Earnings Improvement Through SG&A Expense Reduction
First written in FY2017-Q2. 22 of 31 entries say "Softened", first in FY2018. Latest entry: FY2026.
Nomura Micro Science moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2026: 10 of 32 companies on the "Worse" side.
3 other companies' latest entry also says "Softened".
- FY2026Increase in SG&A expenses and higher burden relative to salesAnnual report
「Selling, general and administrative expenses increased from ¥5,738,287 thousand to ¥6,039,567 thousand.」
SG&A expenses increased year on year, while the decline in sales compounded the impact, and no concrete progress in improving earnings through SG&A reductions has been shown. - FY2026-H1SG&A expenses increased, but the ratio to sales declinedAnnual report
「Selling, general and administrative expenses 2,769,491 2,874,887」
SG&A expenses increased from ¥2,769 million in the same period of the previous year to ¥2,875 million. However, significant sales growth lowered SG&A as a percentage of sales from approximately 15.4% to approximately 11.4%, reducing the relative burden on profitability, although not the absolute amount of SG&A expenses. - FY2025-H1SoftenedAnnual report
「Selling, general and administrative expenses 2,186,588 2,769,491」
Selling, general and administrative expenses increased from ¥2,186 million in the same period of the previous year to ¥2,769 million. The increase in SG&A expenses, mainly personnel expenses, coincided with declining revenue and weighed on profit at every level from operating income downward. - FY2024SoftenedAnnual report
「Selling, general and administrative expenses increased from ¥3,822,259 thousand to ¥4,759,359 thousand.」
Although the company has made SG&A reductions a stated objective, current-period SG&A expenses increased year on year, and no concrete progress from the reductions has been shown. - FY2024-Q3SG&A continues to increaseAnnual report
「Selling, general and administrative expenses 2,731,510 3,545,698」
Cumulative SG&A expenses for the first 3 quarters increased from ¥2,731 million in the same period of the previous year to ¥3,545 million, with no concrete progress shown in improving earnings through SG&A reductions. - FY2024-Q2SoftenedAnnual report
「Selling, general and administrative expenses 1,746,747 2,186,588」
Selling, general and administrative expenses increased from ¥1,746 million in the same period of the previous year to ¥2,186 million. Although net sales and operating income increased significantly, the figures for the quarter do not show any concrete progress in improving earnings through SG&A reductions. - FY2024-Q1SoftenedAnnual report
「Selling, general and administrative expenses 843,793 1,052,595」
Selling, general and administrative expenses increased from ¥843 million in the same period of the previous year to ¥1,052 million. Although revenue and operating profit increased, the figures for the quarter show no specific progress in earnings improvement through SG&A expense reductions. - FY2023SoftenedAnnual report
「In terms of profit, gross profit exceeded that of the previous fiscal year due in part to a substantial increase in revenue from water-treatment equipment, absorbing the increase in selling, general and administrative expenses. As a result, operating profit and ordinary profit both exceeded the previous fiscal year.」
Although operating profit increased, selling, general and administrative expenses rose from ¥3,223 million to ¥3,822 million, and no specific progress in earnings improvement through SG&A expense reductions is shown. - FY2023-Q3SoftenedAnnual report
「① Japan Orders for water-treatment equipment from semiconductor-related companies in Japan, South Korea, and China remained firm, while orders for renewal and modification work and maintenance remained firm for maintenance and consumables. Revenue increased 12.8% year on year to ¥14,000 million. However, operating profit declined 50.7% to ¥904 million due in part to the completion by the previous fiscal year of highly profitable large-scale water-treatment equipment projects that had benefited from cost reductions, as well as higher costs for certain water-treatment equipment and increased selling, general and administrative expenses.」
In Japan, revenue increased, but operating profit declined 50.7% year on year due to higher costs for certain equipment and increased selling, general and administrative expenses. No specific progress in earnings improvement through SG&A expense reductions is shown. - FY2023-Q2SoftenedAnnual report
「Due in part to higher costs for certain water-treatment equipment and increased selling, general and administrative expenses, profit at each level from operating profit downward fell below the same period of the previous year.」
Higher selling, general and administrative expenses were a factor in the decline in profit, and no specific progress in earnings improvement through SG&A expense reductions is shown. - FY2023-Q1SoftenedAnnual report
「Due in part to higher costs for certain water-treatment equipment and increased selling, general and administrative expenses, profit at each level from operating profit downward fell below the same period of the previous year.」
