Cost burden driven by securing personnel and higher electricity costs
First written in FY2023-Q3. 5 of 9 entries say "Mitigated", first in FY2024. Latest entry: FY2027-H1.
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- FY2027-H1MitigatedAnnual report
「For the interim consolidated accounting period, average enrollment during the period at TOMAS, Meimonkai, Shingakai and Plus One Education, as well as the number of operating School TOMAS locations and individual tutoring students, increased year on year. In addition, efforts to improve cost efficiency, including advertising expenses, resulted in operating profit and ordinary profit exceeding twice the levels of the same period a year earlier, while both net sales and profit reached record highs for an interim consolidated accounting period.」
The filing states that cost efficiencies, including advertising expenses, led to improvements in operating profit and ordinary profit and record interim net sales and profit. - FY2026MaterialisedAnnual report
「Ordinary profit for the consolidated fiscal year was ¥2,732 million, down ¥205 million year on year. The ordinary profit margin was 8.0%, down 0.8 percentage points year on year. The main factor was an increase in fixed costs, including rent and personnel expenses.」
The filing states that higher fixed costs, including rent and personnel expenses, were an actual factor behind the decline in full-year ordinary profit and the ordinary profit margin. - FY2026-H1MaterialisedAnnual report
「In addition to higher rents at existing schools and higher land and building rents associated with opening new schools, costs temporarily increased due to higher personnel and recruitment costs resulting from base-pay increases to retain talented personnel, higher advertising expenses associated with opening new schools, and strategic investment costs for DX initiatives aimed at improving operating efficiency through use of the integrated Group customer database, generating Group synergies and maximising the value of customer services.」
Higher rents, land and building rents, personnel costs, recruitment costs, advertising expenses and DX investment costs actually occurred and were described as a cost burden accompanied by lower profit. - FY2025MitigatedAnnual report
「Ordinary income for the current consolidated fiscal year was ¥2,938 million, an increase of ¥283 million from the previous fiscal year. The ordinary income margin was 8.8%, up 0.6 percentage points year on year. The main factors were lower advertising expenses and more efficient use of expenses.」
Regarding the cost burden from personnel and advertising expenses, among others, which reduced profit in the previous fiscal year, stated that ordinary income and the profit margin improved through lower advertising expenses and more efficient use of expenses. - FY2024MitigatedAnnual report
「Ordinary income for the current consolidated fiscal year was ¥2,614 million, an increase of ¥171 million from the previous fiscal year. The ordinary income margin was 8.1%, up 0.3 percentage points year on year. The main factors were lower advertising expenses and more efficient use of expenses.」
Regarding the cost burden from personnel and advertising expenses, among others, which reduced profit in the previous fiscal year, stated that ordinary income and the profit margin improved in the current fiscal year due to lower advertising expenses and more efficient use of expenses. - FY2023MaterialisedAnnual report
「Ordinary income for the current consolidated fiscal year was ¥2,442 million, a decrease of ¥606 million from the previous fiscal year. The ordinary income margin was 7.8%, down 2.4 percentage points year on year. The main factors were higher personnel costs associated with an increase in employees and higher advertising expenses.」
Stated that higher personnel and advertising expenses associated with the increase in headcount actually occurred and contributed to the full-year decline in ordinary income and profit margin. - FY2023-Q3First statedAnnual report
「Operating income, ordinary income and quarterly net income attributable to owners of the parent fell below the prior-year period, due to higher personnel and recruitment advertising costs to secure talented personnel, higher utilities expenses resulting from worsening electricity market conditions, tight electricity supply and demand, and the situation in Ukraine, among other factors.」
For the first time, separately stated that higher personnel and recruitment advertising costs associated with securing personnel, and higher utilities expenses resulting from electricity market conditions, tight supply and demand and the situation in Ukraine, actually occurred and contributed to profit falling below the prior-year period.