Decline in Gross Margin Due to a Higher Proportion of Merchandise Sales
First written in FY2019-Q1. 9 of 18 entries say "Worsened", first in FY2024-Q1. Latest entry: 2026-09-14.
Imura & moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2023: 5 of 10 companies on the "Worse" side.
5 other companies' latest entry also says "Worsened".
- 2026-09-14WorsenedEarnings
「In terms of earnings, operating profit was ¥588 million, down 40.3% year on year, mainly because the cost ratio rose as a result of the higher depreciation burden associated with the start-up of the new plant and higher material prices.」
The depreciation burden from the new plant and higher material prices have translated into a higher cost ratio and lower profit in the Package Solutions Business. - FY2027-H1WorsenedAnnual report
「In terms of earnings, operating profit was ¥588 million, down 40.3% year on year, mainly because the cost ratio rose as a result of the higher depreciation burden associated with the start-up of the new plant and higher material prices.」
In addition to the traditional product mix and higher merchandise purchases, higher costs resulting from depreciation at the new plant and rising material prices were identified as factors behind lower profit, and operating profit in the Package Solutions Business fell 40.3% year on year. - FY2026-H1AdvancedAnnual report
「In terms of profit and loss, the gross profit margin rose as the ratios of raw material costs, subcontracted processing fees and other costs declined, while fixed labor costs decreased due to a reduction in personnel and other factors. Operating profit was ¥1,215 million, up 18.7% year on year, and ordinary profit was ¥1,255 million, up 17.5%.」
The gross profit margin rose as the ratios of raw material costs, subcontracted processing fees and other costs declined, while lower fixed labor costs also contributed, resulting in operating profit and ordinary profit exceeding the previous year's levels. - FY2025Shift toward an improving gross profit marginAnnual report
「Along with efforts to control variable labor costs and various expenses, the gross profit margin improved as sales of value-added products were strengthened, and operating profit was ¥1,307 million, up 0.2% year on year.」
Where the company had previously cited a decline in the gross profit margin due to the product mix and other factors, it now identifies improvement driven by stronger sales of value-added products as a factor behind higher profit. - FY2025-H1RestatedAnnual report
「In terms of profit and loss, the gross profit margin declined partly because purchases of merchandise increased as the handling of services related to shareholder benefit programs expanded, in addition to the impact of lower revenue, and operating profit was ¥114 million, down 50.9% year on year.」
The increase in merchandise purchases associated with the expansion of shareholder benefit-related services was a factor behind the decline in the gross profit margin, and operating profit in the Mailing & Digital Solutions Business fell 50.9% year on year. - FY2025-Q1WorsenedAnnual report
「In addition to the impact of the loss of spot projects generated in the previous fiscal year, construction of the system for a new service offered to local governments was delayed. Although services related to shareholder benefit programs expanded, net sales declined 17.4% year on year to ¥957 million. In terms of profit and loss, in addition to the impact of lower revenue, the gross profit margin declined partly because purchases of merchandise increased as shareholder benefit-related services expanded, and operating profit fell 91.9% to ¥11 million.」
In the Mailing & Digital Solutions Business, the decline in the gross profit margin continued, and operating profit fell to 91.9% below the previous year's level. - FY2024WorsenedAnnual report
「The gross profit margin declined partly because purchases of merchandise increased as services related to shareholder benefit programs expanded, and operating profit was ¥275 million, down 48.2% from the previous fiscal year.」
In the Mailing Service Business, the decline in the gross profit margin due to higher merchandise purchases continued, and operating profit fell 48.2% from the previous fiscal year. - FY2024-Q3WorsenedAnnual report
「In terms of profit and loss, the gross profit margin declined partly because purchases of merchandise increased as services such as shareholder benefit programs expanded, and operating profit was ¥272 million, down 42.3% year on year.」
In the Mailing Service Business, the gross profit margin declined as purchases of merchandise increased with the expansion of services, and operating profit fell 42.3% year on year. - FY2024-Q2WorsenedAnnual report