SG&A expenses increased, and higher equipment costs also contributed to profit at each level from operating profit downward falling below the same period of the previous year. No specific progress in earnings improvement through SG&A expense reductions is shown. - FY2022SoftenedAnnual report
「In terms of profit, higher maintenance and consumables revenue increased gross profit and more than offset the increase in selling, general and administrative expenses associated with updating core systems and other factors, resulting in operating profit exceeding that of the previous fiscal year.」
Although higher maintenance and consumables revenue absorbed the increase in SG&A expenses, SG&A expenses rose due to the updating of core systems and other factors, and no specific progress in SG&A expense reductions is shown. - FY2022-Q3SoftenedAnnual report
「On the earnings side, gross profit margin declined by 0.4 percentage points year on year due partly to the recognition of sales from certain low-profit projects in China and Taiwan. In addition, selling, general and administrative expenses increased due to higher personnel costs and an upgrade of the core system, causing operating profit to fall below the same period of the previous year. However, profit at each level from ordinary profit downward exceeded the same period of the previous year due partly to foreign exchange gains recorded as non-operating income and the recognition of provision for doubtful accounts as a non-operating expense in the same period of the previous year.」
Selling, general and administrative expenses increased due to higher personnel expenses and the updating of core systems, and operating profit fell below the same period of the previous year. No earnings improvement through SG&A expense reductions was confirmed during the quarter. - FY2022-Q2SoftenedAnnual report
「Selling, general and administrative expenses 1,434,281 1,524,035」
Selling, general and administrative expenses increased from ¥1,434 million in the same period of the previous year to ¥1,524 million, and no reduction results were shown during the quarter for the previously stated earnings improvement through SG&A expense reductions. - FY2021AdvancedAnnual report
「On the earnings side, gross profit increased due to higher water treatment system sales and the completion of low-profit projects. In addition, the decline in selling, general and administrative expenses from the previous period, due partly to teleworking, resulted in a substantial increase in operating profit, with operating margin improving by 4.3 percentage points.」
SG&A expenses declined year on year due in part to teleworking, and the operating margin improved by 4.3 percentage points. - FY2021-Q3AdvancedAnnual report
「On the earnings side, gross profit margin improved by 1.0 percentage point due to higher water treatment system sales and the completion of low-profit projects. In addition, the decline in selling, general and administrative expenses year on year, due partly to teleworking, improved operating margin by 7.2 percentage points.」
Selling, general and administrative expenses declined year on year due in part to teleworking, and the operating margin improved by 7.2 percentage points. Specific results from earnings improvement through SG&A expense reductions continued to be demonstrated. - FY2021-Q2AdvancedAnnual report
「On the earnings side, gross profit margin improved by 2.5 percentage points due to higher water treatment system sales and the completion of low-profit projects. In addition, the decline in selling, general and administrative expenses year on year, due partly to teleworking, improved operating margin by 8.3 percentage points.」
Selling, general and administrative expenses declined year on year due in part to teleworking, and the operating margin improved by 8.3 percentage points. Specific improvement in earnings through SG&A expense reductions was demonstrated, following the previous quarter. - FY2021-Q1AdvancedAnnual report
「On the earnings side, gross profit margin improved by 2.8 percentage points due to higher water treatment system sales and the completion of low-profit projects. In addition, the decline in selling, general and administrative expenses year on year, due partly to teleworking, improved operating margin by 5.6 percentage points.」
Selling, general and administrative expenses declined year on year due in part to teleworking, and the operating margin improved by 5.6 percentage points. Specific improvement in the previously rising SG&A expenses was demonstrated during the quarter. - FY2020SoftenedAnnual report
「Selling, general and administrative expenses increased from ¥3,123 million to ¥3,173 million.」
While SG&A expense reductions had been emphasized, SG&A expenses increased year on year in the current fiscal year. - FY2020-Q3SoftenedAnnual report
「Selling, general and administrative expenses increased from ¥2,278.011 million to ¥2,355.471 million.」
Selling, general and administrative expenses increased year on year, and no specific progress in earnings improvement through SG&A expense reductions is shown. Meanwhile, operating profit increased due to the improvement in the gross profit margin. - FY2020-Q2SoftenedAnnual report
「On the earnings side, gross profit margin improved by 4.7 percentage points year on year due partly to improved margins on water treatment system projects and higher maintenance and consumables sales. However, operating profit declined 3.5% to ¥375 million due to higher selling, general and administrative expenses.」
