Reduction in equipment-investment tax incentives and completion of the equipment-replacement cycle
First written in FY2017-Q1. 9 of 31 entries say "Mitigated", first in FY2018-Q1. Latest entry: FY2025-H1.
No other company in this theme has enough history to compare yet.
- FY2025-H1MitigatedAnnual report
「We began business activities in the Shikoku region through the Tokushima Sales Office, which was established in March of this year. We also actively exhibited at trade shows held nationwide and strengthened advertising and promotional activities. As a result, both materials sales and machinery sales increased.」
For the merchandise business, where equipment investment demand and machinery sales had remained sluggish, both materials sales and machinery sales recorded revenue growth following the expansion of branch openings and trade show participation. - FY2024-Q3RestatedAnnual report
「During the cumulative third quarter, materials sales remained solid, but we struggled with machinery sales, resulting in a revenue decline. Profit declined because sales of our own-brand products, which carry high profit margins, remained sluggish in the machinery sales business.」
The company continues to report that, even as equipment investment demand recovers, materials sales remain solid while machinery sales and sales of high-margin own-brand products remain sluggish, resulting in declining revenue and profit for the merchandise business. - FY2024-Q2Decline in machinery sales, solid materials salesAnnual report
「As socioeconomic activity normalized, we strengthened efforts to capture recovering equipment investment demand and develop new customers. As a result, machinery sales declined, but materials sales remained solid, resulting in revenue growth for the merchandise business overall. Profit declined because sales of our own-brand products, which carry high profit margins, remained sluggish in the machinery sales business.」
While equipment investment demand was in a recovery phase, machinery sales declined in both revenue and profit, whereas the overall merchandise business recorded revenue growth on the strength of materials sales. - FY2024-Q1MitigatedAnnual report
「As socioeconomic activity normalized, we strengthened efforts to capture recovering equipment investment demand and develop new customers. As a result, materials sales were at the same level as in the corresponding period of the previous year, while machinery sales performed strongly.」
For the merchandise business, which had been sluggish due to stagnant equipment investment demand and the impact of the pandemic, the recovery in equipment investment demand and strong machinery sales were noted. - FY2023MitigatedAnnual report
「The merchandise business faces a difficult market environment, as does the printing business. However, as a leading comprehensive trading company for printing-related products, we are working to expand our market share by leveraging our nationwide network of locations to identify customer needs and provide thorough, attentive follow-up. Equipment investment demand has continued to recover as socioeconomic activity has normalized, and we have strengthened efforts to acquire new customers and capture demand through the Manufacturing Subsidy Program.」
Recovery from stagnant equipment investment demand and the impact of the pandemic has continued, with demand for the merchandise business being captured through new customer development and the use of subsidies. - FY2023-Q3RestatedAnnual report
「As socioeconomic activity normalized, business conditions continued to recover.」
We continue to recognize that the merchandise business, which had been sluggish due to stagnant equipment investment demand and the impact of the pandemic, remains on a recovery trend. - FY2023-Q2MitigatedAnnual report
「As social and economic activity normalised, customers' internal public-relations and sales-promotion activities showed signs of recovery. However, repeated increases in printing-paper prices have further accelerated the shift of advertising and promotional media to digital formats, or away from paper, reducing commercial printed materials such as in-house newsletters, catalogues and flyers and making a recovery to previous levels difficult.」
Although there was no indication that equipment investment demand or the merchandise market had fully recovered, customer activity began to recover as socioeconomic activity normalized, and both materials sales and machinery sales in the merchandise business recorded revenue growth. - FY2023-Q1MitigatedAnnual report
「As socioeconomic activity normalized, we actively pursued advertising and promotional activities, including developing new customers and exhibiting at events. As a result, both materials sales and machinery sales entered a recovery trend.」
Regarding the merchandise business, which had been sluggish due to stagnant equipment investment demand and the impact of the pandemic, machinery sales as well as materials sales entered a recovery trend. - FY2022RestatedAnnual report
「However, market contraction and the impact of COVID-19 caused orders from our printing company customers to decline, resulting in sluggish revenue. Materials sales returned to revenue growth, while machinery sales posted a revenue decline.」
Amid continuing stagnant equipment investment demand and the impact of the pandemic, materials sales returned to revenue growth, while machinery sales posted a revenue decline. - FY2022-Q3RestatedAnnual report
「Materials sales were on a recovery trend, but machinery sales remained sluggish due to stagnant equipment investment demand.」
The recovery trend in materials sales and the sluggishness of machinery sales due to stagnant equipment investment demand have continued. - FY2022-Q2Sluggish machinery sales, continued recovery in materials salesAnnual report
「Materials sales continued to recover, but machinery sales remained sluggish.」
