Profit Downside from a Higher Outsourcing Ratio in Web Production
First written in FY2018. 4 of 5 entries say "Mitigated", first in FY2019-Q1. Latest entry: FY2020.
The whole theme swung hardest in 2019: 3 of 8 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2020MitigatedAnnual report
「This was because gross profit increased as the number of units sold of mainly highly profitable products grew and profitability in the Web business improved.」
Regarding the longstanding profitability issues in Web production and Web sales, the company again describes improved profitability in the Web business. - FY2019MitigatedAnnual report
「On the profit front, in addition to increased sales of highly profitable information security products, profitability improved in the Web business as the company worked to improve its earnings structure.」
Regarding the longstanding cost and outsourcing issues in Web production and Web sales, the company describes improvements in its earnings structure and profitability. - FY2019-Q2MitigatedAnnual report
「In Web sales, efforts to correct the in-house versus outsourced production ratio as part of the cost-control issues identified in the previous fiscal year showed signs of improvement, while the expansion of new sales channels also progressed steadily.」
In response to the higher outsourcing ratio and profit shortfall in the Web production division in the previous fiscal year, the company states that efforts to correct the in-house versus outsourced production ratio showed signs of improvement. - FY2019-Q1MitigatedAnnual report
「In Web sales, performance remained strong as the company worked to improve cost controls in the Web production division, where cost-related issues had remained from the previous fiscal year.」
The company states that it addressed the Web production division's cost issues, which had manifested in the previous fiscal year as a higher outsourcing ratio and failure to meet profit targets, by improving cost controls, resulting in strong Web sales. - FY2018MaterialisedAnnual report
「The increase in the outsourcing ratio, as the company was unable to keep pace with the increase in Web production orders compared with the previous fiscal year, raised the cost of sales, causing each profit measure from gross profit downward to fall below plan.」
The company states that it was unable to handle the increase in Web production projects, resulting in higher outsourcing and cost-of-sales ratios and causing each profit measure to fall below plan.