Net Profit Driven by Extraordinary Gains from Corporate Separations Despite an Operating Loss
First written in FY2017-Q3. 20 of 26 entries say "Reframed", first in FY2018-Q2. Latest entry: FY2025.
No other company in this theme has enough history to compare yet.
- FY2025ReframedAnnual report
「In terms of earnings, despite a difficult environment marked by surging energy and raw-material prices and higher personnel costs, increased earnings from expanding sales of factory products and progress in reducing costs through the promotion of franchise conversions resulted in operating profit of ¥408 million, up 1.0% year on year, ordinary profit of ¥412 million, up 14.5%, and net profit attributable to owners of the parent of ¥376 million, down 18.5% (the same period of the previous year included ¥134 million in extraordinary income from the sale of land and other assets).」
The results indicate that operating profit and ordinary profit are supported more by expanded sales of factory-produced goods and cost reductions from franchising than by the boost to net income from extraordinary gains such as asset sales. - FY2025-Q1ReframedAnnual report
「In terms of earnings, although distribution and personnel costs rose and raw-material prices increased, the increase in profit accompanying sales growth and the reduction in costs from the promotion of franchise conversions more than offset these factors. Operating profit was ¥106 million, up 27.8% year on year, ordinary profit was ¥107 million, up 110.2%, and quarterly net profit attributable to owners of the parent was ¥84 million, down 44.7% (the previous period included ¥134 million in extraordinary income from the sale of land).」
Operating and ordinary profit improved through sales growth in the core business and lower costs from converting stores to franchises, while net profit declined due to the absence of the ¥134 million extraordinary gain from the sale of land in the prior period. The result combines operating profitability with a decline in extraordinary income. - FY2024ReframedAnnual report
「In terms of earnings, despite difficult conditions including persistently high fuel and utility costs and surging raw-material costs, reductions in costs from franchising stores and higher profit accompanying sales growth more than offset these factors, enabling the Company to exceed its initial profit plan. Operating profit was ¥404 million, up 626.4% year on year, ordinary profit was ¥360 million, up 393.4%, and net profit attributable to owners of the parent was ¥462 million, compared with a net loss attributable to owners of the parent of ¥237 million in the previous year.」
The business shifted from the previous pattern of offsetting operating losses with extraordinary income to a structure in which cost reductions from converting stores to franchises and sales growth generated operating and ordinary profit, while final profit also turned positive. Gains on the sale of fixed assets and investment securities also contributed to final profit. - FY2024-Q2ReframedAnnual report
「The company recognized a gain on the sale of fixed assets of ¥136 million, comprising a ¥134 million gain on the sale of land announced on 30 May 2023 and a ¥2 million gain on the sale of store fixtures, as well as a ¥45 million gain on the sale of investment securities announced on 4 July 2023. As a result, quarterly net income attributable to owners of the parent was ¥306 million, compared with ¥21 million in the prior-year period.」
Final profit of ¥306 million benefited from gains on the sale of land, store fixtures and investment securities. Operating and ordinary profit were also positive, indicating a shift from a structure dependent solely on extraordinary income to one combining operating profitability with gains on asset sales. - FY2024-Q1ReframedAnnual report
「In terms of earnings, despite increases in utility and personnel costs, the recovery in sales progressed, resulting in operating profit of ¥83 million (operating loss of ¥35 million in the same period of the previous year) and ordinary profit of ¥50 million (ordinary loss of ¥31 million). In addition, the Company recorded extraordinary income from the sale of fixed assets (land), resulting in quarterly net profit attributable to owners of the parent of ¥152 million (quarterly net loss attributable to owners of the parent of ¥45 million in the same period of the previous year).」
Although gains on the sale of fixed assets contributed extraordinary income to final profit, operating and ordinary profit also turned positive, marking a shift from improvement in the final result centered on extraordinary income to a structure that includes profitability at the operating level. - FY2023ReframedAnnual report
