Increase in indirect costs of the overseas consulting business due to the postponement of new orders
First written in FY2019-Q1. 2 of 4 entries say "Materialised", first in FY2024-Q3. Latest entry: FY2024.
S E moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
2 other companies' latest entry also says "Materialised".
- FY2024MaterialisedAnnual report
「During the fiscal year, revenue and profit declined because the number of projects won and completed during the year from the Japan International Cooperation Agency (JICA) decreased, while outsourcing costs related to design costs and selling, general and administrative expenses increased. As a result, revenue from this business was ¥746 million (down 3.8% year on year), while the operating loss was ¥18 million (compared with operating profit of ¥33 million in the previous fiscal year).」
In the overseas consulting business, the increase in outsourcing and SG&A expenses related to design costs actually occurred, resulting in a shift from operating profit to an operating loss. - FY2024-Q3MaterialisedAnnual report
「During the nine months ended December 31, revenue increased because progress on large projects already won was substantial, but profit declined because outsourcing costs related to design costs and selling, general and administrative expenses increased. As a result, revenue from this business was ¥587 million (up 10.2% year on year), while the business posted an operating loss of ¥5 million (compared with operating profit of ¥23 million in the same period of the previous year).」
In the overseas consulting business, the increase in outsourcing and SG&A expenses related to design costs actually occurred, and operating profit turned from ¥23 million in the same period of the previous year to a ¥5 million loss. - FY2019DroppedAnnual reportThe increase in indirect costs in the overseas consulting business due to deferred new orders, which was reported in the previous quarter, is not explicitly mentioned in the current fiscal year's performance explanation.
- FY2019-Q1First statedAnnual report
「As a result, sales in this business were ¥114 million, up 84.3% year on year. On the profit front, a temporary increase in indirect costs due to deferred new orders resulted in an operating loss of ¥26 million, compared with an operating loss of ¥10 million in the same period of the previous fiscal year.」
Deferred new orders led to a temporary increase in indirect costs, which was reflected in actual results as an operating loss of ¥26 million.