Securing profits by improving the SG&A expense ratio
First written in FY2016-Q2. 17 of 40 entries say "Advanced", first in FY2018-Q2. Latest entry: 2026-09-10.
Top Culture moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2017: 3 of 20 companies on the "Worse" side.
21 other companies' latest entry also says "Advanced".
- 2026-09-10AdvancedFinancial results
「We reviewed the stores' earnings structures through the introduction of new businesses and absorbed the increase in personnel expenses by promoting more efficient store operating procedures.」
The company generated operating profit of ¥133 million by reviewing its earnings structure through new businesses, improving store operating efficiency and controlling SG&A expenses. - FY2026-H1AdvancedAnnual report
「In terms of earnings, the company implemented thorough cost controls and worked to reduce SG&A expenses. However, higher labor costs and increased costs associated with store closures and renovations resulted in operating income of ¥142 million (operating loss of ¥111 million in the previous interim consolidated accounting period) and ordinary income of ¥113 million (ordinary loss of ¥149 million in the previous interim consolidated accounting period).」
The company continued thorough cost controls and SG&A reductions, recovering to operating income of ¥142 million and ordinary income of ¥113 million despite the burden of labor, store closure and renovation costs. - FY2025Existing-store profitability improved, but store closure and renovation costs continuedAnnual report
「Profitability improved at existing stores, but substantial increases in costs associated with store closures and renovations affected earnings.」
Although profitability at existing stores improved, the operating loss continued due to higher costs associated with store closures and renovations. - FY2025-H1The operating loss narrowed, but the net loss widenedAnnual report
「In terms of earnings, the company implemented thorough cost controls and worked to reduce SG&A expenses. However, higher labor costs and increased costs associated with store closures and renovations resulted in an operating loss of ¥111 million (operating loss of ¥162 million in the previous interim consolidated accounting period), an ordinary loss of ¥149 million (ordinary loss of ¥192 million in the previous interim consolidated accounting period), and an interim net loss attributable to owners of the parent of ¥262 million (interim net loss attributable to owners of the parent of ¥218 million in the previous interim consolidated accounting period).」
The company continued reducing SG&A expenses through cost controls, narrowing the operating loss from ¥162 million to ¥111 million, but higher labor, store closure and renovation costs widened the interim net loss attributable to owners of the parent from ¥218 million to ¥262 million. - FY2024The operating loss narrowed despite lower revenue, but losses continuedAnnual report
「As a result, for the consolidated fiscal year, the company posted consolidated revenue of ¥18,414 million (97.2% of the previous year), an operating loss of ¥501 million (operating loss of ¥802 million in the previous fiscal year), an ordinary loss of ¥577 million (ordinary loss of ¥888 million in the previous fiscal year), and a net loss attributable to owners of the parent of ¥717 million (net loss attributable to owners of the parent of ¥1,376 million in the previous fiscal year). Revenue fell below the previous year due to store withdrawals, but each profit figure improved from the previous year.」
Despite lower revenue, the operating loss narrowed from ¥802 million to ¥501 million. However, operating, ordinary and net losses all continued. - FY2024-Q2Continued cost controls, but labor, closure and opening costs kept operations in the redAnnual report
「In terms of earnings, the company implemented thorough cost controls and worked to reduce SG&A expenses. However, higher labor costs, increased costs associated with store closures and upfront costs associated with store openings resulted in an operating loss of ¥162 million (operating loss of ¥166 million in the same quarter of the previous year), an ordinary loss of ¥192 million (ordinary loss of ¥195 million in the same quarter of the previous year), and a net loss attributable to owners of the parent of ¥218 million (net loss attributable to owners of the parent of ¥244 million in the same quarter of the previous year).」
The company continued reducing SG&A expenses, but higher labor costs, store closure costs and upfront store-opening costs kept operations in the red. The operating loss narrowed slightly from the same period of the previous year. - FY2024-Q1Continued efficiency gains, but lower revenue and higher labor costs pushed operations into the redAnnual report
「In terms of earnings, the company worked to reduce SG&A expenses by improving gross margins through the construction of an automated ordering system and thorough product and inventory management, promoting the use of self-checkout registers and further reviewing store operations. However, lower revenue and higher labor costs resulted in an operating loss of ¥31 million (operating income of ¥39 million in the previous year), an ordinary loss of ¥48 million (ordinary income of ¥21 million in the previous year), and a net loss attributable to owners of the parent of ¥56 million (net income attributable to owners of the parent of ¥11 million in the previous year).」
