Strengthening the earnings base through lower manufacturing costs, minimized fixed costs, and effective use of assets
First written in FY2016. 24 of 33 entries say "Advanced", first in FY2017. Latest entry: FY2026.
Ivy Cosmetics moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
24 other companies' latest entry also says "Other".
- FY2026Rising cost of sales and SG&A expenses, and declining profitAnnual report
「The cost of sales ratio was 30.2% (29.5% in the previous fiscal year, an increase of 0.7%). Although the company thoroughly managed its budget based on its expense policy, selling, general and administrative expenses increased by 0.2% from the previous fiscal year, partly due to the impact of rising prices of various goods and services.」
While pursuing budget management and cost reductions, the company saw both the cost of sales ratio and selling, general and administrative expenses rise from the previous fiscal year, and operating income and ordinary income declined. - FY2026-H1AdvancedAnnual report
「In terms of earnings, the cost of sales ratio declined by 1.5 percentage points from the previous interim accounting period. This reflected the higher proportion of products with relatively low cost ratios in the product sales mix, as well as the results of cost-reduction efforts at the factory becoming apparent.」
The cost of sales ratio declined by 1.5 percentage points year on year in the interim period, and the results of cost-reduction efforts at the factory became apparent. - FY2025AdvancedAnnual report
「Selling, general and administrative expenses decreased by 4.8% from the previous fiscal year as a result of thorough budget management based on the expense policy.」
Through budget management and fixed-cost controls, the company reduced selling, general and administrative expenses by 4.8% year on year, while operating income increased from ¥187.068 million to ¥422.626 million. - FY2025-H1AdvancedAnnual report
「During the current interim accounting period, selling, general and administrative expenses decreased by ¥73 million from the previous interim accounting period. The company believes that the resulting expense savings will remain effective throughout the year.」
The company continued to manage its budget against actual results based on its expense policy and reduced selling, general and administrative expenses by ¥73 million from the previous interim period. - FY2024AdvancedAnnual report
「Selling, general and administrative expenses decreased by 19.0% from the previous fiscal year as a result of thorough budget management based on the expense policy.」
The company continued budget management and fixed-cost reductions, cutting selling, general and administrative expenses by 19.0% year on year. Operating income also turned from an operating loss in the previous fiscal year to income of ¥187.068 million. - FY2024-Q3AdvancedAnnual report
「During the fiscal year, the company has managed its budget against actual results even more thoroughly based on its expense policy than in the previous fiscal year. During the cumulative third quarter, selling, general and administrative expenses decreased by ¥317 million from the cumulative period of the same quarter of the previous year despite higher revenue. The company believes that the resulting expense savings will remain effective throughout the year.」
The company thoroughly managed its budget against actual results and reduced selling, general and administrative expenses by ¥317 million year on year despite higher revenue. It states that the expense savings will continue throughout the full fiscal year. - FY2024-Q2AdvancedAnnual report
「During the cumulative second quarter, selling, general and administrative expenses decreased by ¥235 million from the cumulative period of the same quarter of the previous year despite higher revenue. The company believes that the resulting expense savings will remain effective throughout the year.」
Despite higher revenue, the company reduced selling, general and administrative expenses by ¥235 million year on year and strengthened its earnings base through budget-to-actual management and expense reductions. - FY2024-Q1AdvancedAnnual report
「During the cumulative first quarter, selling, general and administrative expenses decreased by ¥138 million from the cumulative period of the same quarter of the previous year despite higher revenue. The company believes that the resulting expense savings will remain effective throughout the year.」
Despite higher revenue, the company reduced selling, general and administrative expenses by ¥138 million year on year. It continues efforts to lower the break-even point through budget-to-actual management and expense reductions. - FY2023AdvancedAnnual report
「During the fiscal year, the cost of sales ratio declined by 3.2 percentage points from the previous fiscal year to 28.2%, owing to fewer purchased products with relatively high cost ratios, the recovery of production volumes toward normal levels and a reduction in inventory valuation losses. However, the substantial impact of a 16.7% decline in revenue from the previous fiscal year reduced gross profit by 12.9%. Selling, general and administrative expenses declined by 9.0% from the previous fiscal year as a result of thorough budget management based on the expense policy.」
The recovery in production and the reduction in valuation losses lowered the cost of sales ratio, and selling, general and administrative expenses were also reduced by 9.0%. However, lower revenue reduced gross profit. - FY2023-Q3AdvancedAnnual report
「In terms of earnings, the return of production volumes to normal levels reduced the cost of sales ratio by 2.1 percentage points from the cumulative period of the same quarter of the previous year. However, the substantial decline in revenue had a significant impact, reducing gross profit by 23.2%. Although the company continued to thoroughly manage selling, general and administrative expenses against the budget based on its expense policy, the impact of lower revenue was substantial, causing the operating and ordinary losses to widen.」
