Profit-Structure Reform Aimed at Becoming a Long-Lived Company
First written in FY2020. 8 of 11 entries say "Advanced", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2019: 1 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「1. Business strategy (b) Developing the high-end and urban markets (c) Developing new locations (d) Creating markets for peripheral businesses」
The earnings structure reform was reorganized under “Make Market 2030” as a market-creation strategy combining the high-end and urban markets, new locations, and peripheral businesses such as BtoB and BtoG. - FY2024AdvancedAnnual report
「The gross profit margin recovered substantially as timber prices stabilized and product prices were revised. Although personnel expenses and other selling, general and administrative expenses were restrained, the decline in revenue could not be fully offset because of strategic spending on advertising and other items, resulting in a loss of ¥496 million, compared with a loss of ¥881 million in the same period of the previous year.」
Regarding the earnings structure reform, operating loss narrowed from ¥881 million to ¥496 million through product price revisions, the stabilization of timber prices, and controls on personnel and other selling, general and administrative expenses. However, the company did not achieve operating profitability. - FY2024-Q2AdvancedAnnual report
「Consolidated operating profit was ¥174 million, compared with an operating loss of ¥420 million in the same period of the previous year, due to the recovery in the gross profit margin following the product price revisions implemented in the previous fiscal year.」
Regarding the earnings structure reform, the recovery in the gross profit margin following product price revisions in the previous fiscal year improved operating results for the cumulative second quarter from a loss of ¥420 million to a profit of ¥174 million. - FY2023AdvancedAnnual report
「The company reduced its workforce by 21 employees through its first-ever early retirement program since its founding, relocated its head office, and reduced fixed costs by closing unprofitable sites, Kanazawa and Senshu, at its consolidated subsidiary BESS Partners (hereinafter, “BP”), among other measures. This reduced annualized fixed costs by ¥700 million. In addition, the sale of owned real estate in Tokyo, including the land and building for BESS MAGMA in Daikanyama, generated a gain on sale of ¥4.2 billion and significantly improved the company's financial position.」
The earnings structure reform advanced to specific measures and results, including the retirement of 21 employees through an early retirement program, closure of unprofitable sites, annualized fixed-cost reductions of ¥700 million, and securing a ¥4.2 billion gain on the sale of the Daikanyama assets. - FY2023-Q3AdvancedAnnual report
「As measures to strengthen its management base, the company reduced its workforce by 21 employees through an early retirement program. It decided to relocate the head office in March this year and close the unprofitable BESS Kanazawa site at the end of February this year. It is also proceeding with detailed consideration of ways to strengthen its financial position through the utilization of owned real estate.」
The company implemented and decided on specific measures to strengthen its management base as part of the earnings structure reform, including a 21-person workforce reduction through early retirement, relocation of the head office, the planned closure of the unprofitable BESS Kanazawa site, and consideration of how to utilize owned real estate. - FY2023-Q2AdvancedAnnual report
「The company took measures to improve earnings, including shortening contractual construction periods to mitigate the impact of material price increases after orders are received, changing how prices are presented to customers, revising transaction terms with regional sales companies and promoting cost reductions.」
The earnings structure reform progressed to specific measures, including shortening contractual construction periods, changing the method of presenting prices, revising transaction terms with regional sales companies, and reducing costs. However, it also reported a decline in orders resulting from the change in sales method. - FY2021AdvancedAnnual report
「While addressing challenges including improving the gross profit margin by at least 6 points from the fiscal year ended March 2020, and improving and leveling sales turnover, the company is working to improve its business structure and increase resilience to changes in the external environment.」
For the earnings structure reform, the company set specific targets of improving the gross profit margin by at least 6 points from the fiscal year ended March 2020 and improving and leveling sales turnover. - FY2020First statedAnnual report
「Under the previous medium-term plan, titled “Reforming the Earnings Structure to Build a Long-Lived Company,” the company's brand strength did not translate into profitability, leaving challenges unresolved. Under this medium-term plan, the company will seek to improve profitability through group-wide organizational strength encompassing BESS headquarters and its sales companies, by leveling orders and the timing of construction starts and handovers, improving construction execution and profitability in log construction, and reducing production and logistics costs. It will establish an earnings structure that creates a path toward becoming the long-lived company it seeks to be.」
For the first time, the company explicitly identified reform of the earnings structure as an independent priority measure under the new medium-term management plan, through the leveling of orders, construction starts and handovers, improvements in construction execution and profitability for log construction, and reductions in production and logistics costs.