Improving the Earnings Structure by Withdrawing from Low-Priced Products and Offering Voluntary Early Retirement

「In the B2C business, we have been reviewing our product portfolio and clearly shifting it toward the mid- to high-price range with higher added value, while aiming to improve profitability and expand market share.」

「In the BtoC business, we will pursue selectivity and concentration in the product portfolio, clearly shift value-added offerings toward the mid- to high-price ranges, and aim to improve profitability and expand market share.」

「In the BtoC business, we will pursue selectivity and concentration in the product portfolio, clearly shift value-added offerings toward the mid- to high-price ranges, and aim to improve profitability and expand market share.」

「In the general audio equipment business, we continued to pursue higher profitability and restoration of the brand image by strengthening the Reference series of mid- to high-end models and ensuring that new products in every category of distinctive analogue products consistently offered more distinctive value than competing products.」

「General audio equipment under the TEAC brand also saw a temporary decline in sales during the early stages of the COVID-19 pandemic. Thereafter, demand was supported by stay-at-home consumption and teleworking, and sales through e-commerce channels continued to perform particularly well in Japan.」

「General audio equipment under the TEAC brand also saw a temporary decline in sales during the early stages of the COVID-19 pandemic. Thereafter, demand was supported by stay-at-home consumption, and sales through e-commerce channels performed particularly well in Japan. Overseas, however, recovery from the decline in demand caused by the pandemic was delayed. As a result, overall revenue declined, but profit increased due to a higher proportion of domestic sales and a greater mix of high-margin products.」

「General audio equipment under the TEAC brand also saw a significant improvement in its profit margin as the shift toward the Reference category of high-resolution products in the mid- to high-end price range and the full-size component category for recording equipment accelerated. However, exports to Europe and the United States and OEM sales remained weak, resulting in an overall decline in revenue. Continued fixed-cost reductions limited the decline in profit to a slight decrease.」

「For general audio equipment under the TEAC brand, the Reference category of mid- to high-end high-resolution products and the full-size component category for recording equipment lifted profit. However, the turntable category, which is exported mainly to Europe and the United States, performed weakly, resulting in an overall decline in revenue. Profit nevertheless increased through an improved gross profit margin and further fixed-cost reductions.」

「Other full-size component systems, the Reference category and the OEM category for major distributors performed below the previous year, resulting in an overall decline in revenue. However, profit increased due to an improved gross profit margin and further fixed-cost reductions.」

「However, growth in sales of equipment for facilities launched in the previous fiscal year, along with cost-reduction measures such as component standardisation, contributed to an improvement in the gross profit margin.」

「In general audio equipment under the TEAC brand, the Reference series launched in the previous fiscal year and full-size components for recording continued to perform solidly. However, sales of integrated record player systems remained weak compared with the year-earlier period, resulting in lower overall revenue. Profit nevertheless improved and the business returned to profitability, with a significant increase in profit, due to improved gross profit margins from the shift to mid- and high-end models and the benefits of further fixed-cost reductions.」

「General audio equipment (TEAC brand) performed steadily, supported by strong domestic and overseas demand for the Reference series launched in the previous fiscal year and full-size recording-oriented component systems. However, all-in-one record player systems performed weakly compared with the previous fiscal year, resulting in an overall decline in revenue. Profit improved and returned to the black due to an improved gross margin from the shift toward mid- to high-end models and the further reduction of fixed costs.」

「For the fiscal year, revenue was below the year-earlier period. However, operating profit improved year on year despite ¥229 million in costs, including additional retirement allowances, associated with the voluntary retirement program, due to a ¥158 million gain on the settlement of retirement benefit obligations for employees who took voluntary retirement and the benefits of fixed-cost reductions.」

「During the first 3 quarters of the current fiscal year, revenue was below the year-earlier period. However, operating profit improved year on year despite ¥229 million in costs, including additional retirement allowances, associated with the voluntary retirement program, due to a ¥158 million gain on the settlement of retirement benefit obligations for employees who took voluntary retirement and the benefits of fixed-cost reductions.」

「During the first quarter of the current fiscal year, the company solicited applications for voluntary retirement. As a result, 44 people applied, and ¥229 million in costs, including additional retirement allowances, was recognized.」

「For general audio equipment, the company plans to improve its earnings structure by exiting low-priced products to improve margins and reducing fixed costs through a voluntary retirement program, thereby securing ongoing support from its main banks and other parties.」