Decline in Gross Margin Due to Rising Sales Share of Low-Margin Products
First written in FY2018-Q2. 8 of 18 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2025.
Yonex moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2023: 5 of 10 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2025Sales-mix effects varied by regionAnnual report
「Although SG&A expenses, including personnel expenses, increased, the increase in gross profit resulting from higher revenue and an improved gross margin due to changes in the sales mix was greater, resulting in higher profit.」
In North America, the sales mix contributed to an improved gross margin, while its effect differed by region, showing that the impact on gross margins was not uniform. - FY2025-H1MitigatedAnnual report
「Although SG&A expenses, including personnel expenses, increased, the increase in gross profit resulting from higher revenue and an improved gross margin due to changes in the sales mix was greater, resulting in higher profit.」
In North America, changes in the sales mix contributed to an improved gross margin, partially mitigating the downward pressure on the gross margin from the sales mix. - FY2024Sales-mix effects varied by regionAnnual report
「At the Chinese sales subsidiary, sales of products across a broad range of price points increased as the participant base expanded, and the gross margin remained below the level of the previous fiscal year. However, gross profit increased in the fourth quarter because of substantial revenue growth.」
In China, higher sales of products across a broad range of price points pushed down the gross margin, while in Japan, the sales mix and a review of selling prices contributed to an improved gross margin, as did an improved sales mix in Europe. - FY2024-Q3MaterialisedAnnual report
「At the Chinese sales subsidiary, the gross margin remained below the level of the same period of the previous year as sales of products across a broad range of price points increased alongside expansion of the participant base. SG&A expenses also increased because of higher advertising and promotional expenses from intensified marketing activities and international tournaments, as well as higher personnel expenses associated with strengthening the organization, resulting in lower profit.」
At the Chinese sales subsidiary, sales of products across a broad range of price points increased as the participant base expanded, and the gross margin remained below the level of the same period of the previous year. The lower gross margin caused by the sales mix was reflected in actual results as a factor behind lower profit. - FY2024-Q2Regional gross-margin declines, including delayed price pass-through and higher energy costsAnnual report
「In Japan, the gross margin declined because price increases were not implemented quickly enough to offset higher procurement prices caused by the weaker yen and higher energy costs. However, gross profit increased because of higher revenue and the sales mix.」
In Japan, delayed price pass-through of higher procurement prices caused by the weaker yen and higher energy costs contributed to the lower gross margin. The effect of the sales mix differed by region. - FY2024-Q1Gross-margin effects varied by regionAnnual report
「Profit declined because, in addition to the lower gross margin caused by the sales mix, SG&A expenses increased as advertising and promotional expenses rose mainly because of marketing investments at the Chinese sales subsidiary, and personnel expenses increased as the organization was strengthened.」
In Asia, the lower gross margin caused by the sales mix and investments in marketing and personnel reduced profit. In contrast, an improved sales mix in Europe contributed to a higher gross margin, showing that the effects varied by region. - FY2023-Q3MaterialisedAnnual report
「On the profit front, profit declined because, in addition to the lower gross margin caused by the sales mix, advertising and promotional expenses increased due to international tournaments and other factors.」
In Europe, the gross margin continued to decline because of the sales mix, while higher advertising and promotional expenses related to international tournaments and other factors also contributed to lower profit. - FY2023-Q2MaterialisedAnnual report
「The company posted an operating loss because, in addition to the lower gross margin caused by the sales mix, advertising and promotional expenses increased due to international tournaments and other factors. As a result, revenue was ¥1,671 million, up 93.3% year on year, and the operating loss was ¥37 million, compared with an operating loss of ¥23 million in the same quarter of the previous year.」
In Europe, revenue increased substantially, but the gross margin continued to decline because of the sales mix, while higher advertising and promotional expenses related to international tournaments also contributed to an operating loss. - FY2022-Q3MitigatedAnnual report
