Report: Initial Increase in Production Costs Associated with the Expansion of Production Capacity
First written in FY2018-Q3. 9 of 29 entries say "Mitigated", first in FY2021-Q1. Latest entry: 2026-10-15.
MS&Consulting moved to the "Worse" side of this theme in 2023, 4 years after the typical company in this theme (2019).
The whole theme swung hardest in 2019: 7 of 14 companies on the "Worse" side.
11 other companies' latest entry also says "Mitigated".
- 2026-10-15MitigatedRevision of earnings forecasts
「In addition, as profitability-improvement initiatives became established, the cost ratio as a percentage of revenue declined by 5.5 percentage points and the SG&A ratio by 1.6 percentage points from the previous first half. As a result, each profit level from operating profit onward exceeded the previously announced forecast.」
The establishment of profitability-improvement initiatives led to lower cost and SG&A ratios compared with the previous first half. - FY2027-H1MitigatedAnnual report
「On the management side, initiatives to improve profitability have become established. Although depreciation and amortization and other expenses have increased as a result of investments for the future, the cost ratio to revenue decreased by 5.5 percentage points and the SG&A ratio decreased by 1.6 percentage points compared with the first half of the previous fiscal year.」
Although depreciation and amortization and other expenses increased due to investments for the future, the cost ratio and SG&A ratio declined, indicating progress in addressing higher costs. - FY2026MitigatedAnnual report
「Cost of sales was ¥1,718.344 million, down 1.9% from the previous fiscal year. Efforts to achieve the key theme for the fiscal year, improving company-wide profitability, produced results, with progress in containing costs for implemented projects and improving productivity reducing the cost ratio as a percentage of revenue by 2.2 percentage points compared with the previous consolidated fiscal year.」
In response to the higher production and labor-related costs that emerged in the previous fiscal year, cost containment and productivity improvements reduced the cost ratio as a percentage of revenue by 2.2 percentage points. - 2026-05-01MitigatedGeneral Meetings of Shareholders
「Compared with the previous consolidated fiscal year, the cost ratio as a percentage of revenue decreased by 2.2%, while selling, general and administrative expenses decreased by 0.9%.」
Against the risk of higher production costs, lower cost and SG&A ratios were reported in the full-year results. - FY2026-H1MitigatedAnnual report
「Although monitor compensation increased 12.8% in line with the growth in MSR revenue, we pursued the key theme of improving company-wide profitability this fiscal year ... reducing the cost ratio from 74.8% in the first half of the previous fiscal year to 68.9%.」
While monitor compensation increased 12.8% with the growth in MSR revenue, multiple cost-containment measures reduced the cost ratio to 68.9%, demonstrating the results of the response to higher production costs. - FY2025MaterialisedAnnual report
「Cost of sales was ¥1,751.413 million, up 10.1% from the previous fiscal year. It increased due to higher monitor compensation associated with the increase in delivered reports, higher labor costs associated with increased headcount and salary increases, expanded IT-related investment, and a 1.3% increase in outsourced research costs due to growth in overseas research in Southeast Asia.」
Cost of sales increased 10.1% year on year due to higher monitor compensation, labor costs, IT investment, and outsourced overseas research costs. - FY2025-H1MaterialisedAnnual report
「On the administrative side, cost of sales increased 9.6% and selling, general and administrative expenses decreased 0.7% compared with the second consolidated quarter of the previous fiscal year. Cost of sales increased due to higher labor costs associated with increased headcount and salary increases, higher MSR report unit prices, and expanded IT-related investment.」
Cost of sales increased 9.6% year on year due to increased headcount and salary increases, higher MSR report unit prices, and expanded IT-related investment. Higher production and labor-related costs continue to be evident in the results. - FY2025-Q1MaterialisedAnnual report
「On the administrative side, cost of sales increased 22.8% and selling, general and administrative expenses decreased 6.2% compared with the first quarter of the previous fiscal year. Cost of sales increased due to higher labor costs associated with increased headcount and salary increases, higher monitor compensation associated with the increase in MSR reports, and expanded IT-related investment.」
Cost of sales increased 22.8% year on year due to increased headcount and salary increases, growth in the number of MSR reports, and expanded IT-related investment, with higher production costs becoming evident in the results. - FY2024MaterialisedAnnual report
「Cost of sales was ¥1,591.383 million, up 19.8% from the previous fiscal year. It increased due to higher labor costs associated with increased headcount and salary increases, higher monitor compensation, and expanded IT-related investment.」
Full-year cost of sales increased 19.8% year on year due to increased headcount and salary increases, higher monitor compensation, and expanded IT investment. - FY2024-Q3MaterialisedAnnual report