The company continued reducing SG&A expenses through automated ordering, inventory management, self-checkout and a review of store operations, but lower revenue and higher labor costs caused operating income to turn into an operating loss of ¥31 million. - FY2023Continued efficiency gains, but the full-year operating loss widenedAnnual report
「In terms of earnings, the company promoted labor-saving and energy-saving operations across the group, including by promoting the use of self-checkout registers and further reviewing store operations, and worked to reduce SG&A expenses. However, in addition to lower revenue, the surge in fuel prices increased utilities and other costs. Costs associated with store closures and renovations also increased, and the company recorded an impairment loss of ¥430 million on fixed assets as an extraordinary loss. As a result, it posted an operating loss of ¥802 million (operating loss of ¥154 million in the previous year), an ordinary loss of ¥888 million (ordinary loss of ¥187 million in the previous year), and a net loss attributable to owners of the parent of ¥1,376 million (net loss attributable to owners of the parent of ¥272 million in the previous year).」
The company continued self-checkout, reviews of store operations, and labor-saving and energy-saving operations, but the decline in revenue, higher utilities expenses, store closure and renovation costs, and impairment losses widened the operating loss from ¥154 million in the previous year to ¥802 million. - FY2023-Q3Continued efficiency gains, but the operating loss widenedAnnual report
「In terms of earnings, the company worked to reduce SG&A expenses by improving gross margins through the construction of an automated ordering system and thorough product and inventory management, promoting the use of self-checkout registers and further reviewing store operations. However, in addition to lower revenue, the surge in fuel prices increased utilities expenses, resulting in an operating loss of ¥472 million (operating income of ¥109 million in the same quarter of the previous year), an ordinary loss of ¥519 million (ordinary income of ¥95 million in the same quarter of the previous year), and a net loss attributable to owners of the parent of ¥577 million (net income attributable to owners of the parent of ¥43 million in the same quarter of the previous year).」
The company continued efficiency measures through automated ordering, inventory management, self-checkout and a review of store operations, but the decline in revenue and higher utilities expenses widened the operating loss from operating income of ¥109 million in the previous year to ¥472 million. - FY2023-Q2Continued efficiency gains, but higher utilities expenses pushed operations into the redAnnual report
「In terms of earnings, the company worked to reduce SG&A expenses by improving gross margins through the construction of an automated ordering system and thorough product and inventory management, promoting the use of self-checkout registers and further reviewing store operations. However, the surge in fuel prices also increased utilities expenses, resulting in an operating loss of ¥166 million (operating income of ¥55 million in the same quarter of the previous year), an ordinary loss of ¥195 million (ordinary income of ¥53 million in the same quarter of the previous year), and a net loss attributable to owners of the parent of ¥244 million (net income attributable to owners of the parent of ¥19 million in the same quarter of the previous year).」
The company continued efficiency measures through automated ordering, inventory management, self-checkout and a review of store operations, but the impact of higher fuel prices and utilities expenses caused operating income to shift from ¥55 million in the previous year to an operating loss of ¥166 million. - FY2023-Q1Continued efficiency gains, but higher utilities expenses reduced earningsAnnual report
「In terms of earnings, the company worked to reduce SG&A expenses by improving gross margins through the construction of an automated ordering system and thorough product and inventory management, promoting the use of self-checkout registers and further reviewing store operations. However, the surge in fuel prices increased utilities expenses, particularly electricity charges, resulting in operating income of ¥39 million (25.5% of the previous year), ordinary income of ¥21 million (14.7% of the previous year), and net income attributable to owners of the parent of ¥11 million (9.2% of the previous year).」
The company continued efficiency measures through automated ordering, product and inventory management, self-checkout and a review of store operations, but earnings fell below the same period of the previous year due to higher utilities expenses accompanying the surge in fuel prices. - FY2022-Q3RestatedAnnual report
「In terms of earnings, the company worked to reduce SG&A expenses by improving gross margins through the construction of an automated ordering system and thorough product and inventory management, promoting the use of self-checkout registers and further reviewing store operations. However, the surge in various resource prices also increased utilities expenses, resulting in operating income of ¥109 million (operating income of ¥476 million in the same quarter of the previous year) and ordinary income of ¥95 million (ordinary income of ¥403 million in the same quarter of the previous year).」
