Fluctuations in net sales and gross profit margin due to the service mix of each project
First written in FY2019. 6 of 10 entries say "Materialised", first in FY2023. Latest entry: FY2026.
Birdman moved to the "Worse" side of this theme in 2023, 2 years before the typical company in this theme (2025).
The whole theme swung hardest in 2022: 2 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Cost of sales was ¥456.074 million, an increase of ¥155.656 million, or 51.8%, from the previous consolidated fiscal year. Gross loss was ¥161.691 million, compared with gross profit of ¥18.645 million in the previous consolidated fiscal year. This was mainly due to the recognition of ¥137.190 million in provisions for losses on orders to prepare for future losses on contracted engagements.」
The risk of fluctuations in service mix and profitability by engagement was reflected in actual results through the recognition of ¥137.190 million in provisions for losses on orders and the decline from gross profit to gross loss. - FY2024MaterialisedAnnual report
「Cost of sales was a gross loss of ¥447.575 million, compared with gross profit of ¥720.765 million in the previous consolidated fiscal year. This was mainly due to increased costs for initial expenses and maintaining quality, as well as expenses for venues, production and other items associated with holding events being higher than initially expected.」
The increase in costs associated with the engagement and event mix and with maintaining quality was reflected in actual results as a decline from gross profit of ¥720.765 million to a gross loss of ¥447.575 million. - FY2024-Q3MaterialisedAnnual report
「As a result, costs for initial expenses and for maintaining quality increased, resulting in」
It is stated that increased costs associated with the engagement and business mix and with maintaining quality affected actual results, resulting in a gross loss of ¥443.047 million and an operating loss of ¥993.696 million. - FY2023MaterialisedAnnual report
「This was mainly due to outsourcing costs incurred in connection with orders for large-scale engagements and the fact that expenses for venues, production and other items associated with holding hall and arena tours were higher than initially expected.」
The risk of profit-margin fluctuations arising from the service and engagement mix affected actual profits in the form of outsourcing costs for large-scale engagements and tour expenses exceeding expectations. - FY2022RestatedAnnual report
「As a countermeasure against this risk, we conduct sales activities with an emphasis on securing profits and work to structure engagements so that we can secure the targeted gross profit.」
We have reconfirmed the risk of fluctuations in net sales and gross profit margin due to differences in service mix and profitability by engagement, as well as our emphasis on structuring engagements to secure profits. - FY2022-Q1RestatedAnnual report
「Under these circumstances, the Company worked to strengthen its organizational ability to win projects, improve the profitability of individual projects and increase employee productivity.」
We continue to work on improving profitability by engagement as an ongoing issue. - FY2021RestatedAnnual report
「We conduct sales activities with an emphasis on securing profits and work to structure engagements so that we can secure the targeted gross profit.」
We continue to disclose the risk of fluctuations in net sales and gross profit margin due to differences in service mix and profitability by engagement, identifying improved engagement profitability, the introduction of new systems, and reviews of costs, selling expenses, and general and administrative expenses as countermeasures. - FY2019First statedAnnual report
「The company proposes combinations of multiple services with different prices and profit margins according to customer needs, and the services provided and profitability differ for each engagement won.」
The company indicates that the service mix and profitability differ by engagement, which may cause revenue and gross profit margins to deviate from expected levels.