「Cost of sales increased due to higher labor costs associated with increased headcount and salary increases, expanded IT-related investment, and higher monitor compensation.」
Cost of sales in the third-quarter accounting period increased 25.0% year on year, with higher costs from increased headcount and salary increases, IT-related investment, and higher monitor compensation becoming evident in the results. - FY2024-Q2MaterialisedAnnual report
「On the administrative side, cost of sales increased 22.8% and selling, general and administrative expenses decreased 6.0% compared with the second quarter of the previous fiscal year. Cost of sales increased as monitor compensation rose due to the increase in the number of studies and higher prices, in addition to higher labor costs associated with increased headcount and salary increases.」
Cost of sales increased 22.8% year on year due to the increase in the number of studies, higher monitor compensation per study amid inflation, and higher labor costs associated with increased headcount and salary increases. The risk of higher production costs has materialized in the results. - FY2024-Q1MaterialisedAnnual report
「On the administrative side, cost of sales increased 4.3% and selling, general and administrative expenses increased 21.0% compared with the first quarter of the previous fiscal year. Although monitor compensation and outsourcing costs for report production and customer referrals declined with the decrease in the number of studies and revenue, cost of sales increased amid declining revenue due to higher labor costs associated with increased headcount and salary increases, as well as higher rent associated with increased IT investment.」
Amid declining revenue, labor costs rose due to increased headcount and salary increases, and rent increased with IT investment, resulting in a 4.3% year-on-year increase in cost of sales and a 21.0% increase in SG&A expenses. - FY2023-Q3Higher cost of sales and SG&A expenses presented alongside production cost-reduction measuresAnnual report
「On the administrative side, cost of sales increased 16.4% and selling, general and administrative expenses increased 22.2% compared with the cumulative third quarter of the previous fiscal year. Cost of sales increased mainly due to higher monitor compensation associated with the increase in the number of studies and revenue, labor costs associated with earnings recovery, including full payment of salary increases and bonuses (note), and rent associated with increased IT investment, including additional server capacity.」
Cost of sales increased 16.4% year on year due to earnings recovery, growth in the number of studies, salary increases and bonuses, and additional server capacity, while the company also reiterated its policy of reducing costs by smoothing operating levels on the production side. - FY2023-Q2Higher cost of sales accompanying earnings recovery presented alongside a policy to reduce production costsAnnual report
「On the production side, as the number of studies steadily increases, we are working to rebuild a stable and efficient production system while reducing production costs by smoothing operating levels. On the administrative side, cost of sales increased 18.1% and selling, general and administrative expenses increased 22.5% compared with the first half of the previous fiscal year.」
As the number of studies and earnings recovered, cost of sales increased 18.1% year on year, while the company outlined plans to reduce production costs by smoothing operating levels and rebuild the production system. - FY2023-Q1MitigatedAnnual report
「While monitor compensation and outsourcing costs for report production and customer referrals increased with the rise in the number of studies and revenue, cost of sales increased at a rate below revenue growth due to lower labor costs resulting from reduced headcount, the higher proportion of consulting revenue and lower monitor compensation per study.」
The increase in cost of sales associated with higher study volume and revenue was absorbed by lower labor costs from reduced headcount, the higher proportion of consulting revenue and lower monitor compensation per study, keeping the increase below revenue growth. - FY2022MitigatedAnnual report
「While cost of sales increased due to higher monitor compensation and labor costs associated with increases in the number of studies and revenue, higher outsourcing costs for report production and customer referrals, and labor costs resulting from organizational restructuring in preparation for SaaS expansion, the increase remained below the growth in revenue due to the higher proportion of consulting revenue and lower monitor compensation per study.」
Cost of sales increased as the number of studies and revenue recovered, but the increase was kept below revenue growth by the higher proportion of consulting revenue and lower monitor compensation per study. - FY2022-Q1RestatedAnnual report
「For the time being, we will continue seeking to maximize earnings by making effective use of employment adjustment subsidies, as before.」
The policy of using employment adjustment subsidies to address costs associated with fluctuations in production system utilization remains in place. - FY2021-Q2MitigatedAnnual report
「As necessary, we intend to make effective use of employment adjustment subsidies to achieve further production cost reductions following the transition of report production operations to teleworking.」