「In terms of earnings, the effects of business structure reform, including conversion to franchise stores, began to emerge, and as gross profit improved and expenses were reduced, operating income of ¥55 million and ordinary income of ¥73 million were recorded, compared with operating loss of ¥1,099 million and ordinary loss of ¥1,007 million in the previous consolidated fiscal year. However, impairment losses on software and other assets resulted in a net loss attributable to owners of the parent of ¥237 million, compared with a net loss attributable to owners of the parent of ¥518 million in the previous fiscal year.」
Rather than relying on extraordinary income to lift the final result, the company achieved operating and ordinary profitability through structural reforms, gross profit improvement and cost reductions, while impairment losses left a final deficit. - FY2023-Q3ReframedAnnual report
「Structural reforms, including the conversion of stores to franchises, began to bear fruit on the profit side. Progress in gross profit improvement and cost reductions resulted in operating profit of ¥21 million, compared with an operating loss of ¥980 million in the prior-year period, ordinary profit of ¥33 million, compared with an ordinary loss of ¥896 million, and quarterly net income attributable to owners of the parent of ¥22 million, compared with a quarterly net loss attributable to owners of the parent of ¥399 million.」
The result shifted from the previous pattern of reducing final losses or generating final profit through extraordinary income to a structure in which operating and ordinary profit also turned positive through structural reforms, including the conversion of stores to franchises, gross profit improvement and cost reductions. - FY2023-Q2ReframedAnnual report
「Structural reforms began to bear fruit on the profit side. Progress in cost reductions and gross profit improvement resulted in operating profit of ¥2 million, compared with an operating loss of ¥892 million in the prior-year period, and ordinary profit of ¥10 million, compared with an ordinary loss of ¥841 million. In addition, the sale of certain cross-held shares generated a gain on the sale of investment securities of ¥44 million, among other factors, resulting in quarterly net income attributable to owners of the parent of ¥21 million, compared with a quarterly net loss attributable to owners of the parent of ¥577 million.」
Although final profit included a ¥44 million contribution from gains on the sale of investment securities, operating profit of ¥2 million and ordinary profit of ¥10 million were also positive. The focus shifted from the previous pattern of mainly reducing losses through extraordinary income to achieving profitability through structural reforms, cost reductions and gross profit improvement. - FY2023-Q1ReframedAnnual report
「On the profit side, progress in cost reductions and gross profit improvement resulted in an operating loss of ¥35 million, compared with ¥692 million in the prior-year period, an ordinary loss of ¥31 million, compared with ¥668 million, and a quarterly net loss attributable to owners of the parent of ¥45 million, compared with ¥426 million.」
Operating and ordinary losses narrowed through cost reductions and gross profit improvement, rather than through an uplift from extraordinary income. However, the final result remained a loss of ¥45 million, and the company did not return to profitability. - FY2022ReframedAnnual report
「In addition to the mega-franchise agreement fee paid by Lawson, Inc. in connection with the conversion to Lawson-Poplar and Lawson brand stores, and gains on the sale of investment securities and other items recorded as extraordinary income, the company recorded extraordinary losses including business-structure improvement expenses and store closure losses incurred in connection with soliciting early retirements and other measures. As a result, the net loss attributable to owners of the parent was ¥518 million, compared with ¥1,318 million in the prior year.」
Although the mega-franchise agreement fee and gains on the sale of investment securities were recorded as extraordinary income, business-structure improvement expenses and store closure losses were also recognized, resulting in a loss of ¥518 million rather than a return to final profit. - FY2022-Q3ReframedAnnual report
「Gain on sale of investment securities － 169,485 Gain on sale of shares in affiliated companies － 58,196 Mega-franchise agreement fee － 697,142 Other － 1,029 Total extraordinary income 769 926,599」
