Profit pressure from higher input prices and personnel expenses
First written in FY2023-Q1. 2 of 5 entries say "Worsened", first in FY2023-Q3. Latest entry: FY2025-H1.
Nagano Keiki moved to the "Worse" side of this theme in 2023, 2 years after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
45 other companies' latest entry also says "Worsened".
- FY2025-H1WorsenedAnnual report
「Expenses were affected by soaring prices for metal materials, electricity and other items.」
The impact of soaring metal material and electricity prices, among others, continued to be seen in the measurement and control equipment and die-casting businesses, leading to operating losses or lower profit in both businesses. - FY2024Cost increases and substantial profit growth coexistAnnual report
「Selling, general and administrative expenses increased by ¥1,323 million from the previous consolidated fiscal year to ¥14,200 million, up 10.3% year on year, due in part to costs associated with relocating the Swiss manufacturing site. Operating profit for the fiscal year under review was ¥7,150 million, up 51.3% year on year.」
While selling, general and administrative expenses increased due to costs associated with relocating the Swiss site and other factors, operating profit rose 51.3% year on year on higher gross profit, so cost increases and one-time expenses coexisted with company-wide profit growth. - FY2023Company-wide profit growth despite higher costsAnnual report
「Against a backdrop of increased demand for capital investment, the Group's results for the fiscal year under review included higher net sales than in the previous fiscal year. Operating profit also exceeded the previous fiscal year, despite the effects of higher labour costs and increased depreciation and amortisation from the introduction of new equipment.」
While higher labour costs, depreciation and amortisation on new equipment, metal material prices and purchase prices due to the weaker yen continued, company-wide operating profit increased 33.0% year on year. - FY2023-Q3Cost increases continue to pressure profits across multiple businessesAnnual report
「Although operating profit was affected by increases in personnel expenses and depreciation and amortization expense resulting from the introduction of new equipment, among other factors, it exceeded the level in the same period of the previous year.」
Across the company, labour costs and depreciation and amortisation were factors weighing on profit. In the die-casting business, higher metal material prices were cited, while in other businesses, the depreciation of the yen increased the purchase prices of foreign-currency-denominated goods. The impact of rising costs extends across multiple businesses. - FY2023-Q1First statedAnnual report
「Against this business backdrop, the group’s first-quarter performance saw revenue increase from the year-earlier period on higher demand for capital investment. However, operating profit, ordinary profit and profit attributable to owners of the parent all fell below the year-earlier period due to higher procurement prices, increased personnel expenses and other factors.」
For the first time, higher purchase prices and increased labour costs were explicitly identified as separate factors behind year-on-year declines in company-wide operating profit, ordinary profit and net profit attributable to owners of the parent for the quarter.