Although the gross profit margin improved, operating profit declined 3.5% year on year due to higher selling, general and administrative expenses, and no specific progress in earnings improvement through SG&A expense reductions is shown. - FY2020-Q1SoftenedAnnual report
「Although domestic maintenance and consumables remained firm, revenue declined 9.2% year on year to ¥2,322 million due in part to the completion of a large equipment project in China and lower orders for PVDF piping materials in Taiwan. Operating loss was ¥34 million, compared with an operating loss of ¥21 million in the same period of the previous year, due in part to higher SG&A expenses.」
The domestic segment posted an operating loss of ¥34 million due in part to higher SG&A expenses. No specific progress was shown during the quarter on the previously stated measure of earnings improvement through SG&A expense reductions. - FY2019SoftenedAnnual report
「Selling, general and administrative expenses increased 0.8% to ¥3,123 million, mainly due to higher personnel expenses, resulting in operating profit of ¥1,213 million, down ¥26 million year on year.」
While SG&A expense reductions had been emphasized, SG&A expenses increased 0.8%, mainly due to higher personnel expenses, and operating profit declined year on year. - FY2019-Q3SoftenedAnnual report
「Progress on projects to construct ultrapure-water production equipment ordered by pharmaceutical and semiconductor-related companies in Japan and semiconductor- and LCD-related companies in South Korea resulted in revenue of ¥9,595 million, up 17.4% year on year. However, operating profit declined 11.7% to ¥288 million due in part to higher SG&A expenses.」
In Japan, operating profit declined 11.7% year on year due in part to higher SG&A expenses, and no specific progress in earnings improvement through SG&A expense reductions is shown. - FY2019-Q2SoftenedAnnual report
「Selling, general and administrative expenses 1,366,168 1,491,839」
Selling, general and administrative expenses increased from ¥1,366.168 million in the same period of the previous year to ¥1,491.839 million, and no specific progress in earnings improvement through SG&A expense reductions is shown. - FY2019-Q1SoftenedAnnual report
「Selling, general and administrative expenses 676,975 721,078」
Selling, general and administrative expenses increased from ¥676.975 million in the same period of the previous year to ¥721.078 million, and no specific progress in earnings improvement through SG&A expense reductions is shown. - FY2018SoftenedAnnual report
「Selling, general and administrative expenses increased by ¥156 million from the previous consolidated fiscal year to ¥3,099 million, mainly due to higher personnel expenses and other factors.」
While earnings improvement through SG&A expense reductions had previously been indicated, SG&A expenses increased due to personnel expenses and other factors in this filing, and no specific progress on the reduction measures is shown. - FY2018-Q1AdvancedAnnual report
「On the earnings side, gross profit margin improved by 2.8 percentage points due partly to the effect of higher sales and the completion of low-profit projects, while reductions in selling, general and administrative expenses enabled the company to secure operating profit.」
The company continued to reduce selling, general and administrative expenses, improved the gross profit margin by 2.8 percentage points year on year, and secured operating profit of ¥30.1 million. - FY2017AdvancedAnnual report
「The completion of low-margin projects from previous fiscal years improved the profitability of water-treatment equipment, while substantial revenue increases in maintenance and consumables improved the gross profit margin by 3.8 percentage points. In addition, cost reductions at group companies and other factors resulted in higher profit.」
The completion of low-margin projects, improved equipment profitability, higher maintenance and consumables revenue, and cost reductions at group companies improved the gross profit margin by 3.8 percentage points and resulted in higher profit. - FY2017-Q3AdvancedAnnual report
「In terms of profit, the gross profit margin improved 2.0 percentage points year on year, due in part to higher maintenance and consumables revenue. The company also worked to reduce selling, general and administrative expenses through cost reductions and secured operating profit.」
The company reduced selling, general and administrative expenses through cost reductions, improved the gross profit margin by 2.0 percentage points year on year, and secured operating profit. - FY2017-Q2First statedAnnual report
「Although the company focused on reducing selling, general and administrative expenses, lower sales and a decline in gross profit margin resulted in an operating loss. In addition, recording ¥320 million in foreign exchange losses as a non-operating expense resulted in an ordinary loss and a quarterly net loss attributable to owners of the parent.」
The reduction of selling, general and administrative expenses is confirmed for the first time as a standalone earnings-improvement measure in response to declining revenue and a lower gross profit margin.