Pre-opening funding burden and losses in the hot-bathing business
First written in FY2016. 12 of 21 entries say "Mitigated", first in FY2018-Q2. Latest entry: FY2025.
The whole theme swung hardest in 2023: 6 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「At the “Thermae-Yu Nishiazabu” store, initial investment costs for the new opening were recorded in cost of sales in the same period of the previous year, but no such costs were incurred in the current consolidated fiscal year.」
Initial investment costs associated with opening the Nishiazabu store were not incurred in the current fiscal year, mitigating the factor that had reduced profit due to the burden of opening preparation costs. - FY2025-H1MitigatedAnnual report
「Initial investment costs for a new opening were recorded in cost of sales in the same period of the previous year, but no such costs were incurred during the current interim consolidated accounting period.」
Initial investment costs associated with opening the Nishiazabu store were recorded in the same period of the previous year but were not incurred during the current interim consolidated accounting period, mitigating the factor that had reduced profit in the bathing facilities business. - FY2024-Q2MaterialisedAnnual report
「Although the Nishiazabu store started operations at a loss because initial opening investment costs were recorded and customer spending was lower than expected, strong performance at the Shinjuku store resulted in substantial increases in both revenue and profit for the bathing facilities business as a whole.」
At the Nishiazabu store, the recording of initial investment costs and customer spending below expectations resulted in losses after opening. - FY2024-Q1MaterialisedAnnual report
「However, because initial investment costs associated with opening the “Thermae-Yu Nishiazabu” store were recorded, they reduced profit for the bathing facilities business as a whole.」
Initial investment costs associated with opening the Nishiazabu store were recorded, becoming a factor that reduced profit for the bathing facilities business as a whole. - FY2023MaterialisedAnnual report
「Visitor numbers had struggled to grow since the opening. After reviewing the group synergies available from the bathing facilities business, we determined that it would take some time for those benefits to materialize and that improving short-term profitability would be difficult. Accordingly, in February 2023, we transferred all shares in 株式会社ハッピーリゾート held by the Company and removed it from our consolidated subsidiaries.」
Visitor numbers at the Namerikawa store struggled to grow, making short-term improvement in profitability difficult in practice, and the Company ultimately exited through a share transfer. - FY2023-Q3MaterialisedAnnual report
「The number of visitors to the bathing facilities struggled to grow, resulting in a loss at the Namerikawa store, which combines both facilities, at the start of operations. In addition, the recording of initial investment costs for the Namerikawa store reduced profit for the bathing facilities business as a whole.」
Visitor numbers at the Namerikawa store struggled to grow, and the facility as a whole started operations at a loss. Initial investment costs also reduced profit for the bathing facilities business as a whole. - FY2023-Q2MaterialisedAnnual report
「However, the bathing facilities business as a whole became a factor reducing profit because initial investment costs for the Namerikawa store were recorded.」
Initial investment costs associated with opening the Namerikawa store were recorded, becoming a factor that reduced profit for the bathing facilities business as a whole. - FY2022MitigatedAnnual report
「Revenue from this business was ¥687.448 million, up 54.9% from the previous consolidated fiscal year, and operating profit was ¥5.124 million, compared with an operating loss of ¥166.625 million in the previous consolidated fiscal year.」
The bathing facilities business swung from an operating loss in the previous fiscal year to an operating profit, mitigating the performance risk associated with post-opening losses. However, an extraordinary loss of ¥32.909 million was incurred for fixed costs related to the response to infectious diseases. - FY2022-Q3MitigatedAnnual report
「Revenue increased 43.8% year on year to ¥448.808 million, while the operating loss was ¥21.038 million, compared with an operating loss of ¥139.208 million in the same quarter of the previous year.」
