Thorough Cost Reduction and Fixed-Cost Compression
First written in FY2016. 12 of 32 entries say "Advanced", first in FY2017-Q1. Latest entry: FY2026.
24 other companies' latest entry also says "Other".
- FY2026Higher labor costs from staff reassignments following the separation of a business coexisted with fixed-cost reductions.Annual report
「Operating income was ¥1,825 million, down 0.4% from the previous fiscal year, as labor and other costs increased due to staff reassignments following the separation of a business, despite continued efforts to review and reduce the cost structure.」
While reviews and reductions of the cost structure continued, labor costs increased due to staff reassignments following the separation of a business, and operating income in the living environment segment declined year on year. - FY2026-H1Higher labor costs from staff reassignments following the separation of a businessAnnual report
「Operating income declined slightly to ¥1,012 million, down 1.9% year on year, mainly because labor costs increased due to staff reassignments following the separation of a business.」
Staff reassignments following the separation of a business increased labor costs, and operating income in the living environment segment declined 1.9% year on year. The disclosure describes not only progress in reducing fixed costs but also higher costs associated with the restructuring. - FY2025-H1AdvancedAnnual report
「Operating income was ¥1,013 million, up 13.7% year on year, due to higher revenue and the effects of reducing fixed costs, including selling, general and administrative expenses.」
The effects of reducing fixed costs, including selling, general and administrative expenses, emerged in the HS business, and operating income increased 13.7% year on year despite the mix including businesses with lower revenue. - FY2024AdvancedAnnual report
「Operating income was ¥1,716 million, up 28.3% from the previous fiscal year, due to higher revenue, lower outsourced construction costs, and the effects of reducing fixed costs, including selling, general and administrative expenses.」
In the HS division, lower outsourced construction costs and fixed-cost reductions contributed to improved earnings, and operating income increased 28.3% from the previous fiscal year. The effects of the cost reduction measures were confirmed in the full-year figures. - FY2024-Q3AdvancedAnnual report
「Operating income was ¥1,277 million, up 33.6% year on year, due to higher revenue, lower outsourced construction costs, and the effects of reducing fixed costs, including selling, general and administrative expenses.」
In the HS division, lower outsourced construction costs and fixed-cost reductions contributed to improved earnings, and operating income increased 33.6% year on year. - FY2024-Q2The benefits of fixed-cost reductions coexisted with higher repair, material, and other costs.Annual report
「Operating income was ¥891 million, up 0.8% year on year, despite lower revenue, due to lower outsourced construction costs and the effects of reducing fixed costs, including SG&A expenses. In the environmental resources development division, repair costs were recorded in connection with the statutory inspection of the boiler and turbine at the Tomakomai Power Plant in April 2023, but profit improved as electricity sales contract prices increased. In the PV division, we focused on selling and installing self-consumption solar power generation systems for companies and corporate customers, proposing PPA businesses to local governments, selling solar power plants with land, replacing equipment at existing solar power generation systems, and providing maintenance services. The division recorded an operating loss of ¥50 million, compared with an operating loss of ¥159 million in the same period of the previous year, partly due to higher prices for materials and supplies.」
In HS, lower outsourced construction costs and fixed costs lifted profit, while the environmental resources development business incurred repair costs related to a statutory inspection and PV faced higher material and supply prices. Cost reductions therefore coexisted with higher costs. - FY2024-Q1Higher repair, material, and other costs weighed on earnings.Annual report
「Partly due to the impact of repair costs recorded in connection with legally required boiler and turbine inspections at the Tomakomai Power Plant in April 2023, group-wide operating profit was ¥154 million, down 54.8% year on year; ordinary profit was ¥73 million, down 72.9%; and quarterly net profit attributable to owners of the parent was ¥63 million, down 63.6%.」
Repair costs associated with the statutory inspection weighed on company-wide profit, while costs increased in ES due to higher material and other costs, and material and supply prices rose in PV. Cost containment and efficiency improvements therefore coexisted with higher costs. - FY2023-Q3Higher staffing and fixed costs coexisted with the effects of cost reductions.Annual report
