Costs and profitability risks associated with taking over the locations of a financially distressed distributor
First written in FY2019-Q3. 10 of 24 entries say "Mitigated", first in FY2020. Latest entry: 2026-08-12.
No other company in this theme has enough history to compare yet.
- 2026-08-12WorsenedEarnings
「BP’s principal business is providing BESS-designed homes and other products through direct construction contracts with customers at a total of 9 locations: Sapporo (Hokkaido), Sendai (Miyagi Prefecture), Tsukuba (Ibaraki Prefecture), Kumagaya (Saitama Prefecture), Fuji and Hamamatsu (Shizuoka Prefecture), East Aichi (Aichi Prefecture), Gifu (Gifu Prefecture) and Kumamoto (Kumamoto Prefecture). Kumagaya was closed in June 2026, and Kawaguchi was added in July 2026, leaving a total of 9 operating locations.」
BP closed its Kumagaya location and replaced it with Kawaguchi, creating a 9-location network. Segment loss also widened from ¥48 million in the previous year to ¥62 million. - FY2026MitigatedAnnual report
「For the fiscal year, segment revenue was ¥4,338 million, up 9.2% year on year, and the segment recorded a loss of ¥187 million, compared with a loss of ¥250 million in the previous year.」
BP reported higher revenue, and its segment loss narrowed from ¥250 million in the previous year to ¥187 million. However, it continues to report a loss. - FY2026-H1MitigatedAnnual report
「Segment revenue for the interim period was ¥2,272 million, up 20.7% year on year, and the segment recorded a loss of ¥25 million, compared with a loss of ¥168 million in the same period of the previous year.」
BP reported higher revenue, and its segment loss narrowed from ¥168 million in the same period of the previous year to ¥25 million. The impact of profitability risks associated with the transferred locations was lower than in the interim period of the previous fiscal year. - FY2025-H1WorsenedAnnual report
「Segment revenue for the interim period was ¥1,882 million, down 29.3% year on year, and the segment recorded a loss of ¥168 million, compared with a loss of ¥9 million in the same period of the previous year. Segment contract bookings were ¥2,233 million, up 14.2%.」
Although BP's contract bookings increased 14.2% year on year, revenue fell 29.3% and the segment loss widened from ¥9 million in the same period of the previous year to ¥168 million. - FY2024-Q3WorsenedAnnual report
「Segment revenue for the cumulative third quarter was ¥3,695 million, down 8.8% year on year, and the segment recorded a loss of ¥94 million, compared with a loss of ¥56 million in the same period of the previous year. Segment contract bookings were ¥2,732 million, down 2.2%.」
BP's revenue fell 8.8% year on year and contract bookings fell 2.2%, while its segment loss widened from ¥56 million in the same period of the previous year to ¥94 million. Profitability risks at the transferred locations have deteriorated again. - FY2024-Q2WorsenedAnnual report
「Segment revenue for the cumulative second quarter was ¥2,663 million, down 9.8% year on year, and the segment recorded a loss of ¥9 million, compared with a profit of ¥32 million in the same period of the previous year.」
BP swung from segment profit of ¥32 million in the same period of the previous year to a loss of ¥9 million, while revenue also fell 9.8% year on year. The improvement in profitability following the transfer of the locations was weakening. - FY2024-Q1MitigatedAnnual report
「Segment revenue for the cumulative first quarter was ¥1,263 million, up 9.8% year on year, and the segment recorded a loss of ¥37 million, compared with a loss of ¥66 million in the same period of the previous year.」
BP reported higher revenue, and its segment loss narrowed from ¥66 million in the same period of the previous year to ¥37 million. Profitability risks following the transfer of the locations remain, but the loss narrowed. - FY2023WorsenedAnnual report
「For the fiscal year, segment revenue was ¥5,256 million, down 19.1% year on year, and the segment recorded a loss of ¥112 million, compared with segment profit of ¥166 million in the previous year.」
BP swung from segment profit in the previous year to a loss of ¥112 million, while revenue also declined 19.1%. The improvement in its earnings structure following the transfer of the locations deteriorated. - FY2023-Q3WorsenedAnnual report
「For the cumulative third quarter, segment revenue was ¥4,051 million, down 12.1% year on year, and the segment recorded a loss of ¥56 million, a decline of ¥126 million from the same period of the previous year.」
BP swung from segment profit in the same period of the previous year to a loss of ¥56 million, while revenue also fell 12.1% year on year. The improvement in its earnings structure following the transfer of the locations deteriorated in the quarter. - FY2023-Q2Decline in BP's profitAnnual report
