Higher Selling, General and Administrative Expenses Due to Aggressive Development Investment
First written in FY2019-Q1. 14 of 25 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2026.
Nepon moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2018: 3 of 8 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In terms of earnings, we focused on controlling purchases of materials and other items to reduce inventory, as well as cutting various expenses. Selling, general and administrative expenses decreased by ¥8 million from the same period of the previous year,」
Selling, general and administrative expenses decreased by ¥8 million year on year due to restraint in the procurement of materials and other cost reductions, weakening the pressure on profits from structural-reform- and development-related costs incurred through the previous fiscal year. - FY2026-H1MitigatedAnnual report
「As selling, general and administrative expenses decreased by ¥57 million year on year as a result of efforts to reduce costs, including the selective allocation and concentration of research and development spending,」
Selling, general and administrative expenses decreased by ¥57 million year on year as a result of efforts to reduce costs, including the selective allocation and concentration of research and development spending. The operating loss and ordinary loss narrowed from the same period of the previous year as a result of the cost reductions. - FY2025MitigatedAnnual report
「Recognition of losses on the sale of various idle assets and other assets to reduce costs from the next fiscal year onward」
Research and development expenses decreased from the previous fiscal year, and cost-reduction measures including the sale of idle assets and other assets were described. At the same time, one-time expenses such as losses on sales were incurred. - FY2025-H1MitigatedAnnual report
「Although selling, general and administrative expenses decreased by ¥71 million year on year as a result of efforts to reduce costs, including the selective allocation and concentration of research and development spending,」
Selling, general and administrative expenses decreased by ¥71 million year on year as a result of efforts to reduce costs, including the selective allocation and concentration of research and development spending. In the interim period, measures to address the expense burden from development- and structural-reform-related costs were described as cost reductions. - FY2024WorsenedAnnual report
「In terms of profit and loss, cost of sales increased due to higher procurement prices for imported products resulting from the yen's depreciation, among other factors, while the company also incurred costs related to internal制度 and systems reform incorporated into the medium-term management plan announced in May 2023.」
Selling, general and administrative expenses increased from ¥2,601.46 million in the same period of the previous year to ¥2,753.54 million. The expense burden from internal制度 and systems reform costs was also indicated for the full year as a factor behind the increase. - FY2024-Q3WorsenedAnnual report
「Selling, general and administrative expenses increased by ¥119 million year on year, mainly because spending on structural reform costs set out in the medium-term management plan was brought forward into the first half, among other factors.」
Upfront spending on structural reform costs continued to drive the increase in selling, general and administrative expenses, which rose by ¥119 million year on year. The expense burden was quantified as larger than indicated in the previous quarter. - FY2024-Q2WorsenedAnnual report
「Selling, general and administrative expenses increased by ¥82 million year on year because spending on structural reform costs described in the medium-term management plan was brought forward into the first half, among other factors. Operating loss was ¥95 million (operating loss of ¥94 million in the same period of the previous year).」
Selling, general and administrative expenses increased by ¥82 million year on year, causing the operating loss to widen from the same period of the previous year. In addition to ongoing development investment, upfront spending on internal structural reform was cited as a factor behind the increase in expenses. - FY2024-Q1WorsenedAnnual report
「Due to the impact of higher material prices and increased investment to improve internal systems, operating loss was ¥218 million (operating loss of ¥203 million in the same period of the previous year).」
In addition to conventional product development investment, increased investment to improve internal systems was cited as a factor contributing to the cost burden, and the operating loss widened from the same period of the previous year. - FY2023WorsenedAnnual report
「Research and development expenses for the consolidated fiscal year were ¥739 million.」
Research and development expenses increased from ¥569.70 million in the previous year to ¥739.64 million. Although the numerical cost burden associated with development investment increased, operating income also increased. - FY2023-Q2RestatedAnnual report
「Expenses increased because of the impact of higher steel prices and increased development costs for IoT applications, but」
Development costs for IoT applications and other products continue to be cited as a factor behind higher expenditures. Selling, general and administrative expenses increased year on year, but the operating loss and other losses narrowed from the same period of the previous year due to higher sales. - FY2023-Q1WorsenedAnnual report
「Expenditures increased due to the impact of higher steel and other material prices and higher expenses for promoting the IoT business.」
The increase in expenses for promoting the IoT business was reflected as a cost burden in the quarter's selling, general and administrative expenses and other expenditures. Although the wording differs from the previous references to research and development investment, higher expenses associated with business promotion were reported. - FY2022-Q1MitigatedAnnual report
「Lower selling, general and administrative expenses due to the postponement of part of research and development activities resulted in an operating loss of ¥260 million (operating loss of ¥277 million in the same period of the previous year) and an ordinary loss of ¥262 million (ordinary loss of ¥264 million in the same period of the previous year).」
Selling, general and administrative expenses decreased because part of the research and development activities was postponed, and the operating loss and ordinary loss narrowed from the same period of the previous year. The impact on earnings of higher expenses associated with development investment has weakened. - FY2021MitigatedAnnual report
「In terms of earnings, selling, general and administrative expenses decreased substantially due to lower activity-related expenses resulting from restrictions on sales activities during the COVID-19 pandemic and the postponement of part of research and development investment. However, operating income was ¥246 million, down 2.8% year on year.」
The increase in selling, general and administrative expenses associated with aggressive development investment, which had put pressure on earnings in the previous fiscal year, weakened due to lower activity-related expenses and the postponement of part of research and development investment. However, this was insufficient to offset the decline in sales. - FY2021-Q3MitigatedAnnual report