The company states that it continued efficiency measures through automated ordering, product and inventory management, self-checkout and a review of store operations, while also noting the impact of higher utilities expenses resulting from the surge in resource prices. - FY2022-Q2Continued efficiency gains, but higher resource prices reduced earningsAnnual report
「In terms of earnings, the company worked to reduce SG&A expenses by improving gross margins through the construction of an automated ordering system and thorough product and inventory management, promoting the use of self-checkout registers and further reviewing store operations. However, the surge in various resource prices also increased utilities expenses, resulting in operating income of ¥55 million (operating income of ¥204 million in the same quarter of the previous year), ordinary income of ¥53 million (ordinary income of ¥203 million in the same quarter of the previous year), and net income attributable to owners of the parent of ¥19 million (net income attributable to owners of the parent of ¥157 million in the same quarter of the previous year).」
The company continued reducing SG&A expenses through automated ordering, product and inventory management, self-checkout and a review of store operations, but operating income and other earnings were below the same quarter of the previous year, partly due to higher utilities expenses resulting from the surge in resource prices. - FY2022-Q1AdvancedAnnual report
「In terms of earnings, the company improved gross margins by building an automated ordering system and implementing thorough product and inventory management, while also promoting the use of self-checkout registers and further reviewing store operations. These measures led to lower SG&A expenses, resulting in operating income of ¥153 million (operating income of ¥145 million in the same quarter of the previous year) and ordinary income of ¥149 million (ordinary income of ¥135 million in the same quarter of the previous year).」
The company stated that it advanced the automated ordering system, product and inventory management, self-checkout and the review of store operations, reducing SG&A expenses and raising operating and ordinary income above the same period of the previous year. - FY2021Continued efficiency gains failed to offset the decline in revenue, reducing earningsAnnual report
「In terms of earnings, promoting the use of self-checkout registers and reviewing store operations improved efficiency and led to lower SG&A expenses. However, this was insufficient to close the gap with the previous year's sales, and operating income declined 18.4% year on year to ¥356 million.」
SG&A expenses declined through increased use of self-checkout registers and a review of store operations, but the decline in revenue could not be offset, resulting in operating income of ¥356 million, down 18.4% year on year. - FY2021-Q3AdvancedAnnual report
「In terms of earnings, promoting the use of self-checkout registers and reviewing store operations improved efficiency and led to lower SG&A expenses. As a result, operating income increased 1.1% year on year to ¥476 million.」
SG&A expenses declined through increased use of self-checkout registers and a review of store operations, resulting in operating income of ¥476 million, up 1.1% year on year. - FY2021-Q2Continued efficiency gains failed to offset the decline in revenue, reducing earningsAnnual report
「In terms of earnings, promoting the use of self-checkout registers and reviewing store operations improved efficiency and led to lower SG&A expenses. However, this was insufficient to offset the decline in profit from lower sales, and operating income fell 40.6% year on year to ¥204 million.」
SG&A expenses declined through increased use of self-checkout registers and a review of store operations, but the decline in revenue could not be offset, resulting in a 40.6% year-on-year decrease in operating income. - FY2021-Q1AdvancedAnnual report
「In terms of earnings, promoting the use of self-checkout registers and reviewing store operations improved efficiency and led to lower SG&A expenses. As a result, operating income increased 75.9% year on year to ¥145 million, ordinary income increased 13.3% to ¥135 million, and net income attributable to owners of the parent increased 15.6% to ¥126 million.」
Promoting the use of self-checkout registers and reviewing store operations reduced SG&A expenses, and operating income, ordinary income and net income attributable to owners of the parent all exceeded the same period of the previous year. - FY2020AdvancedAnnual report
「At the same time, as measures to strengthen store operating capabilities and profitability, the company is promoting a review of the sales mix, shorter operating hours and reductions in store operating costs through the introduction of self-checkout registers.」
The company continued to review the sales mix, shorten operating hours and introduce self-checkout registers, increasing operating income to ¥436 million (250.6% of the same period of the previous year). - FY2020-Q3AdvancedAnnual report
「In terms of earnings, growth in sales of the aforementioned core products contributed to a 107.3% year-on-year increase in operating income to ¥470 million. Although the company incurred ¥123 million in fixed costs during store closures and one-time investment-related expenses for future growth, SG&A expenses at closed stores declined, also contributing to improved operating efficiency.」