In addition to the mega-franchise agreement fee, the company recorded a gain on the sale of investment securities of ¥169.485 million and a gain on the sale of Daikokuya Foods shares of ¥58.196 million, broadening the sources of extraordinary income. However, operating and ordinary losses remained, and the final result was a loss of ¥399 million. - FY2022-Q2RestatedAnnual report
「Extraordinary income Gain on sale of property, plant and equipment － Mega-franchise agreement fee 697,142 Other 1,029 Total extraordinary income 698,172」
Although the company recorded extraordinary income of ¥698.172 million, including a mega-franchise agreement fee of ¥697.142 million, operating loss, ordinary loss and final loss remained, continuing this pattern. - FY2022-Q1ReframedAnnual report
「Extraordinary income Mega-franchise agreement fee － 628,571 Other － 1,029 Total extraordinary income － 629,601」
Although the company recorded extraordinary income of ¥629.601 million, including a mega-franchise agreement fee of ¥628.571 million, operating loss of ¥692 million, ordinary loss of ¥668 million and final loss of ¥426 million remained. The result shifted from final profit generated by extraordinary income to a structure in which such income reduced losses. - FY2021RestatedAnnual report
「The company recorded an operating loss of ¥1,125 million, an ordinary loss of ¥1,012 million and a net loss attributable to owners of the parent of ¥1,318 million for the fiscal year.」
Unlike the final profit generated by gains on the sale of shares in affiliated companies in the prior period, the current year included a final loss in addition to operating and ordinary losses, with no final profit generated by extraordinary income. - FY2021-Q3RestatedAnnual report
「Total extraordinary income 769 Total extraordinary losses 146,983 Profit or loss before income taxes △ 843,988 Quarterly net income or quarterly net loss attributable to owners of the parent △ 875,589」
Extraordinary income was limited to ¥769 thousand, while the company recorded an operating loss, an ordinary loss and a final loss of ¥875.589 million. The prior-period pattern of final profit generated by gains on the sale of shares and other items did not continue. - FY2021-Q2RestatedAnnual report
「Ordinary income or ordinary loss 38,625 △ 520,092 Total extraordinary income 1,479,915 269 Quarterly net income or quarterly net loss attributable to owners of the parent 1,476,140 △ 593,139」
Unlike the final profit in the prior-year period, which included extraordinary income, the cumulative consolidated second-quarter period included almost no extraordinary income and continued to reflect ordinary and final losses. - FY2021-Q1ReframedAnnual report
「As a result, chain sales were ¥8,628 million, down 26.6% year on year; operating revenue was ¥5,005 million, down 21.8%; operating loss was ¥343 million, compared with an operating loss of ¥91 million in the same period of the previous year; ordinary loss was ¥324 million, compared with ordinary income of ¥52 million; and quarterly net loss attributable to owners of the parent was ¥346 million, compared with quarterly net income attributable to owners of the parent of ¥1,401 million.」
The final profit generated by gains on the sale of shares in affiliated companies and other items in the first quarter of the prior year did not recur in the current quarter, which included operating and ordinary losses as well as a final loss. - FY2020ReframedAnnual report
「Gain on sale of shares in affiliated companies 1,399,820 Operating loss △ 360,518 Ordinary loss △ 219,447 Net loss attributable to owners of the parent △ 330,327」
Although the company recorded extraordinary income of ¥1,399.820 million from the sale of Lawson San'in shares, operating and ordinary losses remained, and the final result was a loss of ¥330.327 million. Rather than generating final profit through extraordinary income, the result reflects a reduction in losses. - FY2020-Q2RestatedAnnual report
「Gain on sale of shares in affiliated companies 1,399,820」
Although an operating loss remained, the company recorded extraordinary income of ¥1,399 million from gains on the sale of shares in affiliated companies, continuing the pattern of final profit generated by extraordinary income. - FY2020-Q1ReframedAnnual report
「In connection with this sale, the company recognized a gain on the sale of shares in an affiliated company of ¥1,399 million as extraordinary income. As a result, chain sales were ¥11,752 million, down 2.1% year on year; operating revenue was ¥6,398 million, down 2.0%; operating loss was ¥91 million, compared with ¥155 million in the prior-year period; ordinary loss was ¥52 million, compared with ¥122 million; and quarterly net income attributable to owners of the parent was ¥1,401 million, compared with a quarterly net loss attributable to owners of the parent of ¥128 million.」
