Increase in Fixed Costs Due to New Process Introduction and Wage Increases in Asia
First written in FY2019-Q3. 11 of 16 entries say "Mitigated", first in FY2019. Latest entry: 2026-05-14.
Sanoh Industrial moved to the "Worse" side of this theme in 2026, 9 years after the typical company in this theme (2017).
1 other company's latest entry also says "Materialised".
- 2026-05-14MaterialisedFinancial Results Presentation
「Operating profit declined because personnel expenses increased, although costs were controlled in response to changes in production volumes.」
Higher personnel expenses became an actual fixed-cost burden and a factor behind lower profit in the Asia business. - FY2025MitigatedAnnual report
「In terms of profit, in addition to the increase in profit accompanying higher revenue, cost controls addressing fluctuations in production contributed to operating profit of ¥2.847 billion, up 19.4% from the previous fiscal year.」
Operating profit in Asia increased 19.4% from the previous fiscal year due to cost controls addressing fluctuations in production and the effect of higher revenue. - FY2025-H1MitigatedAnnual report
「In terms of profit, in addition to the increase in profit accompanying higher revenue, cost controls addressing fluctuations in production contributed to operating profit of ¥1.371 billion, up 29.1% year on year.」
Despite a sluggish market and factors driving up costs, operating profit in Asia increased 29.1% year on year due to cost controls addressing fluctuations in production and the effect of higher revenue. - FY2024-Q3MitigatedAnnual report
「In terms of profit, although the segment was affected by soaring material prices, higher labor costs associated with inflation and higher energy costs, the increase in profit accompanying higher revenue offset these effects, resulting in operating profit of ¥1.769 billion, up 18.2% year on year.」
In Asia, the effect of higher revenue offset continuing increases in material, labor and energy costs, and operating profit increased 18.2% year on year. - FY2024-Q2MitigatedAnnual report
「⑤ Asia Net sales increased to ¥13.293 billion, up 11.5% year on year, due to the impact of foreign exchange rates resulting from a weaker yen and stable operations. In terms of profit, although the segment was affected by soaring material prices, higher labor costs associated with inflation and higher energy costs, the increase in profit accompanying higher revenue offset these effects, resulting in operating profit of ¥1.061 billion, up 12.6% year on year.」
Despite higher material, labor and energy costs, operating profit in Asia increased 12.6% year on year due to the effect of higher revenue. - FY2024-Q1RestatedAnnual report
「⑤ Asia Net sales increased to ¥6.848 billion, up 14.2% year on year, due to the impact of foreign exchange rates resulting from a weaker yen and stable operations. However, amid soaring material prices, higher labor costs associated with inflation and higher energy costs, operating profit was ¥702 million, up 0.3% year on year, remaining at approximately the same level as in the same period of the previous year.」
Asia reported higher revenue, but soaring material prices, higher labor costs and higher energy costs restrained profit, leaving operating profit at approximately the same level as in the same period of the previous year. - FY2023-Q3MitigatedAnnual report
「Although costs increased due to soaring material prices and measures to address quality issues, the effect of higher revenue resulted in operating profit of ¥1.497 billion, up 7.3% year on year.」
In Asia, although costs increased due to soaring material prices and measures to address quality issues, the effect of higher revenue lifted operating profit by 7.3% year on year, partially easing the pressure on profit from higher fixed costs and other costs in the reported results. - FY2023-Q2WorsenedAnnual report
「In Asia, net sales increased across the region to ¥11.922 billion, up 30.2% year on year, due to the impact of a weaker yen on translation rates and the recovery of production following the easing of restrictions related to COVID-19. In terms of profit, the increase in fixed costs, including labor costs, placed pressure on the increase in value added from higher revenue, resulting in operating profit of ¥943 million, down 5.9% year on year.」
In Asia, revenue increased due to the recovery of production, but profit declined due to higher labor and other fixed costs, and the pressure on profit from higher fixed costs re-emerged. - FY2022MitigatedAnnual report
「Asia ……The continuing effects of initiatives to reduce fixed costs, including labor costs, also led to a recovery in operating profit to ¥1.851 billion, up 150.2% from the previous fiscal year.」
In Asia, the continuing effects of initiatives to reduce fixed costs eased the pressure on profit from higher labor and other fixed costs in the reported results. - FY2022-Q3MitigatedAnnual report
「The continuing effects of initiatives to reduce fixed costs, including labor costs, resulted in operating profit of ¥1.395 billion, up 597.4% year on year, representing a substantial increase in profit.」
In Asia, the continuing effects of initiatives to reduce fixed costs eased the pressure on profit from higher fixed costs, as reflected in the substantial increase in operating profit. - FY2022-Q2MitigatedAnnual report
「The continuing effects of initiatives to reduce fixed costs, including labor costs, also led to a recovery in operating profit to ¥1.003 billion, compared with an operating loss of ¥87 million in the previous fiscal year.」
In Asia, the continuing effects of initiatives to reduce fixed costs, including labor costs, led to a recovery from an operating loss in the same period of the previous year to an operating profit. - FY2022-Q1MitigatedAnnual report
「The continuing effects of fixed-cost reductions, including labor costs, implemented in the previous fiscal year, together with the effects of structural reforms, resulted in operating profit of ¥554 million, up 113.6% year on year.」
In Asia, the continuing effects of fixed-cost reductions and structural reforms implemented in the previous fiscal year eased the pressure on profit from higher fixed costs in the reported results. - FY2021MitigatedAnnual report
「By the consolidated fourth quarter, sales had recovered to the previous year's level. Together with fixed-cost reductions and the effects of structural reforms, this resulted in operating profit of ¥740 million, down 60.5% year on year, and enabled a turnaround from the operating loss recorded in the cumulative second quarter to an operating profit for the full year.」
Although Asia suffered a substantial decline in revenue due to the infectious disease, the recovery in sales, fixed-cost reductions and the effects of structural reforms led to a turnaround from an operating loss for the cumulative second quarter to an operating profit for the full year. - FY2020-Q1WorsenedAnnual report
「In Asia, sales were largely in line with the same period of the previous year at ¥5,750 million, up 1.8% year on year, as higher sales at the Indian subsidiary offset lower sales resulting from reduced production by customers of the Korean subsidiary. However, operating profit declined to ¥622 million, down 4.5% year on year, due to higher labor and other costs.」
Although Asia reported higher revenue and profit for the full previous fiscal year, operating profit decreased 4.5% in the current quarter due to higher labor and other costs, and the impact of higher fixed costs re-emerged. - FY2019MitigatedAnnual report
「In Asia, primarily due to higher sales to Japanese manufacturers by the Thai subsidiary, net sales increased to ¥22.488 billion, up 9.2% year on year, and operating profit increased to ¥2.305 billion, up 12.4%.」
The impact of higher fixed costs from the introduction of new processes and wage increases, highlighted in the third quarter of the previous fiscal year, was not prominent in the full-year explanation, and Asia reported higher revenue and profit. - FY2019-Q3First statedAnnual report
「Sales to Japanese-affiliated manufacturers, mainly from the Thai subsidiary, increased, resulting in revenue of ¥1,666.5 million, up 9.7% year on year. Operating profit was ¥160.8 million, up 0.2% and approximately unchanged from the previous year, as fixed costs including labor costs increased due to additional staffing for the introduction of a new process in Thailand and higher wages in Indonesia.」
The increase in headcount following the introduction of a new process in Thailand and wage increases in Indonesia appeared in results as higher labor and other fixed costs, becoming a factor that restrained operating profit despite higher revenue in Asia.