Amid the continuing decline in orders from printing companies and the impact of the pandemic, materials sales maintained their recovery trend, while machinery sales remained sluggish. - FY2022-Q1Sluggish machinery sales, recovering materials salesAnnual report
「However, in addition to the decline in orders from our printing company customers, the impact of COVID-19 caused revenue to remain sluggish. Materials sales entered a recovery trend, but machinery sales remained weak. Despite thorough cost reductions, including in procurement costs and advertising expenses, we also struggled on the profit front.」
While the decline in orders from printing companies and the impact of the pandemic continued, materials sales showed signs of recovery, whereas machinery sales remained sluggish. - FY2021WorsenedAnnual report
「During the consolidated fiscal year, we were significantly affected by COVID-19 in addition to the decline in orders from our printing company customers. During the fourth quarter, we sought to recover by capturing equipment investment demand through the Manufacturing Subsidy Program and holding sales promotion events. However, for the full year, revenue declined in both materials sales and machinery sales.」
In addition to the end of the equipment renewal cycle, declining orders and the impact of the pandemic resulted in full-year revenue declines in both materials sales and machinery sales. - FY2021-Q2Continued decline in revenue, signs of recoveryAnnual report
「During the cumulative second quarter, revenue declined in both materials sales and machinery sales due to the decline in orders from our printing company customers and the impact of COVID-19. Although signs of recovery have recently emerged, we expect the impact of the pandemic on performance to continue for the time being.」
In addition to the end of the equipment renewal cycle, declining orders and COVID-19 caused revenue declines in both materials sales and machinery sales, while signs of a recent recovery were also noted. The quantified risk of declining revenue has materialized in the results. - FY2021-Q1WorsenedAnnual report
「In addition to a decline in orders from customer printing companies, sales activities, including new-customer development, did not progress as planned because of the impact of the COVID-19 pandemic, and materials sales in particular struggled.」
In addition to the end of the equipment renewal cycle, declining orders from printing companies and stalled sales activities due to COVID-19 have resulted in sluggish growth in materials sales. - FY2020WorsenedAnnual report
「Machinery sales declined partly because demand for large-machine replacements showed signs of leveling off.」
In addition to the backlash in equipment-investment demand following subsidies and tax incentives, demand for large-machine replacements began to level off, resulting in lower machinery sales. - FY2020-Q3Backlash from front-loaded demand ahead of the consumption tax increaseAnnual report
「After capturing front-loaded demand ahead of the consumption tax increase last autumn, machinery sales were affected slightly by the subsequent backlash in the consolidated accounting period for the third quarter, while materials sales remained firm.」
The disclosure states that the front-loaded demand ahead of the consumption tax increase captured in the previous quarter led to a backlash affecting machinery sales in the third-quarter accounting period. - FY2020-Q2Front-loaded demand ahead of the consumption tax increaseAnnual report
「Materials sales and machinery sales both performed well, partly because we captured front-loaded demand ahead of the consumption tax increase.」
The disclosure states that, separate from the traditional backlash following tax incentives, the company captured front-loaded demand ahead of the consumption tax increase in connection with equipment-replacement demand. - FY2020-Q1WorsenedAnnual report
「However, as demand for large-machine replacements showed signs of leveling off, there were fewer proprietary-brand machinery projects, and the gross profit on machinery sales struggled to grow because the cost-of-sales ratio increased.」
The leveling off of demand for large-machine replacements reduced the number of proprietary-brand machinery projects, and the impact was reflected in a higher cost-of-sales ratio and sluggish gross-profit growth. - FY2019WorsenedAnnual report
「Although we focused on capturing equipment-investment demand using the Monozukuri Subsidy Program in machinery sales, sales declined partly because demand for large-machine replacements showed signs of leveling off.」
Although the company focused on capturing equipment-investment demand using the subsidy program, machinery sales declined as demand for large-machine replacements also began to level off. - FY2019-Q3WorsenedAnnual report
「Although we focused on capturing equipment-investment demand using the Monozukuri Subsidy Program in machinery sales, sales declined.」
The disclosure states that, although the company focused on capturing equipment-investment demand using the Monozukuri Subsidy Program, machinery sales declined. - FY2019-Q2MitigatedAnnual report
「In machinery sales, the review of applications under the Monozukuri Subsidy Program, which had been delayed beyond initial expectations, progressed, and we focused on capturing equipment-investment demand using the program.」
Regarding the delay in reviewing applications under the Monozukuri Subsidy Program reported in the previous quarter, the disclosure states that the review had progressed. However, both merchandising-business sales and operating profit declined year on year. - FY2019-Q1WorsenedAnnual report
