Pressure on SG&A expenses and earnings from higher freight rates and rent

「Operating income was ¥1.12891 billion, up 109.9% from the previous consolidated fiscal year, due to a 1.1-percentage-point improvement in the gross profit margin and a 0.4-percentage-point improvement in the SG&A ratio, both year on year.」

「In terms of earnings, a 1.4-percentage-point year-on-year improvement in the gross profit margin and lower SG&A expenses resulted in operating profit of ¥198.84 million, up 974.0% year on year, and ordinary profit of ¥382.80 million, up 111.5%.」

「Operating income was ¥382.66 million, compared with an operating loss of ¥467.58 million in the previous consolidated fiscal year, due to an improved gross profit margin and lower SG&A expenses resulting from the logistics cost reduction project and other measures.」

「Operating income was ¥152.99 million, down 1.2% year on year, due to a lower gross profit margin resulting from the weaker yen and higher raw material costs, as well as increased selling, general and administrative expenses resulting from higher sales promotion expenses, storage fees and other costs.」

「In terms of profit, the cost-of-sales ratio improved following price revisions, but the improvement was limited by the yen's depreciation, which exceeded expectations, while the disposal of inventories of COVID-19-related products and higher SG&A expenses also weighed on results.」

「In terms of profit, the cost-of-sales ratio improved following price revisions, but the improvement was limited by the yen's depreciation, which exceeded expectations, while the disposal of inventories of COVID-19-related products and higher SG&A expenses also weighed on results.」

「For the nine months ended the first quarter of the current consolidated fiscal year, the e-commerce business expanded, partly due to sales contributed by H.I.M Co., Ltd., which was absorbed in February 2023. However, net sales fell 6.1% year on year to ¥8.14433 billion. In terms of profit, the cost-of-sales ratio improved following price revisions, but the improvement was limited by the yen's depreciation, while higher SG&A expenses also contributed to an operating loss of ¥388.50 million, compared with an operating loss of ¥87.10 million in the same period of the previous year.」

「Selling, general and administrative expenses represented 35.1% of net sales, up 1.1 percentage points from 34.0% in the previous consolidated fiscal year, due to higher logistics and other costs.」

「The company worked to secure profitability through product price revisions, but operating income fell 89.6% year on year to ¥81.41 million due to the sharp depreciation of the yen, higher logistics costs and other costs, and persistently high raw material prices.」

「Amid continued increases in raw material and logistics costs, the company revised prices for some products and worked to secure profitability. However, due to stockouts of products including "TEPRA," the decline following strong sales of the "TETTE" hand sanitizer dispenser in the previous year, and lower sales of wide-spine files, net sales fell 1.6% year on year to ¥11.96187 billion. In addition to the sharp depreciation of the yen and higher logistics costs, persistently high raw material prices resulted in an operating loss of ¥456.62 million, compared with operating income of ¥102.97 million in the same period of the previous year.」

「Amid continued increases in raw material and logistics costs, the company revised prices for some products in June and September 2022 and worked to secure profitability. However, due to stockouts of products including "TEPRA," the decline following strong sales of the "TETTE" hand sanitizer dispenser in the previous year, and lower sales of wide-spine files, net sales fell 6.8% year on year to ¥5.54467 billion. In addition to the sharp depreciation of the yen and higher logistics costs, persistently high raw material prices resulted in an operating loss of ¥180.47 million, compared with operating income of ¥121.38 million in the same period of the previous year.」

「The main selling, general and administrative expense items and amounts were as follows: freight ¥2,058,559; rent ¥1,428,220」

「Amid continued increases in raw material and logistics costs, the company revised prices for some products from December and worked to secure profitability.」

「Amid continued increases in raw material and logistics costs, the company implemented price revisions for some products from December and worked to secure profitability.」

「In terms of profit, SG&A expenses increased due to higher freight costs and the implementation of television commercials, despite the increase in net sales, a lower cost-of-sales ratio and reductions in travel expenses and other fixed costs resulting from the promotion of telework.」

「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「As a result, despite implementing various sales expansion measures, sales of large products at ㈱ぼん家具 remained sluggish, partly due to the impact of price revisions following higher freight costs. Revenue at ㈱ラドンナ and ㈱アスカ商会 also declined because of weak performance by their core products. As all 3 companies reported lower revenue year on year, revenue was ¥1,408.88 million, down 20.7%, and the segment posted an operating loss of ¥60.93 million, compared with operating profit of ¥9.4 million in the previous year.」

「Selling, general and administrative expenses represented 34.3% of net sales, up 0.7 percentage points from 33.6% in the previous consolidated fiscal year, due to increases in freight, rent and other costs, including price increases in the transportation industry.」