Profit pressure from the product mix and development prototyping costs
First written in FY2019-Q1. 6 of 14 entries say "Worsened", first in FY2021-Q1. Latest entry: FY2027-H1.
Miraial moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2023: 5 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「(Plastic molding business) During the interim consolidated accounting period, net sales were ¥7,359 million, up 29.7% year on year, and operating profit was ¥967 million, up 60.6%.」
The plastic molding business recorded higher revenue and profit, and profitability in the current interim period was relatively less affected than in the period when profit pressure from product mix and development- and quality-related costs had previously been evident. - FY2025WorsenedAnnual report
「Due to higher depreciation associated with capital investment and soaring utilities costs, cost of sales increased by ¥829 million year on year to ¥10,836 million. Operating profit for the current consolidated fiscal year was ¥1,434 million, down 5.7% from the previous consolidated fiscal year, while the operating margin was 10.2%, compared with 11.5% in the previous consolidated fiscal year.」
Higher depreciation associated with capital investment and soaring utilities costs pushed up cost of sales, causing the operating margin to decline from 11.5% to 10.2%. The impact of factors pressuring profits emerged in the full-year results. - FY2025-Q1WorsenedAnnual report
「Inventory adjustments for semiconductor-related products continued and demand remained weak, but the market had bottomed. The business reported higher revenue and earnings quarter on quarter, although revenue and earnings declined year on year against a backdrop of strong demand in the same quarter of the previous year.」
Year on year, the plastic molding business recorded lower revenue and profit due to inventory adjustments and weakening demand for semiconductor-related products. Although revenue and profit increased from the previous quarter, renewed profit pressure was evident compared with the strong demand in the previous year. - FY2024WorsenedAnnual report
「Due to lower shipments of the Company's mainstay semiconductor-related products, cost of sales decreased by ¥26 million year on year to ¥10,007 million. Although commissions paid increased following the conclusion of a consulting agreement, selling, general and administrative expenses decreased by ¥46 million year on year to ¥1,727 million due to lower sales commissions, freight and other costs associated with lower shipments of semiconductor-related products.」
Lower shipments of semiconductor-related products and higher commissions paid under the consulting agreement affected profitability. Operating profit fell 38.1% year on year, and the operating margin declined from 17.2% to 11.5%. The theme of profit pressure from product mix and development- and quality-related costs emerged as a deterioration in full-year results. - FY2024-Q1WorsenedAnnual report
「Against this backdrop, the plastic molding business continued to report higher revenue and earnings quarter on quarter, as strong demand for semiconductor-related products persisted. However, revenue increased and earnings declined year on year because several high-value-added products had been concentrated in the same quarter of the previous year.」
Although strong demand for semiconductor-related products continued, the plastic molding business recorded higher revenue but lower profit because several high-value-added products had been concentrated in the year-earlier period. Profit pressure from product mix re-emerged in the quarterly results. - FY2023MitigatedAnnual report
「Operating profit for the current consolidated fiscal year was ¥2,457 million, up 29.4% from the previous consolidated fiscal year, while the operating margin was 17.2%, compared with 16.3% in the previous consolidated fiscal year.」
Although raw material and purchased component costs rose and depreciation and labor costs increased due to the operation of expanded production facilities, the operating margin rose from 16.3% to 17.2%. The impact of profit pressure from product mix and development- and quality-related costs was relatively alleviated in the full-year results. - FY2022MitigatedAnnual report
「Operating profit for the current consolidated fiscal year was ¥1,898 million, up 118.5% from the previous consolidated fiscal year, while the operating margin was 16.3%, compared with 8.9% in the previous consolidated fiscal year.」
The operating margin, which had declined in the previous fiscal year, rose from 8.9% to 16.3%, and the impact of profit pressure from product mix and development- and quality-related costs was relatively alleviated in the full-year results. - FY2022-Q1MitigatedAnnual report
「In this business environment, the plastic molding business reported higher net sales and earnings year on year, as demand for semiconductor-related products remained firm and the results were also affected by changes in product mix and cost controls.」
Although changes in product mix continued to be mentioned, the plastic molding business recorded higher revenue and profit, partly due to cost controls and other factors. The profit pressure from development- and quality-related costs seen in the previous fiscal year was relatively alleviated in the latest quarterly results. - FY2021Higher revenue but lower profit; declining profit marginAnnual report
「Operating profit for the current consolidated fiscal year was ¥868 million, down 30.5% from the previous consolidated fiscal year, while the operating margin was 8.9%, compared with 13.0% in the previous consolidated fiscal year.」
While sales increased 1.6%, operating profit declined 30.5%, and the operating margin fell from 13.0% to 8.9%. The deterioration in full-year profitability was related to the theme of profit pressure from product mix and development- and quality-related costs. - FY2021-Q3RestatedAnnual report
「The global economy remained sluggish during the cumulative third quarter under review due to the US-China trade friction, the spread of COVID-19 and other factors. Demand in the semiconductor industry remained firm, but the company reported higher net sales and lower earnings year on year, partly due to quality improvement activities and changes in product mix.」
Development- and quality-related activities and changes in product mix continued to be identified as factors pressuring profits. Although semiconductor demand was firm, revenue increased while profit declined overall, reconfirming the presence of factors pressuring profits. - FY2021-Q1WorsenedAnnual report
「Demand for semiconductor-related products remained sluggish, and revenue and profit declined year on year, partly due to higher development and quality-enhancement costs and changes in product mix. As a result, sales for the cumulative first quarter of the current consolidated fiscal year were ¥2,334 million, down 13.2% year on year, and operating profit was ¥215 million, down 57.4%.」
In addition to the existing burden of development and prototyping costs and product mix, higher quality-enhancement costs were identified as a factor pressuring profits. Combined with sluggish demand for semiconductor-related products, the impact was quantified as lower revenue and profit, including a 57.4% decline in operating profit. - FY2019-Q1First statedAnnual report
「Although the business environment surrounding the Company during the cumulative first quarter of the current consolidated fiscal year remained characterized by high levels of reuse of shipping containers for silicon wafers, sales conditions were favorable, supported by strong activity in the semiconductor and silicon wafer industries. However, factors including product mix and development and prototyping costs put pressure on profits, resulting in higher revenue but lower profit year on year. As a result, sales were ¥2,280 million, up 7.5% year on year; operating profit was ¥259 million, down 13.7%; ordinary profit was ¥283 million, down 9.6%; and quarterly profit attributable to owners of the parent was ¥237 million, down 9.9%.」
Although sales increased on strong activity in the semiconductor industry, factors including product mix and development and prototyping costs put pressure on profits, resulting in operating profit, ordinary profit and quarterly profit attributable to owners of the parent falling below the year-earlier levels.