「For the cumulative second quarter, segment revenue was ¥2,953 million, down 8.2% year on year, and segment profit was ¥32 million, down 73.4% year on year.」
Although BP secured a segment profit, revenue fell 8.2% year on year and segment profit declined 73.4%, indicating that the improvement in profitability had lost momentum. - FY2023-Q1WorsenedAnnual report
「Segment revenue for the cumulative first quarter was ¥1,151 million, down 22.4% year on year, and the segment recorded a loss of ¥66 million, compared with a profit of ¥44 million in the same period of the previous year. Segment contract bookings were ¥313 million, down 75.8%.」
BP swung from segment profit of ¥44 million in the same period of the previous year to a segment loss of ¥66 million, while revenue also fell 22.4% year on year. After profitability had continued to improve following the transfer of the locations, earnings deteriorated in the quarter. - FY2022-Q3RestatedAnnual report
「It also remained profitable for the first 9 months of the current fiscal year, and improvements in its earnings structure are progressing.」
Regarding upfront costs and profitability risks associated with the transferred locations, the disclosure states that BP continued to report a profit and that its earnings structure was improving. - FY2022-Q2MitigatedAnnual report
「In addition, as a consolidated subsidiary, 株式会社ＢＥＳＳパートナーズ, referred to below as BP, continued efforts to provide management guidance aimed at improving operational efficiency, it remained profitable in the second half of the previous fiscal year and progressed toward transforming its earnings structure.」
As a result of management guidance aimed at improving operational efficiency, BP remained profitable for the second half of the previous fiscal year and further reduced the impact of upfront costs and profitability risks associated with the locations taken over and other factors. - FY2022-Q1MitigatedAnnual report
「Segment revenue for the first quarter of the current fiscal year was ¥1,482 million, up 36.9% year on year, as revenue recognition at the 3 locations in Itoshima, Kumamoto and Senshu added from March 2020 began to accelerate. Segment profit was ¥44 million, compared with a loss of ¥62 million in the same period of the previous year, indicating that BP's earnings have steadily improved after the period of upfront investment associated with taking over locations.」
As revenue recognition at the locations taken over accelerated, BP changed from a segment loss of ¥62 million in the same period of the previous year to a segment profit of ¥44 million. The impact of upfront cost risks associated with taking over locations has diminished. - FY2021MitigatedAnnual report
「Although upfront investment was required during the consolidated fiscal year due to the takeover of several new locations, we achieved a return to operating profitability.」
While upfront costs associated with the locations taken over remain, BP changed from a segment loss of ¥120 million to a segment profit of ¥19 million. - FY2021-Q3MitigatedAnnual report
「Segment revenue for the first 9 months of the current fiscal year was ¥4,052 million, up 35.2% year on year, as the 6 locations taken over from January 2019 contributed to increased revenue. However, operating expenses were incurred ahead of revenue at the 3 locations taken over most recently, resulting in a segment loss of ¥33 million, compared with a loss of ¥197 million in the same period of the previous year.」
Revenue contributions from the 6 locations taken over from January 2019 increased, narrowing BP's segment loss from ¥197 million in the same period of the previous year to ¥33 million. Meanwhile, operating expenses remain ahead of revenue at the 3 locations taken over most recently. - FY2021-Q2MitigatedAnnual report
「Segment revenue for the first 6 months of the current fiscal year was ¥2,616 million, up 48.9% year on year, as the 6 locations taken over from January 2019 contributed to increased revenue. However, operating expenses were incurred ahead of revenue at the 3 locations taken over most recently, resulting in a segment loss of ¥30 million, compared with a loss of ¥212 million in the same period of the previous year.」
Revenue contributions from the 6 locations taken over increased, narrowing BP's segment loss from ¥212 million in the same period of the previous year to ¥30 million. Meanwhile, operating expenses remain ahead of revenue at the 3 locations taken over most recently. - FY2021-Q1MitigatedAnnual report