「In the merchandising business, we actively proposed products with higher added value and improved quality and environmental performance, strengthened sales of proprietary-brand machinery, and pursued new-customer acquisition activities. However, in machinery sales, the review of applications under the Monozukuri Subsidy Program took longer than expected, and the gross margin declined. In addition, personnel expenses, research and development expenses, and other costs increased as we strengthened our organizational structure.」
In equipment and machinery sales, the impact included not only the traditional backlash in demand following tax incentives, but also delays in reviewing applications under the Monozukuri Subsidy Program, a lower gross margin, and increased costs to strengthen the organizational structure. - FY2018MitigatedAnnual report
「As a result, merchandising-segment sales were ¥14,167 million, up 10.9% from the previous fiscal year, and operating profit was ¥383 million, up 26.4%.」
Although the contraction in print media continued to affect printing-materials sales, the merchandising segment achieved higher sales and profit through machinery sales, proprietary-brand machinery, and new-customer development, indicating progress in recovering from the backlash in equipment-replacement demand. - FY2018-Q3MitigatedAnnual report
「In the merchandising business, we actively proposed products with higher added value and improved quality and environmental performance, strengthened sales of proprietary-brand machinery, and pursued new-customer acquisition activities, with the aim of recovering from the fiscal year ended March 2017, which was affected by the backlash from the unusually strong demand for machinery generated by tax incentives in the fiscal year ended March 2016. As a result, merchandising-business sales were ¥9,873 million, up 5.0% year on year, and operating profit was ¥217 million, up 1.5%.」
Measures to recover from the backlash following the tax-incentive-driven boom in machinery demand continued, and both sales and operating profit in the merchandising business increased year on year. - FY2018-Q2Sales recovery and slight decline in profitAnnual report
「In the merchandising business, we actively proposed products with higher added value and improved quality and environmental performance, strengthened sales of proprietary-brand machinery, and pursued new-customer acquisition activities, with the aim of recovering from the fiscal year ended March 2017, which was affected by the backlash from the unusually strong demand for machinery generated by tax incentives in the fiscal year ended March 2016. As a result, merchandising-segment sales increased 2.2% year on year to ¥6,497 million, while operating profit declined slightly, by 2.0%, to ¥169 million.」
Measures to recover from the backlash following the tax-incentive-driven boom in machinery demand continued. Merchandising-segment sales turned to growth, increasing 2.2% year on year, while operating profit declined 2.0%. - FY2018-Q1MitigatedAnnual report
「In the merchandising business, we actively proposed products with higher added value and improved quality and environmental performance, strengthened sales of proprietary-brand machinery, and pursued new-customer acquisition activities, with the aim of recovering from the fiscal year ended March 2017, which was affected by the backlash from the unusually strong demand for printing-machine replacements generated by tax incentives in the fiscal year ended March 2016. As a result, merchandising-segment sales were ¥2,811 million, down 0.9% year on year, while operating profit rose 54.5% to ¥69 million, owing to increased sales of proprietary-brand machinery and an improved gross margin on general machinery, among other factors.」
Although the backlash from the unusually strong equipment-replacement demand following the tax incentives remained, the decline in merchandising-segment sales narrowed to 0.9%, while operating profit increased 54.5%. - FY2017RestatedAnnual report
「Despite these activities, merchandising-segment sales were ¥12,774 million, down 13.1% year on year, and operating profit was ¥303 million, down 24.5%.」
Although measures to address the backlash from equipment-replacement demand created by the equipment-investment tax incentive continued, the full-year impact was reflected in lower merchandising-segment sales and operating profit. - FY2017-Q3WorsenedAnnual report
「As a result of these activities, merchandising-segment sales were ¥9,399 million, down 11.5% year on year, and operating profit was ¥214 million, down 27.2%.」
Although measures to offset the backlash from demand created by the equipment-investment tax incentive continued, the impact was reflected in lower merchandising-segment sales and operating profit. - FY2017-Q2RestatedAnnual report
「To minimize the backlash from demand for equipment upgrades at customer printing companies created by the Productivity Improvement Equipment Investment Promotion Tax Incentive, which provided a tailwind in the fiscal year ended March 2016, we further strengthened sales of printing materials, proposed products that would create higher value added and new markets for printing-related businesses, proposed differentiated products with improved quality and environmental performance, and pursued new-customer acquisition activities.」
The backlash from equipment-replacement demand generated by the equipment-investment tax incentive remained an identified challenge, and measures to limit its impact were described. - FY2017-Q1First statedAnnual report
「However, because the benefits of the Productivity Improvement Equipment Investment Promotion Tax Incentive were reduced from April 2016 and the equipment-replacement activity of customer companies had largely run its course by the end of the previous fiscal year, merchandising-business sales were ¥5,021 million, down 4.0% year on year.」
The reduction in tax incentives and completion of customer companies' equipment-replacement cycle had already emerged as factors behind the decline in merchandising-business sales.