The return of production volumes to normal levels reduced the cost of sales ratio by 2.1 percentage points year on year. However, lower revenue reduced gross profit by 23.2% and widened the operating and ordinary losses. - FY2023-Q2Contained the increase in the cost ratio amid soaring raw material pricesAnnual report
「Amid rising raw material prices due to soaring resource prices and currency fluctuations, the company reviewed its procurement plans for each raw material and limited the increase in the manufacturing cost ratio to a modest rise from the cumulative period of the same quarter of the previous year.」
The company reviewed its procurement plans in response to higher raw material prices caused by resource price increases and currency fluctuations, limiting the increase in the manufacturing cost ratio to a modest rise. - FY2023-Q1AdvancedAnnual report
「In terms of earnings, the cost of sales ratio declined by 2.3 percentage points from the cumulative period of the same quarter of the previous year. As a result of continuing to thoroughly manage the budget against actual results based on its expense policy, selling, general and administrative expenses also remained controlled compared with the same quarter of the previous year, but」
The cost of sales ratio declined by 2.3 percentage points year on year due to production conditions, and selling, general and administrative expenses were also controlled through budget-to-actual management. Due to lower revenue, the overall loss widened slightly. - FY2022AdvancedAnnual report
「During the period, the cost of sales ratio declined by 6.04 percentage points year on year because there were fewer purchased products with relatively high cost ratios and production volumes had recovered to normal levels. Gross profit increased by 13.1% year on year.」
The return of production volumes to normal levels and the lower cost ratio increased gross profit by 13.1% year on year. Budget-to-actual expense management was also conducted within the management indicator range. - FY2022-Q3AdvancedAnnual report
「In terms of earnings, the return of production volumes to normal levels reduced the cost of sales ratio by 13.3 percentage points from the cumulative period of the same quarter of the previous year and increased gross profit by 37.3%. As a result of continuing to thoroughly manage selling, general and administrative expenses against the budget based on its expense policy, the operating loss, ordinary loss and net loss for the quarter improved substantially.」
The recovery in production volumes and budget-to-actual expense management reduced the cost of sales ratio by 13.3 percentage points and increased gross profit by 37.3%. The losses also improved substantially. - FY2022-Q2AdvancedAnnual report
「In terms of earnings, the return of production volumes to normal levels reduced the cost of sales ratio by 13.5 percentage points from the cumulative period of the same quarter of the previous year, while gross profit increased by 45.2%. In addition, the company continued to thoroughly manage selling, general and administrative expenses against the budget based on its expense policy. As a result, operating income, ordinary income and net income all increased from the cumulative period of the same quarter of the previous year.」
The recovery in production volumes and budget-to-actual expense management reduced the cost of sales ratio by 13.5 percentage points and increased gross profit by 45.2%. - FY2022-Q1AdvancedAnnual report
「In terms of earnings, the return of production volumes to normal levels reduced the cost of sales ratio by 5.4 percentage points from the cumulative period of the same quarter of the previous year, increasing gross profit by 7.3%.」
The return of production volumes to normal levels reduced the cost of sales ratio by 5.4 percentage points year on year and increased gross profit by 7.3%. However, higher promotional expenses related to major new products launched this autumn caused the operating and ordinary losses to widen. - FY2021AdvancedAnnual report
「The company continued to thoroughly manage its budget against actual results based on its expense policy. In addition, selling, general and administrative expenses declined by 14.0% from the previous fiscal year due to a review of various sales initiatives and reductions in travel and transportation expenses and entertainment expenses. The company worked to reduce expenses throughout the year.」
The company reduced selling, general and administrative expenses by 14.0% year on year through budget-to-actual management and a review of sales initiatives. - FY2021-Q3AdvancedAnnual report
「During the cumulative third quarter, revenue declined, but selling, general and administrative expenses decreased by ¥422.059 million from the cumulative period of the same quarter of the previous year. The company is working to improve earnings, even if only slightly.」
The company continued to manage expenses based on its expense policy and reduced selling, general and administrative expenses by ¥422.059 million from the cumulative period of the previous year. - FY2021-Q2AdvancedAnnual report
「Selling, general and administrative expenses decreased by 23.6% from the cumulative period of the same quarter of the previous year. However, the cost of sales ratio rose substantially to 35.7% from 23.6% in the cumulative period of the same quarter of the previous year, reflecting an increase in purchased products such as home-use multifunction beauty devices and health foods, as well as lower production volumes at the company's own factory. As a result, the company reported an operating loss and an ordinary loss.」
Selling, general and administrative expenses decreased by 23.6% year on year, while the cost of sales ratio rose to 35.7% due to an increase in purchased products and lower production volumes at the company's own factory, resulting in cost reductions and higher costs occurring simultaneously. - FY2021-Q1AdvancedAnnual report