Although operating and ordinary losses remained, the company recorded final profit of ¥1,401 million due to extraordinary income of ¥1,399 million from the sale of Lawson San'in shares. The result shows a composition of final profit sourced from a share sale, unlike the business separation in the prior year. - FY2019-Q3ReframedAnnual report
「As a result, chain sales were ¥36,486 million, down 6.6% year on year; operating revenue was ¥19,856 million, down 9.5%; operating loss was ¥236 million, compared with an operating loss of ¥287 million in the same period of the previous year; ordinary loss was ¥70 million, compared with an ordinary loss of ¥48 million; and quarterly net loss attributable to owners of the parent was ¥110 million, compared with quarterly net income attributable to owners of the parent of ¥0 million.」
Although the operating deficit narrowed from the prior-year period, the current quarter included an ordinary loss of ¥70 million and a final loss of ¥110 million, with no indication of final profit generated by extraordinary income or other items. - FY2019-Q2ReframedAnnual report
「The company recorded an operating loss of ¥111 million, compared with ¥130 million in the prior-year period, ordinary income of ¥21 million, up 117.2% year on year, and a quarterly net loss attributable to owners of the parent of ¥8 million, compared with quarterly net income attributable to owners of the parent of ¥83 million in the prior-year period.」
Although the operating deficit continued, the company recorded ordinary income of ¥21 million, while final profit turned from profit in the prior-year period to a loss of ¥8 million, producing a result different from the final profit recorded in the prior year. - FY2018ReframedAnnual report
「The company recorded an operating loss of ¥336 million, compared with ¥468 million in the prior-year period, an ordinary loss of ¥82 million, compared with ¥435 million, and a net loss attributable to owners of the parent of ¥70 million for the fiscal year, compared with net income attributable to owners of the parent of ¥289 million in the prior year.」
Although the operating and ordinary deficits narrowed from the prior period, the company moved from final profit in the prior period to final loss in the current period, and the prior year's pattern of final profit generated by extraordinary income did not recur. - FY2018-Q3ReframedAnnual report
「The company recorded an operating loss of ¥287 million, compared with ¥308 million in the prior-year period, an ordinary loss of ¥48 million, compared with ¥293 million, and quarterly net income attributable to owners of the parent of ¥0 million, down 99.9% year on year.」
The operating deficit continued but narrowed from the prior-year period, and the ordinary loss also narrowed. Meanwhile, final profit fell sharply from ¥466 million in the prior-year period, which included extraordinary income, to ¥0 million. - FY2018-Q2ReframedAnnual report
「The company recorded an operating loss of ¥130 million, compared with an operating loss of ¥50 million in the prior-year period, ordinary income of ¥9 million, compared with an ordinary loss of ¥52 million, and quarterly net income attributable to owners of the parent of ¥83 million, compared with a quarterly net loss attributable to owners of the parent of ¥155 million.」
The operating deficit continued and widened, while ordinary income and quarterly net income attributable to owners of the parent returned to positive territory. Unlike the large gain on changes in equity interests associated with the separation of the San'in business in the prior period, this quarter's result included extraordinary income of ¥119.096 million, among other items. - FY2017-Q3First statedAnnual report
「Of total extraordinary income of ¥1,266.065 million, the company recognized ¥404.714 million in received contribution income and ¥844.819 million in gain on changes in equity interests, resulting in quarterly net income attributable to owners of the parent of ¥466 million.」
The company recorded an operating loss of ¥308 million and an ordinary loss of ¥293 million, but recorded quarterly net income attributable to owners of the parent of ¥466 million due to extraordinary income, including a gain on changes in equity interests of ¥844 million associated with the separation of the Lawson San'in business.