In addition to higher sales of core products, lower SG&A expenses at closed stores improved operating efficiency, resulting in operating income of ¥470 million, up 107.3% year on year. - FY2020-Q2AdvancedAnnual report
「At the same time, as measures to strengthen store operating capabilities and profitability, the company is promoting a review of the sales mix, shorter operating hours and reductions in store operating costs through the introduction of self-checkout registers.」
The company stated that it reviewed the sales mix, shortened operating hours and reduced store operating costs through the introduction of self-checkout registers, recording operating income of ¥343 million, up 8.2% year on year. - FY2020-Q1Continued SG&A reductions, but store-closure fixed costs cut operating incomeAnnual report
「In terms of earnings, SG&A expenses declined from the previous fiscal year as a result of expanding the introduction and strengthening the operation of self-checkout registers at existing stores, promoting the conversion of store lighting to LEDs and taking other measures. However, fixed costs incurred during the closure of the Higashimatsuyama store affected earnings. Operating income declined 30.5% year on year to ¥82 million, while ordinary income increased 13.7% to ¥119 million.」
SG&A expenses declined through the expansion and strengthened operation of self-checkout registers and the conversion to LEDs, but operating income declined due to fixed costs incurred while the Higashimatsuyama store was closed. - FY2019AdvancedAnnual report
「In terms of earnings, the strengthened introduction of self-checkout registers and the promotion of LED store lighting contributed to reductions in SG&A expenses. In addition, improvements in gross margins on specialty general merchandise, stationery and rental services resulted in operating income of ¥174 million (operating loss of ¥1,132 million in the same period of the previous year) and ordinary income of ¥154 million (ordinary loss of ¥1,199 million in the same period of the previous year).」
Self-checkout, LED conversion and gross-margin improvements drove a full-year recovery from operating and ordinary losses in the previous fiscal year to operating income of ¥174 million and ordinary income of ¥154 million. - FY2019-Q3AdvancedAnnual report
「In terms of earnings, the expanded introduction of self-checkout registers and the promotion of LED store lighting contributed to reductions in SG&A expenses at existing stores. In addition, improvements in gross margins on strong-selling specialty general merchandise and stationery resulted in operating income of ¥227 million (operating loss of ¥874 million in the same quarter of the previous year), ordinary income of ¥220 million (ordinary loss of ¥922 million in the same quarter of the previous year), and net income attributable to owners of the parent of ¥47 million (net loss attributable to owners of the parent of ¥1,401 million in the same quarter of the previous year).」
The company promoted self-checkout, converted store lighting to LEDs and improved gross margins, recovering from operating and ordinary losses in the same period of the previous year to operating income of ¥227 million and ordinary income of ¥220 million. - FY2019-Q2AdvancedAnnual report
「At the same time, as part of measures to strengthen store operating capabilities and profitability, the company reviewed the total number of registers and promoted the introduction of self-checkout registers. As of January 2019, self-checkout registers accounted for 10% of all registers installed in stores, but the ratio had risen to 40% as of the end of April 2019. The company will continue to fundamentally review store operations, including by improving staff work efficiency.」
The self-checkout ratio was raised from 10% as of January 2019 to 40% at the end of April 2019, while store operations were reviewed alongside efforts to improve staff work efficiency. - FY2019-Q1AdvancedAnnual report
「In terms of earnings, revenue and SG&A expenses both increased as the number of stores rose. However, the company significantly reduced SG&A expenses at existing stores by reviewing operating costs and promoting the conversion of store lighting to LEDs, resulting in a lower SG&A ratio. In addition, improvements in gross margins on strong-selling specialty general merchandise and stationery resulted in a 19.6% year-on-year increase in operating income to ¥118 million and a 28.9% increase in ordinary income to ¥104 million.」
The company states that it reviewed operating costs, converted store lighting to LEDs and improved gross margins on specialty general merchandise and stationery, leading to a lower SG&A ratio and higher operating and ordinary income. - FY2018AdvancedAnnual report
「In terms of earnings, although the SG&A ratio declined by 0.6 percentage points, gross profit declined by 12.3 percentage points year on year due to the rise in cost of sales, mainly attributable to higher rental procurement costs. As a result, the company posted an operating loss of ¥1,132 million (operating income of ¥307 million in the same period of the previous year) and an ordinary loss of ¥1,199 million (ordinary income of ¥257 million in the same period of the previous year).」
