Risk of Additional Investment in the New Business and Delayed Monetization
First written in FY2022. 3 of 6 entries say "Materialised", first in FY2024-H1. Latest entry: FY2026-H1.
Housei moved to the "Worse" side of this theme in 2024, 1 year after the typical company in this theme (2023).
The whole theme swung hardest in 2023: 6 of 12 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「Selling, general and administrative expenses increased by ¥48.243 million year on year, partly due to higher personnel costs resulting from workforce expansion, and operating loss was ¥76.123 million, compared with operating profit of ¥6.561 million in the previous interim period.」
The cost burden of workforce expansion appeared as a ¥48.243 million year-on-year increase in selling, general and administrative expenses, while operating results deteriorated from profit to a ¥76.123 million loss. - FY2025-H1MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥31.213 million year on year, partly due to higher personnel costs resulting from workforce expansion, and operating profit was ¥6.561 million, compared with an operating loss of ¥44.909 million in the previous interim period.」
Costs associated with workforce expansion for new products and services increased selling, general and administrative expenses, while operating results improved from a loss to ¥6.561 million of operating profit. - FY2024-H1MaterialisedAnnual report
「Selling, general and administrative expenses increased by ¥201.250 million year on year due to higher amortization of goodwill associated with aggressive M&A, higher yen-denominated costs of Chinese subsidiaries as the yuan appreciated, and workforce expansion for the sales rollout of new products and services. Operating loss was ¥44.909 million, compared with operating profit of ¥74.337 million in the previous interim period.」
Investment and costs associated with M&A, new products and new services actually increased selling, general and administrative expenses and resulted in an operating loss, showing the risk of margin pressure from additional investment in new businesses. - FY2022First statedAnnual report
「It is expected to take a certain amount of time and investment before new businesses generate stable earnings, which could reduce the overall profit margin.」
For new businesses such as healthcare, additional investment in personnel and information systems, the time required to monetize them and insufficient recovery of investment are disclosed as risks that could reduce profit margins.