Risk of losses widening due to ongoing investment
First written in FY2020. 4 of 7 entries say "Mitigated", first in FY2021. Latest entry: FY2024-Q3.
The whole theme swung hardest in 2017: 6 of 21 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- FY2024-Q3MitigatedAnnual report
「This was attributable to achieving an operating profit in the previous fourth-quarter consolidated accounting period (January to March 2023), followed by operating profits in 2 consecutive quarters, the second-quarter consolidated accounting period (July 2023 to September 2023) and the current third-quarter consolidated accounting period (October 2023 to December 2023).」
As a measure against the risk of widening losses from continued investment, the Company states that it achieved operating profits for 2 consecutive quarters, the second and third quarters, following the previous fourth quarter. - FY2024-Q2MitigatedAnnual report
「In the business, gross profit per employee has increased as the organizational structure was strengthened, while continued reviews of selling, general and administrative expenses have significantly improved profitability.」
The Company states that profitability improved significantly through strengthening its organizational structure and continuously reviewing selling, general and administrative expenses, demonstrating actual measures taken against the risk of losses from investment and cost burdens. - FY2024-Q1MitigatedAnnual report
「We are also continuing to pursue disciplined investment and productivity improvement measures. We expect to achieve operating profitability for the month of July, and are progressing as planned toward operating profitability for the full fiscal year.」
In response to the risk of losses from continued investment, the Company states that it is continuing disciplined investment, productivity improvement measures and structural reforms, and that its operating loss narrowed year on year. - FY2023-Q3WorsenedAnnual report
「Although the Company strengthened investment in products, marketing and new services in the previous consolidated fiscal year, the resulting benefits have been delayed. Accordingly, during the current consolidated fiscal year, the Company is pursuing more disciplined investment.」
The delay in the effects of the previous fiscal year’s investments has continued, and the Company also posted an operating loss for the cumulative third quarter. The risk of deteriorating performance from investment continues to be reflected in actual results. - FY2022WorsenedAnnual report
「Although the Company strengthened investment in products, marketing and new services in its marketplace business, which expanded rapidly in the previous consolidated fiscal year, the recovery of those investments was delayed and growth in the current consolidated fiscal year was limited. The Company had planned a partial withdrawal from its managed services business, including withdrawal from the contract-based Lancers Outsourcing service, but changed its policy to a complete withdrawal from the managed services business, including fixed-fee services, in light of its growth potential and profitability. Against the backdrop of this business withdrawal and continued investment activity, the Company posted an operating loss for the current consolidated fiscal year.」
The Company posted an operating loss against a backdrop of delayed investment recovery, business withdrawal and continued investment, demonstrating that the risk of deteriorating performance from continued investment had materialized. - FY2021MitigatedAnnual report
「The Group has strengthened its budget-versus-actuals management framework and monitors investment effectiveness as appropriate.」
In response to the risk of deteriorating performance from continued investment in advertising and sales promotion and new services, the Company manages budgets against actual results and monitors investment effectiveness. Advertising and sales promotion expenses declined from ¥601.347 million to ¥223.896 million, and the Company returned to profitability for the current fiscal year. - FY2020First statedAnnual report
「The Company plans to continue investing actively in advertising and sales promotion and in expanding new services. However, if the investment does not produce the expected results and the cost burden increases, the Group’s performance may be affected.」
The Company recorded ¥601.347 million in advertising and sales promotion expenses and ¥623.438 million in personnel expenses, and posted an operating loss of ¥307.284 million in the fiscal year ended March 2020.