「Operating income was ¥956 million, down 49.9% year on year, as lower revenue and higher fixed costs, including labor costs, resulting from increased staffing for store openings and other purposes weighed on earnings.」
In HS, fixed costs increased due to higher staffing associated with store openings and other activities, resulting in a 49.9% year-on-year decline in earnings. Cost containment and efficiency improvement initiatives coexisted with higher fixed costs accompanying business expansion. - FY2023-Q2Higher staffing, fixed costs, and material prices coexisted with the effects of cost reductions.Annual report
「Operating income was ¥883 million, down 36.6% year on year, as lower revenue and higher fixed costs, including labor costs, resulting from increased staffing for store openings and other purposes weighed on earnings. In the PV division, SG&A expenses decreased due to staff reassignments with the SE division following organizational restructuring, but higher prices for materials and supplies increased the cost ratio, resulting in an operating loss of ¥159 million.」
In HS and ES, higher fixed costs associated with store openings and increased staffing weighed on earnings, while in PV, staff reassignments reduced SG&A expenses. However, higher material and supply prices increased the cost ratio, resulting in an operating loss. - FY2023-Q1Higher fixed costs and material prices coexisted with lower costs from staff reassignments.Annual report
「In the PV division, SG&A expenses decreased due to staff reassignments with the SE division following organizational restructuring, but the cost ratio increased due to higher prices for materials and supplies, resulting in an operating loss of ¥67 million.」
Staff reassignments following organizational restructuring reduced SG&A expenses, while higher material and supply prices pushed up the cost ratio in the PV business. In HS and ES, higher fixed costs associated with store openings and increased staffing also weighed on earnings. - FY2022The benefits of improved construction efficiency coexisted with higher material prices and electricity procurement costs.Annual report
「Profit was affected by lower revenue and higher material prices in the SE division, as well as repair costs associated with the statutory inspection of the Tomakomai Power Plant in the environmental resources development division. In addition, wholesale electricity market prices on JEPX rose sharply from October 2021 in the new electricity business of the energy division. Electricity supply became tight following the earthquake off the coast of Fukushima Prefecture in March 2022, and global energy prices also rose sharply due to the Russia-Ukraine situation, resulting in a significant increase in electricity procurement costs.」
Improved construction efficiency contributed to higher earnings in HS, but higher material prices in SE, power plant repair costs, and higher electricity procurement costs in the energy business weighed on company-wide earnings, resulting in an operating loss of ¥2,618 million. - FY2022-Q3The benefits of improved construction efficiency coexisted with higher material prices and electricity procurement costs.Annual report
「In addition to the impact of lower revenue in the SE division and rising material prices, as well as repair costs at the Tomakomai Power Plant due to legally required inspections and other factors, electricity procurement costs in the Energy division’s new electricity business increased more than expected as prices on the wholesale electricity market (JEPX) surged from October 2021. As a result, group-wide operating profit was ¥181 million, down 92.4% year on year; ordinary profit was ¥0 million, down 100.0%; and quarterly net loss attributable to owners of the parent was ¥306 million, compared with quarterly net profit attributable to owners of the parent of ¥1,915 million in the same period of the previous year.」
While cost reduction and efficiency improvement initiatives continued, higher material prices in SE, repair costs at the Tomakomai Power Plant, and higher electricity procurement costs in the energy business weighed on overall profit. - FY2022-Q2The benefits of improved construction efficiency coexisted with higher labor and electricity procurement costs.Annual report
「Operating income was ¥1,394 million, up 19.3% year on year, as higher revenue and improved construction efficiency outweighed higher labor and other costs resulting from increased staffing. The energy business recorded an operating loss of ¥124 million, compared with an operating loss of ¥33 million in the same period of the previous year, as higher procurement costs resulting from increased electricity procurement prices in the new electricity business and higher expenses from increased staffing to expand the third-party-owned solar power generation model weighed on earnings.」
In HS, improved construction efficiency outweighed higher costs from increased staffing, while in the energy business, higher electricity procurement prices and the cost of additional staff for expansion weighed on earnings. - FY2022-Q1Business-specific efficiency improvements coexisted with deterioration in company-wide earnings.Annual report