「In terms of profit and loss, the gross profit margin declined partly because purchases of merchandise increased in connection with the provision of services such as shareholder benefit programs, and operating profit was ¥214 million, down 41.1% year on year.」
In the Mailing Service Business, the gross profit margin declined as purchases of merchandise increased in connection with the provision of services such as shareholder benefit programs, and operating profit fell 41.1% year on year. - FY2024-Q1WorsenedAnnual report
「(Mailing Service Business) In terms of profit and loss, partly due to the decline in the gross profit margin resulting from lower processing revenue, operating profit was ¥143 million, down 13.5% year on year.」
In the Mailing Service Business, the gross profit margin declined due to lower processing revenue, and operating profit fell 13.5% year on year. - FY2023-Q3RestatedAnnual report
「(Mailing services business) Although revenue from existing projects declined due to reviews of plans amid the COVID-19 pandemic, revenue increased to ¥3,140 million, up 10.0% year on year, with the addition of newly arising public-sector demand. In terms of earnings, in addition to the effect of higher revenue, the gross profit margin improved, and operating profit increased to ¥473 million, up 56.6% year on year.」
In the Mailing Service Business, the company continues to explain that the higher gross profit margin was a factor behind the increase in operating profit. - FY2020RestatedAnnual report
「In the Package Solutions Business, including the contribution from the spot projects described above, net sales increased 0.9% year on year to ¥18,027 million. In terms of profit and loss, in addition to the effect of higher revenue, the gross profit margin improved as product sales grew, and operating profit increased 1.0% to ¥403 million.」
The improvement in the gross profit margin resulting from growth in product sales was a factor behind higher profit for the full fiscal year as well. - FY2020-Q3Shift from a declining gross profit margin to an improving gross profit marginAnnual report
「(Package Solutions Business) Including the contribution from the spot projects described above, net sales increased 3.1% year on year to ¥13,835 million. In terms of profit and loss, in addition to the effect of higher revenue, the gross profit margin improved as product sales grew, and operating profit increased 22.2% to ¥461 million.」
Although the higher proportion of merchandise sales had previously been a factor behind the decline in profit through its impact on the gross profit margin, the company states that in the current quarter the improvement in the gross profit margin resulting from growth in product sales was a factor behind higher profit. - FY2019-Q3RestatedAnnual report
「As a result, net sales for the nine-month period ended the third quarter of the current consolidated fiscal year were ¥16,950 million, down 1.3% year on year, owing mainly to weak performance in the Mailing Service Business. In terms of profit and loss, partly due to lower revenue and the decline in the gross profit margin resulting from the higher proportion of merchandise sales, operating profit was ¥357 million, down 26.0%, and ordinary profit was ¥435 million, down 21.5%.」
The company continues to identify the decline in the gross profit margin resulting from the higher proportion of merchandise sales as a factor behind the declines in operating profit and ordinary profit. - FY2019-Q2RestatedAnnual report
「Net sales for the six-month period ended the second quarter of the current consolidated fiscal year were ¥11,891 million, down 1.2% year on year, owing mainly to weak performance in the Mailing Service Business. In terms of profit and loss, partly due to lower revenue and the decline in the gross profit margin resulting from the higher proportion of merchandise sales, operating profit was ¥398 million, down 28.2%, and ordinary profit was ¥458 million, down 24.1%.」
The company continues to identify the decline in the gross profit margin resulting from the higher proportion of merchandise sales as a factor behind the declines in operating profit and ordinary profit. - FY2019-Q1First statedAnnual report
「In terms of profit and loss, partly due to lower revenue and the decline in the gross profit margin resulting from the higher proportion of merchandise sales, operating profit was ¥170 million, down 52.8% year on year, ordinary profit was ¥182 million, down 51.1%, and profit attributable to owners of the parent was ¥190 million, down 23.3%.」
The company has for the first time specifically identified the decline in the gross profit margin associated with the higher proportion of merchandise sales as a factor behind the decline in operating profit and other earnings.