Revenue and profit declines and the burden of upfront investment in the second quarter of the 33rd fiscal year

「Consolidated revenue for the fiscal year was ¥10,547 million, down 4.0% from the previous fiscal year, due to the impact of longer review periods for building confirmation applications and insufficient orders and contracts in the first half of the fiscal year. In terms of profitability, operating loss was ¥594 million, compared with ¥491 million in the previous year.」

「Net sales declined 4.0% year on year to ¥10,547 million due to the prolonged review period for building confirmation applications and insufficient orders (contracts) in the first half of the fiscal year. The operating loss was ¥594 million, compared with ¥491 million in the previous year.」

「Consolidated revenue for the interim consolidated accounting period was ¥5,361 million, up 1.7% year on year. Operating loss was ¥182 million, compared with ¥248 million in the previous year, helped in part by lower selling, general and administrative expenses than initially expected, broadly in line with the outlook at the beginning of the fiscal year.」

「Against this backdrop, consolidated revenue for the interim consolidated accounting period was ¥5,271 million, down 21.6% year on year, due to an insufficient contract backlog at the end of the previous fiscal year and other factors. The company also recorded an operating loss of ¥248 million, compared with operating profit of ¥174 million in the previous year, due to the impact of lower revenue.」

「Revenue for the fiscal year was ¥12,142 million, down 12.9% year on year, due to insufficient orders in the first half. Operating loss was ¥496 million, compared with a loss of ¥881 million in the previous year. Although gross margin recovered substantially due to stable timber prices and product price revisions, and selling, general and administrative expenses were restrained, strategic investments including advertising expenses prevented the company from offsetting the decline in revenue.」

「Consolidated revenue for the cumulative third quarter fell 10.4% year on year to ¥9,639 million. Although gross margin recovered following product price revisions implemented in the previous fiscal year, consolidated operating profit was ¥99 thousand, compared with a loss of ¥603 million in the previous year, due to marketing investments to strengthen customer acquisition and other factors.」

「Against this backdrop, consolidated revenue for the cumulative second quarter fell 10.1% year on year to ¥6,723 million, but consolidated operating profit was ¥174 million, compared with a loss of ¥420 million in the previous year, due to a recovery in gross margin following product price revisions implemented in the previous fiscal year.」

「Against this backdrop, consolidated revenue for the cumulative first quarter was ¥3,262 million, up 4.6% year on year. Consolidated operating profit was ¥67 million, compared with a loss of ¥473 million in the previous year. Consolidated ordinary profit was ¥62 million, compared with a loss of ¥484 million, and net income attributable to owners of the parent was ¥2,914 million, compared with a loss of ¥487 million.」

「As a result, consolidated revenue for the fiscal year was ¥13,940 million, down 14.7% year on year. Due to the impact of lower revenue, operating loss was ¥881 million, compared with a loss of ¥336 million in the previous year, and ordinary loss was ¥886 million, compared with a loss of ¥362 million. The net loss attributable to owners of the parent was ¥1,338 million, compared with a loss of ¥436 million, also reflecting the recognition of ¥919 million in extraordinary losses related to expenses for measures to strengthen the management base and impairment losses on model-home-center and headquarters assets.」

「Consolidated revenue for the cumulative third quarter was ¥10,755 million, down 10.2% year on year. Consolidated operating loss was ¥603 million, compared with a loss of ¥399 million in the previous year, consolidated ordinary loss was ¥591 million, compared with a loss of ¥424 million, and the quarterly net loss attributable to owners of the parent was ¥613 million, compared with a loss of ¥291 million.」

「As a result, consolidated revenue for the cumulative second quarter was ¥7,481 million, down 9.0% year on year. Consolidated operating loss was ¥420 million, compared with a loss of ¥64 million in the previous year, consolidated ordinary loss was ¥405 million, compared with a loss of ¥81 million, and the quarterly net loss attributable to owners of the parent was ¥415 million, compared with a loss of ¥21 million.」

「Against this backdrop, consolidated revenue for the cumulative first quarter was ¥3,118 million, down 19.0% year on year. Consolidated operating loss was ¥473 million, compared with a loss of ¥89 million in the previous year. Consolidated ordinary loss was ¥484 million, compared with a loss of ¥99 million, and the quarterly net loss attributable to owners of the parent was ¥487 million, compared with a loss of ¥17 million.」

「Consolidated revenue was ¥11,977 million, up 1.0% year on year, but consolidated operating loss was ¥399 million, compared with a loss of ¥311 million in the previous year, consolidated ordinary loss was ¥424 million, compared with a loss of ¥336 million, and the quarterly net loss attributable to owners of the parent was ¥291 million, compared with a loss of ¥349 million.」