「Operating income was ¥716 million, up 31.5% year on year, as higher revenue and improved construction efficiency outweighed higher labor and other costs resulting from increased staffing. Operating income was ¥35 million, compared with an operating loss of ¥80 million in the same period of the previous year, as lower electricity procurement costs for the new electricity business outweighed higher expenses from increased staffing to expand the third-party-owned solar power generation model.」
Improved construction efficiency contributed to higher earnings in HS, while lower electricity procurement costs contributed to improved earnings in the energy business. However, labor and other costs also increased due to higher staffing, resulting in a company-wide operating loss of ¥102 million. - FY2021RestatedAnnual report
「Despite reducing the material cost ratio and controlling selling, general and administrative expenses, the substantial impact of lower revenue resulted in operating income of ¥250 million, down 72.3% from the previous fiscal year.」
Cost reductions, including lower material costs and SG&A cost containment, continued, but the impact of lower revenue outweighed them in the SE business. - FY2021-Q3RestatedAnnual report
「Despite reducing the material cost ratio and controlling selling, general and administrative expenses, the substantial impact of lower revenue resulted in operating income of ¥219 million, down 70.4% year on year.」
The SE business continued to reduce its material cost ratio and contain SG&A expenses, but the impact of lower revenue was substantial. The coexistence of cost containment and higher labor costs accompanying business expansion continued. - FY2021-Q2Cost containment coexisted with higher costs from increased staffing.Annual report
「Despite controlling selling, general and administrative expenses, the substantial impact of lower revenue resulted in operating income of ¥233 million, down 21.7% year on year.」
While SG&A cost containment progressed in SE, labor and other costs increased in HS and ES due to higher staffing. The effects of company-wide cost reductions have emerged differently by business. - FY2020-Q3AdvancedAnnual report
「Operating income was ¥741 million, up 44.5% year on year, due to higher revenue and progress in reducing expenses and material costs, including through personnel transfers to the HS division.」
The effects of staff reassignments from SE to HS, expense reductions, and material cost reductions continued, and operating income in the SE business increased 44.5% year on year. The effects of the cost reduction measures are reflected in profit. - FY2020-Q2AdvancedAnnual report
「Although revenue declined, progress in reducing expenses and material costs, including through personnel transfers to the HS division, resulted in operating income of ¥298 million, up 439.4% year on year.」
Expense reductions from staff reassignments and material cost reductions continued in the SE business, and operating income increased 439.4% year on year. The effects of the cost reduction measures are reflected in the figures. - FY2020-Q1AdvancedAnnual report
「Operating income was ¥867 million, up 150.4% year on year, due to screening accepted projects involving waste plastics and organic waste liquids, as well as cost reductions resulting from a detailed review of costs.」
After screening accepted projects and reviewing costs to reduce costs, operating income in the environmental resources development division increased 150.4% year on year to ¥867 million. - FY2019RestatedAnnual report
「In the solar power-related business, costs for related components have been reduced substantially. We will continue to focus on lowering prices for solar modules and residential storage batteries, for which demand is expected to grow, while improving productivity through efficient construction and working to reduce costs and expenses.」
We have reaffirmed the continued need to lower component prices, improve construction efficiency and productivity, and reduce costs and expenses. - FY2019-Q3RestatedAnnual report
「The division promoted expense reductions and lower material costs, including through personnel transfers to the HS division, but the decline in revenue had a significant impact on earnings, resulting in operating income of ¥513 million, down 61.9% year on year.」
We continued to reassign staff to HS and reduce expenses and material costs, but the impact of lower revenue in the SE business was substantial, and SE operating income decreased significantly year on year. - FY2019-Q2RestatedAnnual report
「The division promoted expense reductions and lower material costs, including through personnel transfers to the HS division, but the decline in revenue had a significant impact on earnings, resulting in operating income of ¥55 million, down 94.1% year on year.」
