Lower profitability in the Packaging Plant Business due to a higher proportion of third-party products
First written in FY2017-Q1. 19 of 22 entries say "Mitigated", first in FY2017-Q3. Latest entry: FY2026-H1.
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- FY2026-H1MaterialisedAnnual report
「As a result, net sales increased 17.0% year on year to ¥42,177 million. On the earnings front, however, operating income rose only 6.5% to ¥6,524 million, as the cost ratio increased because turnkey orders grew in response to customer needs and the proportion of third-party peripheral equipment incorporated into plant systems increased while the scope of work varied from project to project.」
The cost ratio actually increased as the proportion of third-party products incorporated into plant systems rose, so operating income increased only 6.5% against 17.0% revenue growth. - FY2025MitigatedAnnual report
「Sales in the Packaging Plant business increased from the previous consolidated fiscal year. Although sales of food plants declined as orders for seasoning filling lines decreased, sales of domestic and overseas beverage aseptic filling lines increased. Sales of plants for pharmaceuticals and cosmetics also increased, with higher sales of injectable vial filling lines and cosmetics filling lines.」
The Packaging Plant business generated net sales of ¥80,081 million and operating income of ¥12,574 million, and the previous decline in profitability caused by the rising proportion of third-party products was not prominent in the full-year earnings explanation. - FY2025-H1MitigatedAnnual report
「As a result, net sales increased 26.8% year on year to ¥36,041 million. On the earnings front, operating income increased 53.8% to ¥6,123 million as the higher sales volume led to improved capacity utilization.」
There was no direct mention of lower profitability caused by the rising proportion of third-party products. The Packaging Plant business reported higher revenue and profit, with operating income up 53.8% year on year on improved capacity utilization. - FY2024-Q3MitigatedAnnual report
「As a result, net sales increased 15.8% year on year to ¥45,996 million. On the earnings front, operating income increased 45.9% to ¥7,767 million as the company worked to improve production efficiency.」
The Packaging Plant business reported higher revenue and profit, with operating income up 45.9% year on year on improved production efficiency. The previous decline in profitability caused by the rising proportion of third-party products was not prominent in the current quarter’s explanation. - FY2024-Q2MitigatedAnnual report
「As a result, net sales increased 14.1% year on year to ¥28,417 million. On the earnings front, operating income increased 58.5% to ¥3,982 million as the company worked to improve production efficiency.」
The Packaging Plant business reported higher revenue and profit, with operating income up 58.5% year on year on improved production efficiency. Lower profitability caused by the rising proportion of third-party products was not prominent in the current quarter’s explanation. - FY2024-Q1MitigatedAnnual report
「Sales in the Packaging Plant business increased year on year. Although sales of pharmaceutical and cosmetics plants declined because of lower deliveries of injectable vial filling lines and filling lines for toiletry products such as fabric softener, sales of food plants increased as deliveries of filling lines for domestic seasoning products and aseptic beverage filling lines for domestic and overseas markets rose. As a result, net sales increased 15.6% year on year to ¥12,419 million, and operating income increased 80.9% to ¥1,036 million.」
The Packaging Plant business reported higher revenue and profit, and the previous risk of lower profitability was not prominent in the current quarter’s earnings explanation. - FY2022-Q2MitigatedAnnual report
「Although net sales declined 10.5% year on year to ¥22,586 million, profitability improved as the proportion of the company’s own products in plant systems increased, and operating income was ¥4,398 million, essentially unchanged from the previous year at 0.0%.」
The Packaging Plant business reported lower revenue, but profitability improved as the proportion of the company’s own products increased, keeping operating income at approximately the previous year’s level. - FY2022-Q1MitigatedAnnual report
「Sales in the Packaging Plant business were broadly unchanged year on year. Sales of food plants declined as orders for domestic beverage aseptic filling lines decreased, but sales of plants for alcoholic beverages increased as construction progressed on a large line ordered by a major domestic Western spirits manufacturer against a backdrop of stronger overseas demand. Sales of plants for pharmaceuticals and cosmetics also increased, supported by orders for large lines for filling highly pharmacologically active substances such as anticancer drugs. As a result, net sales increased 0.3% year on year to ¥9,360 million, while operating income increased 42.2% to ¥1,510 million.」
Although there was no direct mention of the proportion of third-party products, large lines for alcoholic beverages and pharmaceuticals offset the decline in food-plant orders. The Packaging Plant business therefore reported a 42.2% increase in operating income despite broadly flat sales. - FY2021MitigatedAnnual report
「Although net sales declined 8.2% year on year to ¥60,004 million, profitability improved as the proportion of the company’s own products in plant systems increased, and operating income rose 9.7% to ¥11,015 million.」
The Packaging Plant business reported lower revenue, but profitability improved as the proportion of the company’s own products increased, resulting in higher operating income. - FY2020MitigatedAnnual report