「As a result, consolidated revenue for the cumulative second quarter was ¥8,223 million, up 7.9% year on year, but consolidated operating loss was ¥64 million, compared with a loss of ¥379 million in the previous year, consolidated ordinary loss was ¥81 million, compared with a loss of ¥392 million, and the quarterly net loss attributable to owners of the parent was ¥21 million, compared with a loss of ¥331 million.」

「Although consolidated operating loss was ¥89 million, it improved substantially from the ¥421 million loss in the previous year. Consolidated ordinary loss was ¥99 million, compared with a loss of ¥426 million, and the quarterly net loss attributable to owners of the parent was ¥17 million, compared with a loss of ¥325 million.」

「Consolidated revenue for the fiscal year was ¥15,790 million, down 10.4% year on year, despite higher sales at consolidated subsidiary BP. Meanwhile, although initiatives to improve gross margin from the previous fiscal year were beginning to take effect, the decline in revenue described above, together with the recognition of an allowance for doubtful accounts for certain dealers, resulted in consolidated operating loss of ¥252 million, compared with a profit of ¥70 million in the previous year.」

「As a result, consolidated revenue for the cumulative third quarter was ¥11,860 million, down 5.6% year on year, despite higher sales at consolidated subsidiary 株式会社ＢＥＳＳパートナーズ. Meanwhile, due to the decline in revenue described above and other factors, consolidated operating loss was ¥311 million, compared with a loss of ¥199 million in the previous year, consolidated ordinary loss was ¥336 million, compared with a loss of ¥204 million, and the quarterly net loss attributable to owners of the parent was ¥349 million, compared with a loss of ¥223 million.」

「As a result, consolidated revenue for the cumulative second quarter was ¥7,623 million, down 6.5% year on year, despite higher sales at consolidated subsidiary 株式会社ＢＥＳＳパートナーズ. Meanwhile, due to the decline in revenue described above, consolidated operating loss was ¥379 million, compared with a loss of ¥292 million in the previous year, consolidated ordinary loss was ¥392 million, compared with a loss of ¥284 million, and the quarterly net loss attributable to owners of the parent was ¥331 million, compared with a loss of ¥312 million.」

「Against this backdrop, higher sales at 6 locations in the Ibaraki and Tokai areas that newly joined consolidated subsidiary 株式会社ＢＥＳＳパートナーズ in January 2019 contributed to consolidated revenue of ¥3,133 million for the cumulative first quarter, up 3.8% year on year. Meanwhile, consolidated operating loss was ¥421 million, compared with a loss of ¥481 million in the previous year, consolidated ordinary loss was ¥426 million, compared with a loss of ¥494 million, and the quarterly net loss attributable to owners of the parent was ¥325 million, compared with a loss of ¥437 million.」

「Consolidated revenue for the fiscal year rose 42.1% year on year to ¥17,614 million, as contracts at BESS Tama, which opened in the previous fiscal year, and at sales locations transferred from dealers by 株式会社ＢＥＳＳパートナーズ began to contribute to revenue in the current fiscal year, along with initiatives to increase sales turnover through collaboration between headquarters and dealers. In terms of profitability, despite the effects of delays in deliveries stemming from difficulties procuring Canadian timber, an issue carried over from the previous fiscal year, expenses borne by 株式会社ＢＥＳＳパートナーズ for 6 locations of a dealer that had fallen into financial difficulty through businesses unrelated to the BESS business, higher costs during the initial phase of introducing production innovation, and higher material and outsourcing costs, consolidated operating profit was ¥70 million, compared with a loss of ¥635 million in the previous year. Consolidated ordinary profit was ¥74 million, compared with a loss of ¥680 million, and net income attributable to owners of the parent was ¥23 million, compared with a loss of ¥541 million. The company thus returned to profitability.」

「Consolidated revenue for the cumulative third quarter rose 46.2% year on year to ¥12,559 million, due to contracts at BESS Tama, which opened in the previous fiscal year, beginning to contribute to revenue in the current fiscal year, as well as initiatives to increase sales turnover through collaboration between headquarters and dealers. Consolidated operating loss was ¥199 million, compared with a loss of ¥780 million in the previous year, while consolidated ordinary loss was ¥204 million, compared with a loss of ¥780 million.」

「Consolidated revenue for the cumulative second quarter rose 38.7% year on year to ¥8,152 million, due to contracts at BESS Tama, which opened in the previous fiscal year, beginning to contribute to revenue in the current fiscal year, as well as initiatives to increase sales turnover through collaboration between headquarters and dealers. In terms of profitability, the major factors were delays in deliveries stemming from difficulties procuring Canadian timber, an issue carried over from the previous fiscal year, and the impact of front-loaded operating expenses for the 6 locations transferred by BP from a dealer that had fallen into financial difficulty through businesses unrelated to BESS. Consolidated operating loss was ¥212 million, compared with a loss of ¥350 million in the previous year.」

