Earnings Deterioration Due to Medical Device Reimbursement Price Cuts and New Plant Fixed Costs
First written in FY2017-Q1. 13 of 19 entries say "Mitigated", first in FY2018-Q1. Latest entry: FY2025-H1.
The whole theme swung hardest in 2025: 3 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「(Medical devices) As a result of actively promoting sales expansion, sales were ¥2,633 million, up 16.2% year on year. On the profit side, operating profit was ¥226 million, compared with an operating loss of ¥55 million in the previous year, reflecting higher contribution margin from increased sales and the promotion of cost-reduction initiatives.」
Operating profit in the medical device business improved from a ¥55 million loss in the previous year to a ¥226 million profit due to higher revenue and streamlining activities, easing the previous earnings pressure from lower reimbursement prices, fixed costs and other factors at the profit level. - FY2022MitigatedAnnual report
「As a result of actively promoting sales expansion, revenue was ¥4,535 million, up ¥259 million, or 6.1%, from the previous fiscal year. In terms of profit, although expenses related to defects in some products were recognized, operating profit was ¥278 million, up ¥6 million, or 2.2%, mainly due to the effect of higher revenue and the continued promotion of streamlining activities.」
Medical device revenue increased, and operating profit rose 2.2% from the previous fiscal year as streamlining activities continued. The previous earnings pressure from reimbursement prices, fixed costs and other factors is easing at the profit level. - FY2022-Q2MitigatedAnnual report
「As a result of actively promoting sales expansion, sales were ¥2,291 million, up 13.1% year on year. On the profit side, operating profit was ¥201 million, up 98.0% year on year, reflecting the promotion of cost-reduction initiatives and other measures.」
Medical device revenue increased, and operating profit also rose 98.0% year on year due to streamlining activities and other factors. The previous earnings pressure from lower reimbursement prices, fixed costs and other factors is easing further at the profit level. - FY2022-Q1MitigatedAnnual report
「As a result of actively promoting sales expansion, sales were ¥1,064 million, up 4.0% year on year. On the profit side, operating profit was ¥88 million, up 34.5% year on year, reflecting the promotion of cost-reduction initiatives and other measures.」
Medical device revenue increased, and operating profit also rose 34.5% year on year due to streamlining activities and other factors, further easing the previous earnings pressure at the profit level. - FY2021MitigatedAnnual report
「Although we actively promoted sales expansion and the launch of new products, revenue was ¥4,275 million, down ¥64 million, or 1.5%, from the previous fiscal year due to the contraction of sales activities associated with the COVID-19 pandemic and other factors. In terms of profit, operating profit was ¥272 million, up ¥48 million, or 21.6%, mainly due to the promotion of further streamlining activities.」
Medical device revenue declined, while operating profit increased 21.6% due to streamlining activities, easing the earnings pressure from fixed costs and other factors at the profit level. - FY2021-Q3RestatedAnnual report
「Although the company actively promoted sales expansion, sales were ¥3,076 million, down 5.3% year on year, due to the curtailment of sales activities associated with the coronavirus disease and other factors. On the profit side, although cost-reduction initiatives were pursued, operating profit was ¥133 million, down 10.4% year on year, mainly due to a decline in contribution margin resulting from lower sales.」
In the medical device business, the contraction of sales activities due to the infectious disease and the resulting decline in marginal profit continued, while streamlining activities also continued. - FY2020WorsenedAnnual report
「Although we actively promoted sales expansion and the launch of new products, revenue was ¥4,339 million, down ¥56 million, or 1.3%, from the previous fiscal year due to a review of reimbursement prices following the consumption tax increase and inventory adjustments at overseas OEM customers. In terms of profit, operating profit was ¥224 million, down ¥131 million, or 37.0%, mainly due to a decline in product inventories and an increase in fixed manufacturing costs.」
The medical device business reported lower revenue due to the review of reimbursement prices and inventory adjustments at overseas OEM customers, while operating profit also declined 37.0% due to higher fixed manufacturing costs and other factors. - FY2020-Q1MitigatedAnnual report
「(Medical devices) As a result of actively promoting sales expansion, sales were ¥1,085 million, up 12.0% year on year. On the profit side, operating profit was ¥63 million, up 35.5% year on year, reflecting the effect of higher sales and the promotion of cost-reduction initiatives.」
Operating profit from medical devices increased 35.5% year on year due to higher revenue and streamlining activities, and the impact of deteriorating earnings caused by lower reimbursement prices, fixed costs at the new plant and other factors continues to ease. - FY2019MitigatedAnnual report
「As a result of actively promoting sales expansion, revenue was ¥4,396 million, up ¥387 million, or 9.7%, from the previous fiscal year. In terms of profit, operating profit was ¥356 million, up ¥195 million, or 121.9%, mainly due to the effect of higher revenue and the promotion of streamlining activities.」
Operating profit in the medical device business increased substantially due to higher revenue and streamlining activities, further mitigating the impact of deteriorating earnings caused by lower reimbursement prices, fixed costs at the new plant and other factors. - FY2019-Q3MitigatedAnnual report