「In terms of earnings, although selling, general and administrative expenses declined due to lower activity-related costs resulting from restrictions on sales activities during the COVID-19 pandemic, this was insufficient to offset the decline in revenue. Operating profit was ¥154 million, down 19.2% year on year, ordinary profit was ¥163 million, down 14.4%, and quarterly net income attributable to owners of the parent was ¥101 million, down 5.8%. The results were below those of the year-earlier period.」
Selling, general and administrative expenses were reduced due to lower activity-related expenses resulting from restrictions on sales activities, among other factors, and the impact of higher expenses associated with aggressive development investment and other factors has weakened. However, the expense reductions were insufficient to offset the decline in sales, and profit fell below the level of the same period of the previous year. - FY2021-Q2MitigatedAnnual report
「In terms of earnings, although selling, general and administrative expenses decreased due to restrictions on sales activities during the COVID-19 pandemic, this was insufficient to offset the decline in sales.」
Selling, general and administrative expenses decreased from ¥1,333.33 million in the same period of the previous year to ¥1,207.63 million, and the impact of higher expenses associated with development investment and other factors has weakened. However, this was insufficient to offset the decline in sales, and the operating loss and other losses widened from the same period of the previous year. - FY2020MitigatedAnnual report
「Selling, general and administrative expenses decreased because development projects originally planned were postponed to the following fiscal year, resulting in operating income of ¥253 million, up 86.2% year on year.」
Higher selling, general and administrative expenses associated with development investment had put pressure on earnings in the previous fiscal year, but expenses decreased in the current year because development projects were postponed to the following fiscal year, resulting in higher operating income. - FY2020-Q3MitigatedAnnual report
「In terms of earnings, selling, general and administrative expenses decreased because development projects originally planned were postponed. Operating income was ¥190 million, up 14.7% year on year, ordinary income was ¥190 million, up 19.3%, and quarterly net income attributable to owners of the parent was ¥107 million, up 22.4%, all above the levels of the same period of the previous year.」
Selling, general and administrative expenses decreased as development projects were postponed, and operating income, ordinary income, and quarterly net income attributable to owners of the parent increased from the same period of the previous year. As a result, the impact on earnings of higher expenses associated with development investment has weakened. - FY2020-Q2MitigatedAnnual report
「In terms of earnings, selling, general and administrative expenses decreased because development projects originally planned for the first half were postponed to the second half. The operating loss was ¥30 million (operating loss of ¥169 million in the same period of the previous year), the ordinary loss was ¥34 million (ordinary loss of ¥171 million), and the quarterly net loss attributable to owners of the parent was ¥44 million (quarterly net loss attributable to owners of the parent of ¥133 million), representing an improvement from the same period of the previous year.」
Selling, general and administrative expenses decreased because some development projects were postponed to the second half, and the loss narrowed substantially from the same period of the previous year. As a result, the impact of higher expenses associated with development investment was weaker in the quarter. - FY2020-Q1MitigatedAnnual report
「In terms of earnings, lower selling, general and administrative expenses resulted in an operating loss of ¥238 million (operating loss of ¥239 million in the same period of the previous year) and an ordinary loss of ¥240 million (ordinary loss of ¥242 million in the same period of the previous year).」
Selling, general and administrative expenses decreased from the same period of the previous year, and the operating loss and ordinary loss were also lower than in the same period of the previous year. As a result, the impact of higher expenses on earnings in the quarter was weaker than in the first quarter of the previous fiscal year. - FY2019WorsenedAnnual report
「Mainly due to increased selling, general and administrative expenses resulting from stronger aggressive development investment, operating income was ¥136 million, down 40.7% year on year, ordinary income was ¥127 million, down 42.0%, and net income attributable to owners of the parent was ¥52 million, down 65.0%, all below the levels of the same period of the previous year.」
Selling, general and administrative expenses continued to increase due mainly to stronger aggressive development investment through the full year, and operating income, ordinary income, and net income attributable to owners of the parent fell below the levels of the same period of the previous year. - FY2019-Q3WorsenedAnnual report
「In terms of earnings, mainly due to increased selling, general and administrative expenses resulting from increased development investment, operating profit was ¥166 million, down 42.3% year on year, ordinary profit was ¥160 million, down 43.9%, and quarterly net income attributable to owners of the parent was ¥87 million, down 51.2%. The results were below those of the year-earlier period.」
Selling, general and administrative expenses increased due mainly to stronger aggressive development investment, and operating income, ordinary income, and quarterly net income attributable to owners of the parent fell below the levels of the same period of the previous year. - FY2019-Q2WorsenedAnnual report
「In terms of earnings, increased selling, general and administrative expenses, due mainly to increased development investment, resulted in an operating loss of ¥169 million, compared with an operating loss of ¥19 million in the year-earlier period; an ordinary loss of ¥171 million, compared with an ordinary loss of ¥19 million; and a quarterly net loss attributable to owners of the parent of ¥133 million, compared with a quarterly net loss attributable to owners of the parent of ¥24 million. The results were below those of the year-earlier period.」
Selling, general and administrative expenses continued to increase due mainly to stronger aggressive development investment, and the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent widened from the same period of the previous year. - FY2019-Q1MaterialisedAnnual report
「In terms of earnings, increased selling, general and administrative expenses due mainly to stronger aggressive development investment resulted in an operating loss of ¥239 million (operating loss of ¥144 million in the same period of the previous year), an ordinary loss of ¥242 million (ordinary loss of ¥143 million in the same period of the previous year), and a quarterly net loss attributable to owners of the parent of ¥176 million (quarterly net loss attributable to owners of the parent of ¥120 million in the same period of the previous year), all below the levels of the same period of the previous year.」
Selling, general and administrative expenses increased due mainly to stronger aggressive development investment, and the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent widened from the same period of the previous year.