「In terms of earnings, although the cost of sales increased due to changes in the sales mix and production adjustments, the company decided to refrain this fiscal year from holding its nationwide sales events and other events conducted annually, in order to help prevent the spread of COVID-19. In addition, the company continued to thoroughly manage its budget against actual results based on its expense policy. As a result, selling, general and administrative expenses were reduced by 10.6% from the cumulative period of the same quarter of the previous year, keeping operating income, ordinary income and net income for the quarter at approximately the previous year's levels.」
By refraining from nationwide sales events and managing its budget against actual results, the company reduced selling, general and administrative expenses by 10.6% year on year and contained the deterioration in earnings despite lower revenue. - FY2020-Q3AdvancedAnnual report
「In terms of earnings, the company continued to thoroughly manage its budget against actual results based on its expense policy. As a result, selling, general and administrative expenses were reduced by 10.9% from the cumulative period of the same quarter of the previous year, improving operating income, ordinary income and net income for the quarter.」
The company continued to manage its budget against actual results and reduced selling, general and administrative expenses by 10.9% year on year, improving operating income, ordinary income and net income. - FY2020-Q2AdvancedAnnual report
「In terms of earnings, the company continued to thoroughly manage its budget against actual results based on its expense policy. As a result, selling, general and administrative expenses were reduced by 11.5% from the cumulative period of the same quarter of the previous year, bringing operating income, ordinary income and net income for the quarter into positive territory.」
The company continued to manage its budget against actual results and reduced selling, general and administrative expenses by 11.5% year on year, bringing operating income, ordinary income and net income into positive territory. - FY2020-Q1AdvancedAnnual report
「In terms of earnings, although the cost of sales ratio increased, the company continued to thoroughly manage its budget against actual results based on its expense policy. As a result, selling, general and administrative expenses were reduced by 20.4% from the cumulative period of the same quarter of the previous year, narrowing the operating loss, ordinary loss and net loss for the quarter.」
The company continued to manage its budget against actual results and reduced selling, general and administrative expenses by 20.4% year on year, narrowing its operating, ordinary and net losses. - FY2019AdvancedAnnual report
「Selling, general and administrative expenses were reduced by 26.6% year on year.」
Selling, general and administrative expenses were reduced by 26.6% year on year through the expense policy and cost-effectiveness management. - FY2019-Q2RestatedAnnual report
「In terms of earnings, the company has continued to thoroughly manage budget-to-actual variances based on its expense policy, but」
The company continues to manage budget-to-actual variances based on its expense policy. - FY2019-Q1AdvancedAnnual report
「In terms of earnings, the company thoroughly managed budget-to-actual variances based on its expense policy. As a result, selling, general and administrative expenses were kept within budget and below the level in the same quarter of the previous year, narrowing the losses from operating activities, ordinary activities and net income for the quarter.」
The company thoroughly managed budget-to-actual variances, kept selling, general and administrative expenses within budget and below the previous year's level, and narrowed its losses. - FY2018RestatedAnnual report
「In our operations, we also continued to pursue flexible capital policies, promote product development, continuously reduce manufacturing costs, allocate expenses on a priority basis to promote sales of Red Power Serum and White Power Serum, reduce fixed costs, make effective use of assets, continuously strengthen risk management and compliance, and promote implementation of an ISO quality management system.」
The company continues to implement measures to strengthen its earnings base, including reducing manufacturing costs, curbing fixed costs and making effective use of assets. - FY2017AdvancedAnnual report
「Strong performance by serums reduced the cost-of-sales ratio to 19.6% in the current consolidated fiscal year from 22.5% in the previous consolidated fiscal year. As a result, gross profit was ¥5,358,477 thousand, up 34.0% year on year.」
Lower manufacturing costs and higher serum sales reduced the cost-of-sales ratio from 22.5% to 19.6%. The selling, general and administrative expense ratio also declined from 65.2% to 64.0%. - FY2017-Q2RestatedAnnual report
「In terms of profit, increases in gross profit and continued efforts to reduce selling, general and administrative expenses resulted in year-on-year increases in operating income, ordinary income and net income attributable to owners of the parent.」
The company continues to cite ongoing efforts to reduce selling, general and administrative expenses as a factor behind improved profitability. - FY2016First statedAnnual report
「In our operations, we also actively pursued leverage management, ongoing efforts to reduce manufacturing costs, minimization of fixed costs, effective use of assets, continued strengthening of risk management and compliance, and implementation of an ISO quality management system.」
These measures are presented as efforts to strengthen profitability and the management platform by managing costs, fixed costs, assets and leverage.