Although the SG&A ratio declined by 0.6 percentage points, the substantial decline in gross profit due to the rise in cost of sales prevented the company from securing operating and ordinary income. - FY2018-Q3WorsenedAnnual report
「In terms of earnings, revenue increased, driven by new and acquired stores, while SG&A expenses also increased by 0.6% due to the increase in the number of stores. In addition, the rise in cost of sales, mainly due to higher rental procurement costs, resulted in an operating loss of ¥874 million (operating income of ¥121 million in the same quarter of the previous year), an ordinary loss of ¥922 million (ordinary income of ¥85 million in the same quarter of the previous year), and a net loss attributable to owners of the parent of ¥1,401 million (net income attributable to owners of the parent of ¥26 million in the same quarter of the previous year).」
The 0.6% increase in SG&A expenses accompanying the increase in the number of stores and the rise in cost of sales caused earnings to deteriorate from securing profits through the previously improved SG&A ratio to incurring operating, ordinary and net losses. - FY2018-Q2AdvancedAnnual report
「Although the SG&A ratio improved by 0.2 percentage points through reductions in various expenses, including sales promotion expenses and supplies and consumables, the increase in cost of sales, mainly due to higher rental procurement costs, resulted in an operating loss of ¥448 million (operating income of ¥381 million in the same quarter of the previous year).」
The SG&A ratio improved by 0.2 percentage points through reductions in sales promotion expenses, supplies and consumables, and other costs, but the increase in cost of sales prevented the company from securing profits, resulting in an operating loss. - FY2018-Q1WorsenedAnnual report
「Consolidated revenue was 100.3% of the previous year's level, remaining at the same level as in the previous fiscal year, but the SG&A ratio increased by 0.5 percentage points. As a result, operating profit declined 9.1% from the previous fiscal year to ¥99 million, and ordinary profit declined 15.3% year on year to ¥81 million.」
With revenue roughly in line with the same period of the previous year, the SG&A ratio increased by 0.5 percentage points, contributing to declines in operating and ordinary income. - FY2017WorsenedAnnual report
「Operating profit declined 58.7% year on year to ¥307 million, as the SG&A ratio deteriorated by 1.3 percentage points despite the consolidated gross profit margin remaining at the same level as in the previous fiscal year.」
Although the gross profit margin was maintained, the SG&A ratio deteriorated by 1.3 percentage points and operating profit declined 58.7%, representing a further deterioration from the previous situation in which profits were secured through an improved SG&A ratio. - FY2017-Q3WorsenedAnnual report
「On the earnings front, sales declined and the SG&A ratio increased, resulting in operating profit declining 76.2% year on year to ¥121 million and ordinary profit declining 82.0% to ¥85 million.」
The SG&A ratio continued to deteriorate, and the declines in operating and ordinary profit were larger than those reported previously. - FY2017-Q2WorsenedAnnual report
「On the earnings front, the consolidated gross profit margin improved by 0.2 percentage points year on year, but the SG&A ratio deteriorated by 0.9 percentage points. As a result, operating profit declined 26.4% year on year to ¥381 million, ordinary profit declined 26.6% to ¥360 million, and profit attributable to owners of the parent for the quarter declined 23.3% to ¥227 million.」
This differs from the previous disclosures, which stated that profits were secured through an improved SG&A ratio. In the current period, the SG&A ratio deteriorated by 0.9 percentage points and contributed to the decline in operating profit and other profit measures. - FY2017-Q1DroppedAnnual report
「On the earnings front, consolidated revenue declined 2.9% year on year and the consolidated gross profit margin fell 1.5 percentage points, resulting in consolidated gross profit declining 7.4% year on year.」
The disclosure does not state that profits were secured through an improved SG&A ratio this quarter; instead, consolidated gross profit declined due to lower revenue and a lower gross profit margin. - FY2016-Q3RestatedAnnual report
「On the earnings front, the consolidated gross profit margin was at the same level as in the same period of the previous year, but an improved SG&A ratio resulted in operating profit increasing 0.3% year on year to ¥511 million and ordinary profit increasing 4.2% to ¥473 million.」
The company states that operating and ordinary profit increased as a result of an improved SG&A ratio while the gross profit margin remained at the same level. - FY2016-Q2First statedAnnual report
「On the earnings front, the consolidated gross profit margin declined by 0.2 percentage points year on year, but this was offset by an improvement in the SG&A ratio. As a result, operating profit increased 0.4% year on year to ¥518 million, ordinary profit increased 1.7% to ¥491 million, and profit attributable to owners of the parent for the quarter increased 22.1% to ¥296 million.」
The company attributes the increase in profit to earnings management that offset the decline in the gross profit margin through an improved SG&A ratio.