Cost Increases Driven by Increased Staffing, Wage Revisions, Higher Raw Material Prices, and Upfront Investment in Overseas Operations
First written in FY2026-H1. 3 of 5 entries say "Advanced", first in 2026-05-13. Latest entry: FY2026.
The whole theme swung hardest in 2020: 6 of 21 companies on the "Worse" side.
1 other company's latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Selling, general and administrative expenses for the consolidated fiscal year amounted to ¥1,509.529 million. Selling, general and administrative expenses also increased due to the impact of business launch costs at the Singapore subsidiary, which is currently the Company's primary focus.」
Expenses increased due to costs associated with launching the Singapore business, increased staffing and wage revisions, and higher raw material prices, resulting in an operating profit margin of 7.2%. The Company described these costs as upfront investment for market development. - FY2026-H1First statedAnnual report
「Cost of sales increased due to higher personnel expenses resulting from increased staffing and wage revisions made in anticipation of future business expansion, as well as rising raw material prices. Selling, general and administrative expenses were also affected by upfront investment related to launching the Singapore business, higher advertising expenses and, similarly, rising personnel expenses. These represent upfront investments in anticipation of future business expansion, and profit margins are expected to improve as earnings scale increases.」
Increased staffing and wage revisions, higher raw material prices, investment in launching the Singapore business and advertising expenses were presented together for the first time as factors driving the increase in expenses. The Company described these as upfront investments for future business expansion and expects profit margins to improve as earnings scale increases.