「However, due to delays in revenue progress resulting from longer construction periods and other factors, as well as the burden of front-loaded operating costs for the 6 locations transferred by BP from a dealer that had fallen into financial difficulty in the previous fiscal year, consolidated operating loss was ¥411 million, compared with a loss of ¥368 million in the previous year. Consolidated ordinary loss was ¥424 million, compared with a loss of ¥386 million, and the quarterly net loss attributable to owners of the parent was ¥388 million, compared with a loss of ¥285 million.」

「As a result, consolidated operating loss was ¥635 million, compared with operating profit of ¥453 million in the previous fiscal year. Consolidated ordinary loss was ¥680 million, compared with ordinary profit of ¥455 million, and the net loss attributable to owners of the parent was ¥541 million, compared with net income attributable to owners of the parent of ¥364 million.」

「In terms of profitability, expenses for front-loaded investments to achieve the medium-term management plan increased, including advertising and sales promotion expenses to increase visitors to model-home centers, higher personnel expenses and other costs from expanding staff at BESS Tama, and system development for the operation of the BH production system, in addition to the decline in gross profit accompanying lower revenue. There were also costs associated with the transfer of some dealer locations by consolidated subsidiary 株式会社ＢＥＳＳパートナーズ (hereinafter, BP). As a result, consolidated operating loss was ¥780 million, down ¥864 million year on year, consolidated ordinary loss was ¥780 million, down ¥881 million, and the quarterly net loss attributable to owners of the parent was ¥536 million, down ¥633 million.」

「Consolidated revenue for the cumulative second quarter was ¥5,879 million, down 8.3% year on year, due to the trend toward longer construction periods, as well as delays in the delivery of Canadian timber components resulting from last year's Canadian wildfires and other factors. In terms of profitability, consolidated operating loss was ¥352 million, a year-on-year decrease of ¥466 million, due to front-loaded investments to achieve the medium-term management plan, including higher advertising and sales promotion expenses to increase visitors to model-home centers, higher personnel expenses and other costs from expanding sales staff and other personnel ahead of the opening of BESS Tama, and system development for the operation of the BH production system, in addition to the decline in gross profit accompanying lower revenue.」

「Consolidated revenue for the cumulative first quarter was ¥2,632 million, down 8.0% year on year, due to the trend toward longer construction periods, as well as delays in the delivery of Canadian timber components resulting from last year's Canadian wildfires and other factors. In terms of profitability, consolidated operating loss was ¥369 million, a decrease of ¥304 million year on year, due to front-loaded investments to achieve the medium-term management plan, including higher advertising and sales promotion expenses to increase visitors to model-home centers, higher personnel expenses and other costs from expanding sales staff and other personnel ahead of the opening of BESS Tama, and system development for the operation of the BH production system, in addition to the decline in gross profit accompanying lower revenue. Consolidated ordinary loss was ¥386 million, down ¥327 million, and the quarterly net loss attributable to owners of the parent was ¥285 million, down ¥244 million.」

「Consolidated revenue for the fiscal year reached a record high of ¥13,479 million, up 4.5% year on year, despite construction periods and component delivery times in the dealer division both tending to lengthen, as sales generated from the substantial contract backlog at the beginning of the fiscal year in the direct-sales division progressed smoothly. In terms of profitability, consolidated operating profit was ¥445 million, down 33.2% year on year, due to front-loaded investments to achieve the medium-term management plan, including a decline in gross margin from sales promotion measures, higher advertising and sales promotion expenses to increase visitors to model-home centers, higher personnel expenses from expanding sales staff and other personnel ahead of the opening of BESS Tama, and preparation costs for introducing production innovation.」

「In terms of profitability, consolidated operating profit was ¥84 million, down 81.3% year on year, due to front-loaded investments to achieve the medium-term management plan, including a decline in gross margin from sales promotion measures, higher advertising and sales promotion expenses to increase visitors to model-home centers, higher personnel expenses from expanding staff ahead of the opening of BESS Tama, and preparations for implementing production innovation.」

「Operating profit was ¥114 million, down 70.7% year on year, due to upfront investments to achieve the medium-term management plan, including a decline in the gross profit margin from sales promotion initiatives, higher advertising and sales promotion expenses to increase visitors to model-home sites, higher personnel expenses from increasing staff ahead of the opening of BESS Tama, and preparations for production innovation.」