Loss of major customers in the retail electricity business
First written in FY2018-Q1. 4 of 11 entries say "Worsened", first in FY2020-Q1. Latest entry: FY2022-Q3.
Watami moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
7 other companies' latest entry also says "Mitigated".
- FY2022-Q3MitigatedAnnual report
「In the environmental business, we mainly operate an electricity retail business. With the acquisition of new customers, revenue was ¥1,686 million (103.1% of the prior-year period), while higher unit procurement costs and other factors resulted in a segment loss of ¥11 million (compared with profit of ¥109 million in the prior-year period).」
Revenue exceeded the year-earlier period due to new customer acquisition, indicating some improvement in the customer-base risks of customer attrition and stagnant new customer acquisition. Profitability, however, deteriorated due to soaring unit purchase prices. - FY2022-Q1MitigatedAnnual report
「In the environmental business, we mainly operate an electricity retail business. With the acquisition of new customers, revenue was ¥456 million (99.5% of the prior-year period) and segment profit was ¥64 million (401.9% of the prior-year period).」
The acquisition of new customers was reported, and segment profit was 401.9% of the year-earlier period. Revenue was 99.5% of the year-earlier period, with responses to customer-base risks and improved profitability both cited. - FY2021-Q1WorsenedAnnual report
「In the environmental business, we mainly operate an electricity retail business. Due to sluggish new-customer acquisition and other factors, revenue was ¥458 million (80.9% of the prior-year period) and segment profit was ¥15 million (39.5% of the prior-year period).」
As sluggish new customer acquisition continued, the environmental business, centred on electricity retail, reported lower revenue and lower profit. The impact of risks relating to the customer base continues. - FY2020WorsenedAnnual report
「The environmental business is centred on the electricity retail business. Despite sluggish new customer acquisition and customer attrition, the Company worked to improve its operating profitability by reviewing its power procurement mix and taking other measures, resulting in lower revenue but higher profit. Accordingly, revenue in the environmental business was ¥2,329 million, or 78.3% of the previous fiscal year, and segment profit was ¥147 million, or 533.8% of the previous fiscal year.」
As the stagnation in new customer acquisition and customer attrition continued, revenue fell to 78.3% of the previous fiscal year. Profit, however, increased following a review of the power procurement mix. - FY2020-Q3RestatedAnnual report
「In the environmental business, we mainly operate an electricity retail business. Despite sluggish new-customer acquisition and the loss of existing customers, a review of the power procurement mix and other measures resulted in profit growth despite lower revenue. Accordingly, revenue was ¥1,769 million (77.1% of the prior-year period) and segment profit was ¥103 million (230.3% of the prior-year period).」
The sluggish acquisition of new customers and customer attrition continue. Profit increased following a review of the power procurement mix, but risks relating to the customer base remain. - FY2020-Q2WorsenedAnnual report
「In the environmental business, we mainly operate an electricity retail business. Despite sluggish new-customer acquisition and the loss of existing customers, a review of the power procurement mix and other measures resulted in profit growth despite lower revenue. Accordingly, revenue was ¥1,201 million (75.7% of the prior-year period) and segment profit was ¥67 million (413.1% of the prior-year period).」
As the acquisition of new customers remained sluggish and customer attrition also occurred, revenue in the environmental business, centred on electricity retail, was 75.7% of the year-earlier period. Profit increased following a review of the power procurement mix, but risks relating to the customer base remain. - FY2020-Q1WorsenedAnnual report
「The environmental business is centred on the electricity retail business. Due to sluggish growth in new customer acquisition and customer attrition, revenue was ¥565 million, or 88.6% of the year-earlier period, and segment profit was ¥40 million, or 84.4% of the year-earlier period.」
As the acquisition of new customers remained sluggish and customer attrition also occurred, the environmental business, centred on electricity retail, reported lower revenue and lower profit. - FY2019-Q2MitigatedAnnual report
「In the environmental business, we mainly operate an electricity retail business. The acquisition of new customers and other factors resulted in revenue of ¥1,585 million (133.9% of the prior-year period) and segment profit of ¥16 million (60.8% of the prior-year period).」
In the electricity retail business following the loss of transactions with a major customer, revenue recovered to 133.9% of the year-earlier period through the acquisition of new customers and other measures. Profit, however, was below the year-earlier period. - FY2018MaterialisedAnnual report
「In the environmental business, we mainly operate an electricity retail business. The termination of transactions with major customers and other factors resulted in revenue of ¥2,286 million (98.1% of the prior fiscal year) and segment profit of ¥38 million (85.4% of the prior fiscal year).」
The loss of transactions with a major customer and other factors actually occurred in the electricity retail business, affecting revenue and segment profit. - FY2018-Q3MaterialisedAnnual report
「Despite the loss of transactions with a major customer, revenue was ¥1,655 million, or 98.5% of the year-earlier period, and segment profit was ¥41 million, compared with a loss of ¥0 million in the year-earlier period, owing in part to the stabilisation of the wholesale electricity trading market.」
The loss of transactions with a major customer actually occurred in the electricity retail business, resulting in revenue of 98.5% of the year-earlier period. Segment profit, however, was ¥41 million. - FY2018-Q1First statedAnnual report
「Despite the loss of major customers, revenue was ¥573 million, or 93.2% of the same period of the previous year, and segment profit was ¥61 million, compared with a ¥10 million loss in the same period of the previous year, due to factors including stability in the wholesale electricity market.」
The company cites the actual loss of major customers in its Environmental Business, which resulted in revenue falling to 93.2% of the same period of the previous year, as a new business risk exposure.