「Sales of food plants increased from the continued strength of domestic sales and higher deliveries of aseptic beverage filling lines for overseas markets. Sales of plants for pharmaceuticals and cosmetics also increased, supported by deliveries including large vial lines. As a result, net sales increased 2.5% year on year to ¥65,353 million, and operating income increased 1.7% to ¥10,038 million.」
The Packaging Plant business reported higher revenue and profit for the full year, and the previous decline in profitability caused by the rising proportion of third-party products was not prominent in the earnings explanation. - FY2020-Q3MitigatedAnnual report
「As a result, net sales were ¥51,810 million, up 9.1% year on year, and operating income was ¥8,104 million, up 4.3%.」
The Packaging Plant business reported higher revenue and profit, and the risk of lower profitability caused by the rising proportion of third-party products was not prominent in the current quarter’s earnings explanation. - FY2020-Q2MitigatedAnnual report
「As a result, net sales were ¥30,005 million, up 2.0% year on year, and operating income was ¥4,835 million, up 6.0%.」
Although there was no direct mention of the proportion of third-party products, the Packaging Plant business reported higher revenue and profit, and the risk of lower profitability was not prominent in the current quarter’s earnings explanation. - FY2019-Q3MitigatedAnnual report
「As a result, net sales were ¥47,484 million, up 17.6% year on year, and operating income was ¥7,772 million, up 12.5%.」
Although there was no direct mention of lower profitability caused by the rising proportion of third-party products, the Packaging Plant business reported higher revenue and profit for the cumulative third quarter. - FY2019-Q2MitigatedAnnual report
「As a result, consolidated net sales were ¥29,417 million, up 16.3% year on year, and operating income was ¥4,561 million, up 26.6%.」
There was no direct mention of lower profitability caused by the rising proportion of third-party products, and the Packaging Plant business reported higher revenue and profit. - FY2019-Q1MitigatedAnnual report
「As a result, consolidated net sales declined 0.6% year on year to ¥10,493 million. On the earnings front, however, profitability improved as the proportion of the company’s own products in plant systems increased, and operating income rose 34.1% to ¥1,422 million.」
Unlike the previous decline in profitability caused by the rising proportion of third-party products, profitability improved as the proportion of the company’s own products increased, resulting in higher profit in the Packaging Plant business. - FY2018MitigatedAnnual report
「As a result, consolidated net sales were ¥54,389 million, up 4.7% year on year, and operating income was ¥8,530 million, up 12.7%.」
There was no direct mention of lower profitability caused by the rising proportion of third-party products, and the Packaging Plant business reported higher revenue and profit for the full year. - FY2018-Q3MitigatedAnnual report
「As a result, consolidated net sales were ¥40,373 million, up 9.4% year on year, and operating income was ¥6,908 million, up 16.3%.」
There was no direct mention of lower profitability caused by the rising proportion of third-party products, and the Packaging Plant business reported higher revenue and profit for the cumulative third quarter. - FY2018-Q2MitigatedAnnual report
「Sales in the Packaging Plant business increased year on year. Although sales of plants for alcoholic beverages declined, deliveries of food plants to domestic seasoning manufacturers increased for the replacement of aging equipment and consolidation purposes. Deliveries of plants for pharmaceuticals and cosmetics to domestic pharmaceutical manufacturers also increased, including vial and ampoule filling lines. As a result, consolidated net sales increased 15.5% year on year to ¥25,303 million, and operating income increased 41.1% to ¥3,603 million.」
Although there was no direct mention of the proportion of third-party products, the Packaging Plant business reported higher revenue and profit, with operating income up 41.1% year on year. - FY2018-Q1MitigatedAnnual report
「As a result, consolidated net sales were ¥10,552 million, up 35.3% year on year, and operating income was ¥1,060 million, up 328.6%.」
Although there was no direct mention of lower profitability caused by the rising proportion of third-party products, the Packaging Plant business reported higher revenue and profit year on year, and the impact of lower profitability was not prominent in the current quarter’s earnings explanation. - FY2017-Q3MitigatedAnnual report
「As a result, consolidated net sales were ¥36,500 million, up 11.4% year on year, and operating income was ¥6,088 million, up 20.1%.」
Although there was no direct mention of lower profitability caused by the rising proportion of third-party products, the Packaging Plant business reported higher revenue and profit for the cumulative third quarter, and the impact of lower profitability was not prominent. - FY2017-Q2Improved profitabilityAnnual report
「As a result, consolidated net sales were ¥21,708 million, up 11.1% year on year, and operating income was ¥2,675 million, up 22.1%.」
Although there was no direct mention of the proportion of third-party products, the Packaging Plant business reported higher revenue and profit year on year, with operating income increasing. - FY2017-Q1MaterialisedAnnual report
「Sales in the Packaging Plant business increased year on year. Although sales of plants for alcoholic beverages and pharmaceuticals and cosmetics declined, sales of food plants increased substantially because of deliveries of aseptic filling lines for beverages. As a result, consolidated net sales increased 18.8% year on year to ¥7,686 million. On the earnings front, profitability declined as third-party products accounted for a larger proportion of plant systems, and operating income fell 45.6% to ¥331 million.」
Sales increased, but profitability declined as third-party products accounted for a larger proportion of plant systems, resulting in a 45.6% year-on-year decline in operating income.