Improving profitability by passing higher costs on to the prices of certain products
First written in FY2024. 2 of 4 entries say "Advanced", first in FY2025-H1. Latest entry: FY2026.
The whole theme swung hardest in 2020: 2 of 17 companies on the "Worse" side.
4 other companies' latest entry also says "Dropped".
- FY2026DroppedAnnual reportThe earnings-improvement measures through price pass-through, fixed-cost reductions and more precise cost control that had been disclosed through the previous fiscal year were not presented as independent measures in the current year's management policy and performance analysis.
- FY2025AdvancedAnnual report
「The Company pursued a combination of active sales activities, revenue growth through price pass-through in response to higher purchase prices and other costs, fixed-cost reductions, and more precise cost control. As a result, it reported operating profit of ¥77 million, ordinary profit of ¥84 million and net profit attributable to owners of the parent of ¥57 million for the current consolidated fiscal year.」
By combining active sales activities, price pass-through, fixed-cost reductions and more precise cost control, the Company reported operating profit of ¥77.79 million, ordinary profit of ¥84.60 million and net profit of ¥57.30 million. - FY2025-H1AdvancedAnnual report
「To resolve the relevant event or circumstances, our Group significantly improved profitability through measures including increasing revenue by passing higher raw material and purchase prices through to the prices of some products sold, reducing executive compensation and management bonuses, reducing fixed costs through appropriate staffing and redeployment, and reducing losses on orders by improving the accuracy of cost management. As a result, we achieved a return to operating profitability in the fourth quarter of the previous consolidated fiscal year and the first half of the current consolidated fiscal year, and business performance is recovering steadily.」
In addition to the effect of price pass-through on selected products, the combination of fixed-cost reductions and more precise cost control led to a return to operating profitability in the current interim period. - FY2024First statedAnnual report
「Revenue increased through price pass-through on selected products in response to higher raw-material and purchase prices, while fixed costs were reduced through cuts in director compensation and management bonuses, as well as workforce optimization and redeployment. Together with a reduction in order-related losses through more precise cost control, these measures significantly improved profitability, resulting in a return to operating profitability in the fourth quarter of the current consolidated fiscal year.」
As a measure to address higher raw-material and purchase prices, the Company implemented price pass-through on selected products and confirmed for the first time that this was an independent theme aimed at improving profitability through higher revenue.