The recovery in revenue from the bathing facilities business and the substantial reduction in the operating loss mitigated the deterioration in performance due to post-opening losses and fixed costs compared with the same quarter of the previous fiscal year. However, the operating loss continued. - FY2020-Q3MitigatedAnnual report
「As a result, revenue increased 11.1% year on year to ¥1,138.12 million, and operating profit increased 45.1% to ¥265.95 million.」
The bathing facilities business reported operating profit of ¥265.95 million, and the risk of weaker performance due to post-opening losses and depreciation expenses continues to be mitigated. - FY2020-Q2MitigatedAnnual report
「As a result, revenue increased 13.5% year on year to ¥754.661 million, and operating profit increased 54.6% to ¥181.122 million.」
The bathing facilities business reported operating profit of ¥181.122 million, further mitigating the risk of weaker performance due to post-opening losses and depreciation expenses during the quarter. - FY2019MitigatedAnnual report
「Revenue was ¥1,424.021 million, up 4.6% from the previous consolidated fiscal year, and operating profit was ¥274.259 million, up 59.8%.」
The bathing facilities business has continued to generate operating profit, further mitigating the risk of weaker performance due to post-opening losses and depreciation expenses. - FY2019-Q3MitigatedAnnual report
「As a result, revenue increased 2.8% year on year to ¥1,024.4 million, and operating profit increased 75.1% to ¥183.291 million.」
The bathing facilities business has continued to generate operating profit, further mitigating the performance risk associated with post-opening depreciation expenses and losses. - FY2019-Q2MitigatedAnnual report
「As a result, revenue increased 3.9% year on year to ¥665.146 million, and operating profit increased 89.0% to ¥117.163 million.」
The health spa business continued to record operating profit, further reducing the post-opening deficit burden. - FY2018MitigatedAnnual report
「Revenue was ¥1,360.826 million, up 20.7% from the previous consolidated fiscal year, and operating profit was ¥171.638 million, up 683.7%.」
The health spa business recorded operating profit, further reducing the post-opening deficit burden in terms of performance for the fiscal year. - FY2018-Q3MitigatedAnnual report
「Revenue in the business increased 26.8% year on year to ¥996.812 million, and operating profit was ¥104.678 million (an operating loss of ¥27.283 million in the same quarter of the previous year).」
The health spa business turned from an operating loss in the same quarter of the previous year to operating profit, further reducing the post-opening deficit burden. - FY2018-Q2MitigatedAnnual report
「As a result, revenue in the business increased 27.3% year on year to ¥640.274 million, and operating profit was ¥61.991 million (an operating loss of ¥38.248 million in the same quarter of the previous year).」
In the health spa business, the operating deficit recorded in the same quarter of the previous year turned into operating profit in the current quarter, reducing the impact of the deficit. - FY2017-Q3MaterialisedAnnual report
「Revenue was ¥785.957 million (¥298.237 million in the same quarter of the previous year), but the heavy depreciation burden resulted in an operating loss of ¥27.283 million (an operating loss of ¥400.921 million in the same quarter of the previous year).」
The depreciation burden and operating loss continued. The operating loss narrowed from the same quarter of the previous year. - FY2017-Q2MaterialisedAnnual report
「However, the depreciation burden was substantial. Revenue was ¥502.897 million (¥73.720 million in the same quarter of the previous year), and the operating loss was ¥38.248 million (an operating loss of ¥333.525 million in the same quarter of the previous year).」
The depreciation burden and operating loss continued into the second quarter. However, the operating loss narrowed from the same quarter of the previous year. - FY2017-Q1MaterialisedAnnual report
「Revenue was ¥230.184 million, but the depreciation burden resulted in an operating loss of ¥31.695 million.」
The health spa facility's depreciation burden and operating loss were recorded in the first quarter as well. - FY2016MaterialisedAnnual report
「The burden of pre-opening costs was substantial. As a result, revenue in the health spa business was ¥551.629 million and the operating loss was ¥457.419 million.」
The health spa business's pre-opening cost burden and operating loss are reported as results following the opening.