FY2019-Q3WorsenedAnnual report
「Operating profit was ¥266 million, down 1.0% year on year, despite upfront investment in India and Taiwan in the overseas subsidiaries business.」
Upfront investment associated with expanding into India and Taiwan continued in the overseas subsidiaries business and was described as a factor behind the decline in consolidated operating profit. - FY2019-Q2MitigatedAnnual report
「Segment profit was ¥82 million, up 21.7% year on year, after absorbing one-time costs associated with launching RECOMM Business Solutions India and other expenses.」
Although one-time costs associated with launching the Indian subsidiary and other initiatives remained, the overseas subsidiaries business absorbed the costs and posted segment profit. - FY2019-Q1WorsenedAnnual report
「Although operating results benefited from substantial revenue growth, upfront investment in launching the India and solar power generation systems businesses in the overseas subsidiaries business resulted in an operating loss of ¥9 million, compared with an operating loss of ¥13 million in the same period of the previous year.」
Upfront investment associated with launching the India and solar power generation systems businesses was incurred and became a factor behind the consolidated operating loss. - FY2018-Q3MitigatedAnnual report
「Segment profit increased substantially to ¥97 million, up 151.1% year on year, as the effect of higher revenue absorbed the upfront investment costs associated with strengthening the workforce and opening a base in Malaysia.」
The effect of higher revenue absorbed the upfront investment costs associated with strengthening the workforce and opening the Malaysia base, increasing profit in the overseas subsidiaries business to ¥97 million. - FY2018-Q1WorsenedAnnual report
「Operating profit was a loss of ¥13 million, compared with profit of ¥17 million in the same quarter of the previous year, due to higher personnel and other costs resulting from active workforce expansion at each business division, as well as one-time costs associated with relocating the head office.」
Higher personnel and other costs associated with workforce expansion at each business division emerged as a factor behind the operating loss this quarter. - FY2017MitigatedAnnual report
「Segment profit increased to ¥81 million, 4.0 times the level in the same period of the previous year, as the effect of higher revenue and efforts to improve operational efficiency absorbed the costs of opening in Vietnam.」
In the overseas subsidiaries business, newly incurred costs for opening in Vietnam were absorbed by the effect of higher revenue and other factors, and profit increased. - FY2017-Q3RestatedAnnual report
「As a result, revenue was ¥294 million, up 658.7% year on year, and segment profit was ¥38 million, as the upfront investment costs associated with strengthening the workforce and opening branches were absorbed, compared with profit of ¥1 million in the same period of the previous year.」
In the overseas subsidiaries business, the effect of higher revenue continued to absorb the upfront investment costs associated with strengthening the workforce and opening branches. - FY2017-Q2RestatedAnnual report
「As a result, revenue was ¥178 million, up 554.1% year on year, and segment profit was ¥20 million, as the upfront investment costs associated with strengthening the workforce and opening branches were absorbed, compared with a loss of ¥6 million in the same period of the previous year, resulting in a return to profitability.」
In the overseas subsidiaries business, the effect of higher revenue continued to absorb the upfront investment costs associated with strengthening the workforce and opening branches. - FY2017-Q1MitigatedAnnual report
「In the overseas subsidiaries business, substantial revenue growth absorbed the upfront investment costs of opening branches and increasing staff, enabling the business to expand earnings to ¥17 million (a loss of ¥32 million in the same quarter of the previous year).」
In the overseas subsidiaries business, upfront investment costs associated with opening branches and increasing staff were absorbed by substantial revenue growth, and the business posted a profit. - FY2016-Q3First statedAnnual report
「The Company posted a loss of ¥32 million, as it did not fully offset the upfront investment costs for increasing the number of sales employees (a loss of ¥121 million in the same quarter of the previous year).」
Upfront investment costs associated with increasing staff in the sales force and at the Myanmar center emerged as factors behind the loss for the period.