We continued to reassign staff from SE to HS and reduce expenses and material costs, but the impact of lower revenue in SE was substantial, and profit decreased significantly year on year. - FY2019-Q1RestatedAnnual report
「The division promoted expense reductions and lower material costs, including through personnel transfers to the HS division, but the decline in revenue had a significant impact on earnings, resulting in an operating loss of ¥88 million, compared with operating income of ¥442 million in the same period of the previous year.」
Staff reassignments, expense reductions, and material cost reductions continued, but the impact of lower revenue in the SE business was substantial, resulting in an operating loss. - FY2018AdvancedAnnual report
「All profit levels from operating income downward increased, as the HS and ES divisions recorded substantial revenue growth and selling, general and administrative expenses declined due to progress in reducing expenses through management rationalization and other measures.」
Selling, general and administrative expenses decreased from ¥13,106 million in the previous fiscal year to ¥12,798 million, while consolidated operating income increased from ¥1,036 million to ¥1,246 million. The effects of rationalization and expense reductions were reflected in the full-year figures. - FY2018-Q3RestatedAnnual report
「The environmental resources development division recorded lower earnings, mainly due to higher costs resulting from the statutory inspection of the boiler at the Tomakomai Power Plant. The other 3 business divisions each recorded higher earnings as management rationalization and other measures reduced expenses and material costs. As a result, the Group recorded operating income of ¥773 million, up 14.6% year on year.」
Lower expenses and material costs resulting from management rationalization contributed to higher earnings in the other 3 business divisions, continuing to demonstrate the effects of the rationalization measures. - FY2018-Q1AdvancedAnnual report
「Profitability improved in all 4 business divisions through lower expenses and material costs resulting from management rationalization and other measures. As a result, the Group recorded operating income of ¥396 million, compared with an operating loss of ¥446 million in the same period of the previous year.」
The effects of lower expenses and material costs extended across all 4 business divisions, improving consolidated operating results from a loss of ¥446 million in the same period of the previous year to income of ¥396 million. - FY2017AdvancedAnnual report
「During the first half of the consolidated fiscal year, we recruited voluntary retirees and steadily advanced management rationalization measures, including the consolidation and closure of stores and the downsizing of the logistics and production divisions, thereby implementing structural reforms.」
Structural reforms were implemented throughout the fiscal year, reducing selling, general and administrative expenses from ¥16,013 million in the previous fiscal year to ¥13,106 million. - FY2017-Q3AdvancedAnnual report
「During the first nine months of the fiscal year, we implemented fundamental management rationalization measures, including recruiting voluntary retirees, consolidating and closing stores, and downsizing the logistics and production divisions.」
We continued measures including voluntary retirement, store consolidation and closures, and the downsizing of the logistics and production divisions to reduce fixed costs. Selling, general and administrative expenses decreased from ¥12,354 million in the same period of the previous year to ¥9,808 million. - FY2017-Q2AdvancedAnnual report
「During the first six months of the fiscal year, we recruited voluntary retirees and implemented measures including the consolidation and closure of stores and the downsizing of the logistics and production divisions, with the aim of establishing an appropriate business scale.」
The continued implementation of voluntary retirement, store consolidation and closures, and the downsizing of the logistics and production divisions improved the gross profit margin through lower expenses and material costs, resulting in consolidated operating income of ¥103 million. - FY2017-Q1AdvancedAnnual report
「To establish an appropriate business scale, we recruited voluntary retirees and consolidated and closed stores, while also downsizing the logistics and production divisions.」
Rationalization measures were also implemented in the first quarter, reducing the consolidated operating loss year on year through lower expenses and material costs. - FY2016First statedAnnual report
「During the consolidated fiscal year, we reduced fixed costs across the board and improved our earnings structure through measures including the recruitment of approximately 900 voluntary retirees and the consolidation and closure of stores.」
Rationalization is under way through measures including recruiting approximately 900 voluntary retirees, consolidating and closing stores, reducing component costs, improving construction productivity, and cutting expenses.