Dental profit pressured by a higher sales mix of low-margin products
First written in FY2017-Q3. 9 of 12 entries say "Mitigated", first in FY2017. Latest entry: FY2022-Q3.
No other company in this theme has enough history to compare yet.
- FY2022-Q3MitigatedAnnual report
「Despite the impact of China's lockdowns, sales of diamond burs and other products remained strong in Asia, particularly India, resulting in net sales of ¥6,079 million, up 9.0% year on year. Segment profit (operating profit) was ¥1,888 million, up 5.1% year on year, mainly because net sales increased, among other factors.」
Despite the impact of China's lockdowns, strong sales in Asia resulted in a 9.0% increase in net sales of dental-related products and a 5.1% increase in segment profit. The current explanation does not foreground the previous profit pressure from the low-margin product mix. - FY2022-Q2MitigatedAnnual report
「Segment profit (operating profit) was ¥1,324 million, up 16.5% year on year, mainly because net sales increased, among other factors.」
For dental-related products, segment profit increased 16.5% year on year against the backdrop of higher sales in Asia, with the previous profit pressure factors not becoming apparent. - FY2020MitigatedAnnual report
「The cost of sales ratio improved following the discontinuation of sales of dental operating microscopes and other products and changes in the product mix, with the cost of sales ratio improving 1.6 percentage points from the previous fiscal year to 35.0%.」
The company states that the discontinuation of low-margin products and changes in the product mix improved the company's cost of sales ratio by 1.6 percentage points. - FY2020-Q2RestatedAnnual report
「Segment profit (operating profit) was ¥979 million, up 20.1% year on year, mainly because the proportion of sales from high-margin products increased, among other factors.」
This reconfirms that segment profit for dental-related products increased 20.1% year on year as a result of the higher proportion of sales from high-margin products. - FY2020-Q1MitigatedAnnual report
「Although net sales decreased, segment profit (operating profit) was ¥507 million, down 0.0% year on year, mainly because the proportion of sales from high-margin products increased, among other factors.」
In contrast to the previous profit pressure from a higher proportion of low-margin products, the higher proportion of high-margin products is stated to have enabled segment profit to be maintained despite the decline in sales. - FY2019-Q3MitigatedAnnual report
「Segment profit (operating profit) was ¥1,389 million, up 27.1% year on year, mainly because the cost ratio improved following the transfer of production processes to Vietnam and a review of the production processes, among other factors.」
For dental-related products, the company states that the transfer of production processes to Vietnam and the review of those processes improved the cost ratio and eased profit pressure. - FY2019-Q1MitigatedAnnual report
「Meanwhile, segment profit (operating profit) was ¥508 million, up 21.8% year on year, mainly because sales increased for products whose cost ratios improved as production processes were transferred to Vietnam and the benefits of higher production volumes took effect, among other factors.」
In contrast to the previous period's profit pressure from low-margin products and delays in cost improvement, the current period cites improved cost ratios resulting from the transfer of production processes and higher production volumes, together with a 21.8% increase in segment profit. - FY2018WorsenedAnnual report
「Although net sales increased, segment profit (operating profit) was ¥1,465 million, up 0.2% year on year, mainly because cost improvement initiatives were delayed and sales of the low-margin digital workflow increased, among other factors.」
In addition to delays in cost improvement initiatives, increased sales of the low-margin digital workflow are cited as a new source of profit pressure, leaving profit from dental-related products broadly flat. - FY2018-Q2MitigatedAnnual report
「As distribution reform in the company's Chinese market progressed and sales of reamers and files and diamond burs remained strong, net sales were ¥4,638 million, up 14.6% year on year. Although net sales increased, segment profit (operating profit) was ¥716 million, up 7.4% year on year, because selling, general and administrative expenses increased.」
For dental-related products, sales of key products and segment profit exceeded the same period of the previous year, and the profit pressure from the low-margin product mix noted in the previous period was not reiterated this time. - FY2018-Q1MitigatedAnnual report
「Sales of reamers and files and diamond burs remained strong, resulting in net sales of ¥2,368 million, up 17.9% year on year. Although net sales increased, segment profit (operating profit) was ¥417 million, up 13.7% year on year, mainly because selling, general and administrative expenses increased in line with stepped-up sales activities, among other factors.」
For dental-related products, sales of key products and segment profit exceeded the same period of the previous year, and the profit pressure from the low-margin product mix noted in the previous period was not reiterated this quarter. - FY2017MitigatedAnnual report
「Segment profit (operating profit) was ¥1,463 million, up 10.0% year on year, mainly because sales of high-margin products such as diamond burs and reamers and files remained strong, among other factors.」
In contrast to the previous quarter's disclosure that a higher proportion of low-margin products pressured profit, the current fiscal year features strong sales of high-margin products and an increase in segment profit. - FY2017-Q3First statedAnnual report
「Although net sales increased, segment profit (operating profit) was ¥1,001 million, down 4.9% year on year, mainly because the proportion of sales from low-margin products increased, among other factors.」
For dental-related products, the higher sales mix of low-margin products is cited as a factor behind the decline in segment profit.