Improving Operating and Net Profit Margins After Upfront Investment
First written in FY2022. 7 of 16 entries say "Worsened", first in FY2023-Q3. Latest entry: 2026-08-14.
The whole theme swung hardest in 2019: 14 of 100 companies on the "Worse" side.
16 other companies' latest entry also says "Softened".
- FY2026-H1WorsenedAnnual report
「As a result, Group revenue for the current interim consolidated accounting period was ¥3,909,519 thousand, up 3.5% year on year; operating profit was ¥38,985 thousand, down 69.2% year on year; interim profit before tax was ¥104,457 thousand, compared with an interim loss before tax of ¥358,770 thousand in the prior-year period; and interim profit attributable to owners of the parent was ¥52,255 thousand, compared with an interim loss attributable to owners of the parent of ¥253,387 thousand in the prior-year period.」
Operating profit declined from ¥126,397 thousand to ¥38,985 thousand, down 69.2% year on year. Operating profit, interim profit before tax and interim profit attributable to owners of the parent remained positive, but profit amounts contracted. - 2026-03-31Cited as achievedManagement plan
「On a core-business basis excluding these one-off factors, however, improvement toward a profitable model is progressing.」
Although the full-year operating loss remained because of the valuation loss on Chowly shares and other items, improvement in core-business profitability excluding one-off factors was described as an actual result. - FY2025AdvancedAnnual report
「The operating loss was ¥187,539 thousand, compared with an operating loss of ¥10,269,868 thousand in the prior-year period.」
The consolidated operating loss narrowed significantly from ¥10,269,868 thousand to ¥187,539 thousand, and the digital consulting business recorded segment profit of ¥554,795 thousand. However, the consolidated operating loss remained because of the valuation loss on Chowly shares and other items. - FY2025-H1AdvancedAnnual report
「Group revenue for the current interim consolidated accounting period was ¥3,778,949 thousand, down 34.0% year on year, and operating profit was ¥126,397 thousand, compared with an operating loss of ¥6,990,797 thousand in the prior-year period.」
Operating profit turned from a ¥6,990,797 thousand loss in the prior-year period to a ¥126,397 thousand profit. Operating profit generation progressed after the structural reforms, although the interim loss continued because of financial expenses and other items. - FY2024WorsenedAnnual report
「As a result, Group revenue for the current consolidated fiscal year was ¥10,003,292 thousand, down 25.1% year on year; the operating loss was ¥10,269,868 thousand, compared with an operating loss of ¥2,056,729 thousand in the prior-year period; the loss before tax was ¥9,845,766 thousand, compared with a loss before tax of ¥2,156,279 thousand in the prior-year period; and the loss for the year attributable to owners of the parent was ¥9,947,586 thousand, compared with a loss for the year attributable to owners of the parent of ¥2,355,328 thousand in the prior-year period.」
The operating loss widened from ¥2,056,729 thousand to ¥10,269,868 thousand. Although regional performance excluding structural-reform costs and impairment losses improved, consolidated full-year performance deteriorated against the profit-generation and margin-improvement targets. - FY2024-H1WorsenedAnnual report
「As a result, Group revenue for the current interim consolidated accounting period was ¥5,721,416 thousand, down 15.4% year on year; the operating loss was ¥6,990,797 thousand, compared with an operating loss of ¥468,654 thousand in the prior-year period; the interim loss before tax was ¥5,773,852 thousand, compared with interim profit before tax of ¥123,369 thousand in the prior-year period; and the interim loss attributable to owners of the parent was ¥5,894,047 thousand, compared with interim profit attributable to owners of the parent of ¥7,857 thousand in the prior-year period.」
Revenue declined 15.4% year on year and the operating loss was ¥6,990,797 thousand, representing significant deterioration against the profit-generation and margin-improvement targets. - FY2024-Q1WorsenedAnnual report
「Operating profit was an operating loss of ¥891,590 thousand due to lower revenue and higher overseas-site costs resulting from the weaker yen.」
Operating profit turned from a ¥353,487 thousand profit in the prior-year period to an ¥891,590 thousand loss. Lower revenue and higher overseas-site costs due to the weaker yen worsened performance against the profitability target. - FY2023WorsenedAnnual report
「Operating profit was significantly affected by lower first-half revenue and structural-reform costs incurred in the second half to improve profitability, resulting in an operating loss of ¥2,056,729 thousand. Excluding structural-reform costs, the operating loss was ¥1,179,475 thousand.」
Revenue declined 6.5% year on year, the operating loss was ¥2,056,729 thousand and the loss attributable to owners of the parent was ¥2,355,328 thousand. Excluding structural-reform costs, the operating loss showed a gradual recovery from the second quarter. - FY2023-Q3WorsenedAnnual report
「During the first nine months of the current consolidated cumulative period, projects in APAC moved from the strategy phase to the development phase and multiple development-phase projects were won, while large projects were also being secured in EMEA. However, revenue decreased slightly by 0.2% year on year. Operating performance was significantly affected by the recognition of ¥627,424 thousand in one-time structural-reform costs, resulting in an operating loss of ¥1,494,148 thousand.」
Structural-reform costs of ¥627,424 thousand were recognized, increasing the cumulative operating loss to ¥1,494,148 thousand. Cumulative earnings deteriorated against the profit-margin improvement target. - FY2023-Q1RestatedAnnual report
「In the second half, we plan to steadily transition to the profit-generation phase by increasing revenue per client from newly won projects in APAC and improving profitability in EMEA by shifting from outsourcing to employees.」
Although APAC and EMEA faced temporary revenue slowdowns and higher costs, the Company planned to improve second-half profitability by increasing APAC revenue per client and insourcing in EMEA. - FY2022First statedAnnual report
「Going forward, we expect the operating margin to improve as revenue grows because SG&A expenses are expected to increase at a slower rate than revenue.」
The policy is to improve the operating and net profit margins after upfront investment is completed by keeping SG&A growth below revenue growth and turning loss-making sites profitable.