Losses in the Medical Total Solutions Business Due to Low-Margin Bulk Sales and Replacement Projects
First written in FY2020-Q1. 10 of 24 entries say "Mitigated", first in FY2021-Q1. Latest entry: 2026-08-07.
No other company in this theme has enough history to compare yet.
- FY2026-H1Profit decline due to fewer large, high-margin projectsAnnual report
「During the six months ended the second quarter, sales from bundled medical equipment sales associated with new construction and relocation, restructuring and integration at core medical institutions decreased year on year, but sales increased by ¥138.125 million due to higher sales in other areas. On the earnings side, operating profit decreased by ¥147.809 million year on year, mainly because fewer large, high-margin projects reduced the margin and gross profit.」
Although sales in the business increased due to higher sales outside bundled sales, fewer large, high-margin projects reduced the margin and gross profit, causing operating profit to decrease by ¥147.809 million year on year. - FY2025MitigatedAnnual report
「The number and value of orders for bundled medical equipment sales associated with new construction and relocation, restructuring and integration at medical institutions vary by fiscal year. In the current consolidated fiscal year, sales increased from the previous fiscal year, mainly due to an increase in large projects. Sales of medical information systems also increased, contributing to higher gross profit. In addition, selling, general and administrative expenses decreased from the previous fiscal year, mainly due to lower personnel expenses, resulting in higher operating profit.」
Higher sales from an increase in large projects, higher gross profit and lower personnel expenses, among other factors, improved operating profit in the Medical Total Solution business from ¥94.550 million in the previous fiscal year to ¥307.984 million. - FY2025-H1MitigatedAnnual report
「Sales for the six months ended the second quarter increased by ¥704.164 million year on year, mainly because sales from bundled medical equipment sales associated with new construction and relocation, restructuring and integration at core medical institutions increased year on year. On the earnings side, operating profit increased by ¥133.968 million year on year because gross profit increased with higher sales and selling, general and administrative expenses decreased year on year.」
In the Medical Total Solution business, higher sales from bundled sales and lower SG&A expenses increased operating profit by ¥133.968 million year on year to ¥452.622 million. - FY2024Profit decline due to fewer large projects and higher SG&A expensesAnnual report
「The number and value of orders for bundled medical equipment sales associated with new construction and relocation, restructuring and integration at medical institutions vary by fiscal year. In the current consolidated fiscal year, sales decreased from the previous fiscal year, mainly due to a decline in projects worth ¥1 billion or more.」
The Medical Total Solution business recorded lower sales due to fewer large projects and other large medical equipment and facility projects. Together with higher SG&A expenses, including increased personnel expenses, this caused operating profit to fall 74.5% year on year to ¥94.550 million. - FY2024-Q2MitigatedAnnual report
「Sales for the six months ended the second quarter increased by ¥538.203 million year on year, mainly because sales from bundled medical equipment sales associated with new construction and relocation, restructuring and integration at core medical institutions increased year on year. Although selling, general and administrative expenses increased year on year, the increase in sales led to higher gross profit, resulting in operating profit increasing by ¥99.952 million year on year.」
In the Medical Total Solution business, higher sales from bundled sales increased gross profit, and operating profit increased by ¥99.952 million year on year to ¥318.654 million, up 45.7%. - FY2024-Q1MitigatedAnnual report
「Bundled medical equipment sales associated with new construction and relocation, restructuring and integration at core medical facilities progressed generally as expected, and sales increased by ¥473.561 million year on year. On the earnings side, the increase in sales led to higher gross profit, causing operating profit or loss to improve by ¥151.644 million year on year.」
Bundled sales in the Medical Total Solution business progressed generally as expected, and the business improved from an operating loss of ¥33.696 million in the same period of the previous year to operating profit of ¥117.948 million. - FY2023Profit decline due to lower sales with SG&A expenses unchangedAnnual report
「In the previous fiscal year, the company recorded several projects worth ¥2 billion or more, including strategically accepted orders. In contrast, only 1 project worth ¥2 billion or more was recorded in the current fiscal year, resulting in lower sales and a corresponding decrease in gross profit. In addition, selling, general and administrative expenses remained at the same level as in the previous fiscal year, partly because face-to-face sales activities increased, causing operating profit to decline from the previous fiscal year.」
In the current fiscal year, lower sales and gross profit due to fewer large projects, together with selling, general and administrative expenses remaining at the previous fiscal year's level amid increased face-to-face sales activities, resulted in lower operating profit. - FY2023-Q3RestatedAnnual report
「Selling, general and administrative expenses remained at the same level as in the previous year, partly because face-to-face sales activities increased. Together with the decrease in gross profit resulting from lower sales, this caused operating profit to decline year on year.」
Because selling, general and administrative expenses remained at the same level as in the previous year despite lower sales due to large projects not being recorded, the resulting decrease in gross profit caused operating profit in the Medical Total Solution business to decline year on year. - FY2023-Q2Profit decline due to lower salesAnnual report
「Because selling, general and administrative expenses remained at the same level as in the previous year, operating profit decreased by ¥506.178 million year on year, in addition to the decrease in gross profit resulting from lower sales.」
This time, rather than low-margin projects, lower sales due to delays in the delivery of large projects, together with selling, general and administrative expenses remaining at the previous year's level, caused operating profit in the Medical Total Solution business to decline year on year. - FY2023-Q1Operating loss due to lower salesAnnual report
「Selling, general and administrative expenses remained at the same level as in the previous year. Together with the decrease in gross profit resulting from lower sales, this caused operating profit or loss to decline by ¥533.469 million year on year.」
The company explained that, rather than low-margin projects, lower sales year on year and the resulting decrease in gross profit, while selling, general and administrative expenses remained at the previous year's level, led to the operating loss in the Medical Total Solution business. - FY2022-Q3MitigatedAnnual report