「On the profit front, the increase in gross profit resulting mainly from higher revenue at the Chinese sales subsidiary and an improved gross margin due to the sales mix exceeded the increase in SG&A expenses, including advertising and promotional expenses, resulting in a substantial increase in profit.」
Unlike the previous gross-margin declines caused by the sales mix, the sales mix at the Chinese sales subsidiary contributed to an improved gross margin and a substantial increase in profit. - FY2022-Q2MitigatedAnnual report
「On the profit front, the increase in gross profit resulting mainly from higher revenue at the Chinese sales subsidiary and an improved gross margin due to the sales mix exceeded the increase in SG&A expenses, including advertising and promotional expenses, resulting in a substantial increase in profit.」
The sales mix contributed to an improved gross margin, indicating an impact in the opposite direction from the previously identified risk of a lower gross margin due to the sales mix. - FY2020RestatedAnnual report
「On the profit front, the gross margin declined because of changes in the sales mix, while SG&A expenses, including personnel expenses, increased.」
In Europe, the gross margin continued to decline because of changes in the sales mix, reconfirming that profitability fluctuates with the sales mix. - FY2020-Q3MaterialisedAnnual report
「On the profit front, the gross margin declined because of changes in the sales mix, while SG&A expenses, including personnel expenses, increased.」
In Europe, the gross margin continued to decline because of changes in the sales mix, compounded by higher SG&A expenses, including personnel expenses. - FY2020-Q2MaterialisedAnnual report
「On the profit front, the gross margin declined because of changes in the sales mix, while SG&A expenses remained at the previous year's level.」
At the European sales subsidiary, the gross margin actually declined because of changes in the sales mix. - FY2020-Q1MaterialisedAnnual report
「On the profit front, the gross margin declined because of changes in the sales mix, which also affected production efficiency at domestic plants. SG&A expenses increased because of higher advertising and promotional expenses, including player contracts, as well as higher personnel expenses.」
Although the previous fiscal year was described as showing a recovery trend in gross margin due to productivity improvements, the current quarter again saw changes in the sales mix emerge as a factor depressing production efficiency at domestic plants and the gross margin. - FY2019MitigatedAnnual report
「Although the gross margin recovered from the previous fiscal year as a result of lower manufacturing costs through productivity improvements and other factors, gross profit declined because of lower revenue.」
The change in sales mix that pushed down the gross margin in the previous fiscal year was not cited as a major factor in the current fiscal year; instead, the recovery in gross margin through productivity improvements was noted. - FY2018MaterialisedAnnual report
「Operating profit was ¥2,925 million, down 29.5% year on year, as gross margin declined due to changes in the sales mix by product, higher manufacturing costs associated with the start-up of the new domestic plant, and higher procurement costs for imported raw materials and products resulting from exchange rates that were weaker against the yen than in the previous fiscal year.」
Changes in the sales mix, together with higher manufacturing costs at the new domestic plant and the weaker yen, have resulted in a lower full-year gross margin and lower operating profit. - FY2018-Q3MaterialisedAnnual report
「Operating profit was ¥1,459 million, down 47.1% year on year; ordinary profit was ¥1,570 million, down 38.1%; and net income attributable to owners of the parent was ¥1,051 million, down 39.0%, as the decline in gross profit margin caused by changes in the sales mix, higher manufacturing costs associated with the launch of the new domestic factory, and higher procurement costs for imported raw materials and products due to yen depreciation affected earnings.」
Changes in the sales mix by product category continue to be reflected in actual results as one factor behind the lower gross margin and the 47.1% decline in operating profit. - FY2018-Q2First statedAnnual report
「Operating profit was ¥1,871 million, down 30.6% year on year, as the sales mix shifted toward relatively lower-margin products, manufacturing costs increased following the start-up of a new domestic plant, and procurement costs for imported raw materials and products rose because the yen was weaker than in the same quarter of the previous year, resulting in a lower gross margin.」
The change in sales mix resulting from higher sales of low-margin products is explicitly identified for the first time as one factor behind the lower gross margin and the 30.6% decline in operating profit.