「(Medical devices) As a result of actively promoting sales expansion, revenue was ¥3,362 million, up 12.9% year on year. On the earnings side, operating profit was ¥266 million, up 109.6% year on year, due to the effect of higher revenue and the promotion of rationalization activities, among other factors.」
Operating profit in the medical device business increased 109.6% year on year due to higher revenue and streamlining activities, and the impact of deteriorating earnings caused by lower reimbursement prices, fixed costs at the new plant and other factors is easing further. - FY2019-Q2MitigatedAnnual report
「As a result of actively promoting sales expansion, revenue was ¥2,154 million, up 15.2% year on year. On the earnings side, operating profit was ¥142 million, compared with an operating loss of ¥1 million in the previous fiscal year, due to the effect of higher revenue and the promotion of rationalization activities, among other factors.」
The medical device business returned to operating profitability due to higher revenue and streamlining activities, and the impact of deteriorating earnings caused by fixed costs at the new plant and other factors is easing further. - FY2019-Q1MitigatedAnnual report
「As a result of actively promoting sales expansion, revenue was ¥968 million, up 10.6% year on year. On the earnings side, operating profit was ¥46 million, compared with an operating loss of ¥4 million in the previous fiscal year, due to the effect of higher revenue and the promotion of rationalization activities, among other factors.」
The medical device business improved from a ¥4 million operating loss in the same period of the previous year to a ¥46 million operating profit, and the impact of deteriorating earnings, including fixed costs at the new plant, is easing. - FY2018-Q3MitigatedAnnual report
「As a result of actively promoting sales of new products and expanding sales, revenue was ¥2,977 million, up 5.1% year on year. On the earnings side, operating profit was ¥127 million, compared with an operating loss of ¥30 million in the previous fiscal year, due to the effect of higher revenue and the promotion of rationalization activities, among other factors.」
Medical device revenue increased 5.1% year on year, while operating profit improved from a ¥30 million loss in the previous year to a ¥127 million profit due to streamlining activities and other measures. The deterioration in earnings caused by fixed costs at the new plant and other factors is easing. - FY2018-Q2MitigatedAnnual report
「Although we actively promoted sales expansion, revenue was ¥1,869 million, down 0.9% from the previous fiscal year, due to delays in some product launches and other factors. In terms of profit, operating loss was ¥1 million, compared with a ¥28 million loss in the previous fiscal year, mainly due to streamlining activities and other measures.」
Medical device revenue continued to decline, but the operating loss narrowed from ¥28 million to ¥1 million due to streamlining activities and other measures. - FY2018-Q1MitigatedAnnual report
「Although we actively promoted sales expansion, revenue was ¥875 million, down 2.7% from the previous fiscal year. In terms of profit, operating loss was ¥4 million, compared with a ¥49 million loss in the previous fiscal year, mainly due to the effect of expense reductions from streamlining and other measures.」
Medical device revenue continued to decline and the business remained loss-making at the operating level, but the operating loss narrowed from ¥49 million to ¥4 million due to the effect of expense reductions from streamlining and other measures. - FY2017WorsenedAnnual report
「Although we actively promoted sales expansion of medical devices, revenue was ¥3,834 million, down ¥3 million, or 0.1%, from the previous fiscal year. In terms of profit, operating profit was ¥21 million, down ¥77 million, or 78.7%, mainly due to increases in fixed costs and depreciation expenses at the new plant built last year.」
The medical device business remained profitable at the operating level, but operating profit fell 78.7% year on year due to higher fixed costs and depreciation expenses at the new plant, and earnings remain under pressure. - FY2017-Q3WorsenedAnnual report
「Although the Group actively promoted sales expansion, revenue was ¥2,833 million, down 1.3% year on year, due to the impact of reductions in reimbursement prices and other factors. In terms of earnings, operating profit was a loss of ¥30 million, compared with profit of ¥137 million in the previous fiscal year, mainly due to higher fixed costs and depreciation expenses at the new plant constructed last year.」
In the medical devices business, revenue fell 1.3% year on year, and the business recorded an operating loss of ¥30 million due to higher fixed costs and depreciation expenses at the new plant and other factors. - FY2017-Q2WorsenedAnnual report
「In terms of earnings, operating profit was a loss of ¥28 million, compared with profit of ¥98 million in the previous fiscal year, mainly due to higher fixed costs and depreciation expenses at the new plant constructed last year.」
In the medical devices business, an operating loss arose against the backdrop of higher fixed costs and depreciation expenses at the new plant, representing a deterioration from the operating profit recorded in the same period of the previous year. - FY2017-Q1First statedAnnual report
「Although we actively promoted sales expansion of new products, revenue was ¥900 million, down 3.8% year on year, due to factors including reductions in reimbursement prices. On the earnings side, operating profit was a loss of ¥49 million, compared with operating profit of ¥67 million in the previous fiscal year, mainly because fixed costs increased at the new plant built last year.」
The report states that lower medical device revenue due to reductions in reimbursement prices and other factors, and a shift to an operating loss due to higher fixed costs at the new plant, actually occurred.