「Operating profit was reduced because the company acquired several large projects worth more than ¥2 billion with slightly lower gross profit margins in the first half, which lowered the overall margin. However, sales and profit were recorded as planned in the third quarter.」
Although low-margin projects worth more than ¥2 billion reduced the overall margin in the first half, both sales and profit were recorded as planned in the third quarter. - FY2022-Q2Profit decline due to low gross margins on large projectsAnnual report
「Operating profit decreased by ¥56.506 million year on year because the company acquired several large projects worth more than ¥2 billion with slightly lower gross profit margins during the current fiscal year, which reduced the overall margin.」
Although the previous disclosure described improved margins through account-development sales, the company this time acquired several large projects worth more than ¥2 billion. Their slightly lower gross profit margins reduced the overall margin, causing operating profit to decrease by ¥56.506 million year on year. - FY2022-Q1MitigatedAnnual report
「Operating profit increased by ¥129.067 million year on year, mainly due to an increase in gross profit resulting from higher sales. As a result, sales for the three months ended the first quarter were ¥10,404.813 million, up 35.3% year on year, and operating profit was ¥499.772 million, up 34.8%.」
The Medical Total Solution business recorded operating profit, with sales up 35.3% and operating profit up 34.8% year on year. Although there was no direct reference to low-margin projects, the business's profit level improved from the same period of the previous year. - FY2021MitigatedAnnual report
「The main reasons for the substantial increase in profit from the previous fiscal year were an increase in gross profit from higher sales and the success of efforts to improve the gross profit margin through stronger account-development sales focused on large projects such as bundled medical equipment sales. In addition, selling, general and administrative expenses remained controlled because sales activities, including customer visits, were restricted. Operating profit consequently increased by ¥346.210 million from the previous fiscal year.」
Improved gross profit margins through account-development sales and control of selling, general and administrative expenses increased operating profit in the Medical Total Solution business by ¥346.210 million year on year to ¥463.856 million. - FY2021-Q3MitigatedAnnual report
「The main reasons for the substantial increase in profit from the same period of the previous year were an increase in gross profit from higher sales and the success of efforts to improve the gross profit margin, including stronger account-development sales focused on large projects such as bundled medical equipment sales. In addition, selling, general and administrative expenses remained controlled because sales activities, including customer visits, were restricted. Operating profit therefore increased by ¥734.159 million year on year.」
In response to low-margin projects, stronger account-development sales improved the gross profit margin and control of selling, general and administrative expenses proved effective. Operating profit in the Medical Total Solution business improved from a loss of ¥42.260 million in the same period of the previous year to profit of ¥691.899 million. - FY2021-Q2MitigatedAnnual report
「The main factors behind the substantial increase in profit compared with the same period of the previous year were an increase in gross profit resulting from higher revenue, and the success of efforts to improve the gross profit margin through stronger in-depth sales efforts not only for large projects such as bundled medical equipment sales, but also for replacement projects and one-off new projects. In addition, selling, general and administrative expenses remained under control, resulting in an operating profit increase of ¥742,844 thousand from the same period of the previous year.」
In response to low-margin projects, stronger account-development sales improved the gross profit margin and control of selling, general and administrative expenses proved effective. Operating profit in the Medical Total Solution business increased from ¥38.542 million in the same period of the previous year to ¥781.387 million. - FY2021-Q1MitigatedAnnual report
「Although large projects such as bundled medical equipment sales remain between major projects, orders for replacement projects and occasional new projects have progressed steadily. In addition, efforts to secure earnings have produced some results, including securing a gross profit margin above the initial assumption through stronger account-development sales for projects in progress.」
To address the gap between large projects and low margins, the company pursued orders for replacement and new projects and strengthened account-development sales, securing a gross profit margin above expectations. The Medical Total Solution business turned from an operating loss of ¥2.704 million in the same period of the previous year to operating profit of ¥370.704 million. - FY2020-Q3Operating loss for the nine-month periodAnnual report
「However, during the current fiscal year, particularly because few projects were recorded as sales in the third quarter and sales from large projects such as bundled medical equipment sales were concentrated in the fourth quarter, the company recorded an operating loss for the nine months ended the third quarter. As a result, sales for the nine months ended the third quarter were ¥14,971.319 million, down 45.6% year on year, and the company recorded an operating loss of ¥42.260 million, compared with operating profit of ¥1,081.578 billion in the same period of the previous year.」
The company had returned to operating profit for the six months ended the second quarter, but recorded an operating loss of ¥42.260 million for the nine months ended the third quarter because sales from large projects were concentrated in the fourth quarter. - FY2020-Q2Return from losses to profitsAnnual report
「Although the order environment remained solid and sales were generally recorded as expected, margins on bundled sales and replacement projects for medical equipment associated with new construction and relocation, restructuring and integration at certain medical institutions were lower than expected because the competitive environment and other factors were more challenging than anticipated. As a result, sales for the six months ended the second quarter were ¥11,831.021 million and operating profit was ¥38.542 million.」
Although the situation of lower margins caused by more challenging-than-expected competition and other factors continued, the company recorded operating profit of ¥38.542 million, rather than an operating loss, for the six months ended the second quarter. - FY2020-Q1First statedAnnual report
「Bundled sales and replacement projects for medical equipment associated with new construction and relocation, restructuring and integration at certain medical institutions became low-margin, preventing the company from securing the profit originally anticipated and resulting in a loss.」
The Medical Total Solution business recorded an operating loss of ¥2.704 million in the first quarter due to low margins on bundled sales, replacement projects and other orders.