No category-specific facts could be extracted from this document.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Operating profit increased due to higher gross profit and lower selling, general and administrative expenses. The increase in gross profit reflects higher revenue, lower cost of sales and the impact of changes in useful lives. The reduction in selling, general and administrative expenses was attributed to the absence of one-time costs incurred in the previous fiscal year in connection with the unplanned departure of an executive, a review of exhibition participation and lower other expenses. Meanwhile, the Sales Business recorded lower revenue as customers held back on purchases following higher logistics-material prices resulting from the situation in the Middle East. Structural reform costs associated with the transfer of businesses and depot consolidation are also expected.