Following the transition to teleworking, the company outlined additional production cost-reduction measures using employment adjustment subsidies, making its response to the costs of maintaining the production system more concrete. - FY2021-Q1MitigatedAnnual report
「On the production side, the company implemented telework for report production operations. As MSR survey volume gradually stabilizes, this is expected to lead to further production cost controls.」
The company stated that it had implemented teleworking for report production operations, thereby putting concrete measures in place to contain production costs. - FY2020RestatedAnnual report
「On the production side, while working to maintain a stable report production system and control production costs, the company is also working to strengthen relationships with the monitors that support its business in order to further improve report quality.」
Cost-containment initiatives continue to be described as a response to costs associated with maintaining the production system. - FY2020-Q4RestatedAnnual report
「On the production side, while working to maintain a stable report production system and control production costs, the company is also working to strengthen relationships with the monitors that support its business in order to further improve report quality.」
The company continues to describe cost-containment initiatives in response to production costs associated with maintaining the report production system. - FY2020-Q3RestatedAnnual report
「On the production side, while working to maintain a stable report production system and control production costs, the company is also working to strengthen relationships with the monitors that support its business in order to further improve report quality.」
The company continues to describe cost-containment initiatives in response to production costs associated with maintaining the report production system. No specific increase or containment effect is stated. - FY2019RestatedAnnual report
「This was due to higher monitor compensation costs and outsourced report-checking expenses resulting from the increase in the number of MSR studies.」
Higher monitor compensation costs and outsourced report-checking expenses associated with the increase in the number of studies continue to be identified as drivers of production costs. - FY2019-Q4RestatedAnnual report
「On the production side, the company is strengthening its workforce in response to the increase in MSR survey volume, while working to curb the increase in production costs through productivity improvements, including systemization.」
The company continues to describe both increased staffing in response to growth in the number of studies and efforts to contain increases in production costs through productivity improvements. - FY2019-Q3RestatedAnnual report
「On the production side, the company is strengthening its workforce in response to the increase in MSR survey volume, while working to reduce production costs through productivity improvements, including systemization.」
The company continues to describe both increased staffing in response to growth in the number of studies and production cost-reduction measures. This disclosure does not state the amount of the increase in production costs or the reduction achieved. - FY2019-Q2RestatedAnnual report
「On the production side, while continuing to address complex surveys, the company worked to reduce production costs, including by converting costs to variable costs through the expansion of outsourced processes in report production.」
Cost-reduction measures, including converting costs to variable costs by expanding outsourced production processes, continue to address the risk of higher production costs. This disclosure does not state the amount of the increase in production costs or the actual reduction achieved. - FY2018Higher labor costs and cost-reduction measures presented togetherAnnual report
「Although labor costs for report production increased in response to the growth in the number of studies, we worked to reduce production costs by optimizing the automated system that links monitors to research projects, introducing a reverse-auction system, and converting costs to variable costs by expanding outsourced production processes.」
While production labor costs continued to increase with the number of studies, several production cost-reduction measures were also described. - FY2018-Q4WorsenedAnnual report
「In addition to the increase in outsourced production costs, including monitor compensation, associated with MSR growth, labor costs rose as we expanded report-checking personnel in advance to maintain a stable production system. Listing-related expenses also increased, including costs to strengthen the administrative and systems departments and one-time costs associated with the listing.」
In addition to the higher costs associated with expanding the existing report production system, increases in outsourced production costs such as monitor compensation, costs to strengthen the administrative and systems departments, and one-time listing-related costs were identified as drivers of the increase. - FY2018-Q3First statedAnnual report
「In addition to higher listing-related expenses, production costs increased ahead of revenue as we expanded the personnel engaged in report checking and the number of outsourced providers to maintain a stable report production system capable of handling the increase in the number of studies.」
Listing-related expenses and the expansion of the production system caused production costs to increase ahead of revenue during the quarter.