「Segment revenue for the first quarter of the current fiscal year was ¥1,083 million, up 116.9% year on year, due in part to increased sales at the 6 locations in the Ibaraki and Tokai areas added from January 2019. However, the segment loss was ¥62 million, compared with a loss of ¥177 million in the same period of the previous year, partly due to upfront costs at new locations in the Kyushu area.」
Increased revenue from the 6 locations taken over in the Ibaraki and Tokai areas, among others, drove BP's segment revenue to ¥1,083 million, up 116.9% year on year. Although upfront costs remain at new locations in the Kyushu area, the segment loss narrowed from ¥177 million in the same period of the previous year to ¥62 million. - FY2020MitigatedAnnual report
「Segment revenue for the consolidated fiscal year was ¥4,811 million, up 130.3% year on year. Contracts secured at the 6 locations taken over in the previous fiscal year began progressing, enabling them to contribute to earnings in the second half, but they did not yet cover the upfront costs incurred, resulting in a segment loss of ¥120 million, compared with a loss of ¥266 million in the previous fiscal year.」
Revenue contributions from the 6 locations taken over increased, narrowing BP's segment loss from ¥266 million to ¥120 million. However, the upfront costs remain uncovered, and monetization is not yet complete. - FY2020-Q3Delay in monetizing the locations taken overAnnual report
「Segment revenue for the first 9 months of the current fiscal year was ¥2,997 million, up 102.7% year on year, as contracts secured at the 6 locations taken over in the previous fiscal year began contributing to revenue. However, the segment loss was ¥197 million, compared with a loss of ¥116 million in the same period of the previous year, due to upfront costs and other expenses at these locations. Revenue contributions are expected to emerge going forward as the remaining contracted orders at these locations progress toward recognition, but progress has been somewhat delayed due to difficulties in establishing the necessary operating structure.」
The 6 locations taken over began contributing to revenue, generating ¥2,997 million in sales, up 102.7% year on year, while upfront costs resulted in a continuing segment loss of ¥197 million. Although a shift toward contributing earnings is expected, the company disclosed that establishing the necessary operating structure has been delayed. - FY2020-Q2MaterialisedAnnual report
「Segment revenue for the first 6 months of the current fiscal year was ¥1,757 million, up 78.6% year on year, as contracts secured at the 6 locations taken over in the previous fiscal year began contributing to revenue. However, the segment loss was ¥212 million, compared with a loss of ¥43 million in the same period of the previous year, due to costs incurred at these locations and other factors.」
The 6 locations taken over from a financially distressed sales company began contributing to orders and revenue, while BP posted a segment loss of ¥212 million due to upfront costs. - FY2020-Q1MaterialisedAnnual report
「Due in part to upfront costs incurred in operating the 6 locations BP took over from a sales company that fell into financial difficulty in the previous fiscal year, the consolidated operating loss was ¥411 million, compared with a loss of ¥368 million in the same period of the previous year,」
Upfront costs associated with operating the 6 locations taken over from a financially distressed sales company were incurred and contributed to the operating loss for the quarter. Orders at the locations taken over have been steady, and revenue contributions are expected from the second half onward. - FY2019MaterialisedAnnual report
「In addition, from January 2019, we began operating 6 of ZERO's 7 locations. This measure was taken with customer protection as the top priority. In addition to BP incurring costs associated with the handover, forecast expenditures for the construction projects taken over are expected to exceed scheduled collections.」
The full-year business and earnings outlook confirms the costs associated with taking over locations of a financially distressed sales company and the expectation that forecast construction expenditures will exceed scheduled collections. - FY2019-Q3First statedAnnual report
「In addition, from January 2019, BP began operating 6 of the 7 locations of 株式会社ＢＥＳＳ－ＺＥＲＯ, a financially distressed sales company referred to below as ＺＥＲＯ社. This measure was taken with customer protection as the top priority. In addition to BP incurring costs associated with the handover, forecast construction expenditures are expected to exceed scheduled collections as a result of the handover.」
This is the first disclosure that BP took over 6 locations of a financially distressed sales company, incurring handover costs, and that forecast construction expenditures are expected to exceed scheduled collections.