Profit pressure from locations that are not contributing to earnings
First written in FY2018-Q1. 7 of 17 entries say "Worsened", first in FY2019-Q4. Latest entry: FY2026.
Cross Marketing Group moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2025: 8 of 13 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Overseas revenue was ¥4,823 million, down 2.1% from the previous fiscal year, as the main market, the United States, secured higher revenue but the United Kingdom, India and Indonesia struggled, among other factors.」
The United Kingdom, India and Indonesia struggled despite higher revenue in the United States, resulting in a 2.1% year-on-year decline in overseas revenue. Differences in performance among overseas sites have continued. - FY2026-H1WorsenedAnnual report
「Overseas revenue was ¥2,376 million, down 10.0% year on year, as the main market, the United States, posted a slight increase in revenue but the United Kingdom, India and Indonesia struggled, among other factors.」
Although the United States posted a slight increase in revenue, struggles in the United Kingdom, India and Indonesia caused overseas revenue to fall 10.0% year on year, and overseas sites that were not contributing to earnings continued to weigh on performance. - FY2025WorsenedAnnual report
「At the Kadence Group's overseas operating companies, research in the United Kingdom performed well, while sites in Indonesia and Singapore struggled, resulting in lower revenue.」
Across overseas sites, the recovery in North America contrasted with struggles at sites in Indonesia, Singapore and elsewhere, which emerged as factors behind lower revenue in the Insights business. - FY2023-Q2MitigatedAnnual report
「At overseas sites of the Kadence Group, earnings in North America and India expanded in line with the recovery in economic activity.」
Earnings at overseas sites in North America and India continued to expand, and recovery from the pressure on profit from sites that were not contributing to earnings continued to be indicated. - FY2022MitigatedAnnual report
「Overseas operating companies were also driven by earnings growth, mainly at sites in the United States and India, as economic activity recovered from the COVID-19 pandemic.」
It was explained that recovery from the pressure on profit from sites that were not contributing to earnings was progressing, driven by earnings growth at sites in the United States and India and improved cost efficiency. - FY2022-Q2MitigatedAnnual report
「The overseas business as a whole has continued to contribute to earnings, partly as a result of fixed-cost reductions pursued since the previous year.」
In addition to fixed-cost reductions, some overseas subsidiaries that had continued to post operating losses were sold or wound down, advancing measures to address the pressure on profit from sites that were not contributing to earnings. - FY2022-Q1MitigatedAnnual report
「Although recovery in the economic environment has been delayed at some Asian sites, project orders and revenue have generally remained solid overseas, and the impact of fixed-cost reductions pursued since the previous year has resulted in continued earnings contribution from the overseas business as a whole.」
Although recovery remains delayed at some Asian sites, the effect of fixed-cost reductions has enabled the overseas business as a whole to continue contributing to earnings. - FY2021MitigatedAnnual report
「Each overseas operating company site was affected by COVID-19. Although revenue has struggled to grow, fixed costs have been reduced in a timely manner through office relocations, downsizing and other measures, and a certain recovery in segment profit is being pursued.」
Revenue at overseas sites has struggled to grow, but fixed costs have been reduced through office relocations, downsizing and other measures, and a certain recovery in segment profit is being pursued. - FY2020MaterialisedAnnual report
「Fixed assets and goodwill at consolidated subsidiaries, for which earnings could no longer be estimated, decreased from the end of the previous fiscal year because impairment losses of ¥85 million were recorded.」
The impact of sites that were not contributing to earnings actually emerged as ¥85 million in impairment losses on fixed assets and goodwill at multiple sites. - FY2019MitigatedAnnual report
「As a result, the goodwill balance was ¥287 million as of the end of December 2019, and we recognize that the impact and risk that goodwill will have on consolidated performance going forward have decreased.」
Impairment losses arose as overseas sites became unprofitable, but the goodwill balance after impairment was ¥287 million, and it was explained that the impact and risk of goodwill on future consolidated performance had decreased. - FY2020-Q1WorsenedAnnual report
「Because the expected earnings could no longer be anticipated at Kadence International Limited (UK), Kadence International Inc. (USA), Kadence International Business Reserch Pte. Ltd. (Singapore) and Kadence International, PT (Indonesia), the full carrying amount of goodwill, tools, equipment and fixtures and other assets, ¥1,049.326 million, was recognized as an impairment loss and recorded under extraordinary losses.」
The impact of overseas sites that were not contributing to earnings continued to become more concrete in the form of ¥1,049.326 million in impairment losses at 4 companies. - FY2019-Q4WorsenedAnnual report
「Because the expected earnings could no longer be anticipated at Kadence International Limited (UK), Kadence International Inc. (USA), Kadence International Business Reserch Pte. Ltd. (Singapore) and Kadence International, PT (Indonesia), the full carrying amount of goodwill, tools, equipment and fixtures and other assets, ¥1,060.451 million, was recognized as an impairment loss and recorded under extraordinary losses.」
The impact of overseas sites that were not contributing to earnings became more concrete in the form of ¥1,060.451 million in impairment losses at 4 companies. - FY2017MaterialisedAnnual report
「Segment profit (operating profit) fell below the same period of the previous year, partly due to the impact of domestic operating companies' revenue remaining at the same level as in the same period of the previous year and the impact of overseas operating company sites that were not contributing to earnings.」
The impact of overseas sites that were not contributing to earnings continued to emerge in the full fiscal year as a factor behind the 16.7% decline in research business segment profit. - FY2018-Q1First statedAnnual report
「Although revenue for the business as a whole increased, segment profit (operating profit) fell below the same period of the previous year, partly due to the impact of progress in domestic operating companies' revenue and the impact of sites that were not contributing to earnings.」
The existence of sites that were not contributing to earnings has been identified as a factor behind segment profit falling below the same period of the previous year despite the research business's revenue growth.