Higher Goodwill Amortization and SG&A Expenses from Acquisitions, Location Expansion and Headcount Growth
First written in FY2020. 6 of 24 entries say "Worsened", first in FY2026-H1. Latest entry: FY2027-H1.
Wakita & moved to the "Worse" side of this theme in 2025.
1 other company's latest entry also says "Other".
- FY2027-H1Operating profit increased despite higher SG&A expensesAnnual report
「Selling, general and administrative expenses 10,469 11,809 Operating profit 2,558 2,670」
SG&A expenses increased from ¥10.469 billion in the same period of the previous year to ¥11.809 billion, while operating profit rose from ¥2.558 billion to ¥2.670 billion, owing in part to higher gross profit. - FY2026WorsenedAnnual report
「As SG&A expenses increased by ¥1,592 million, operating income was ¥5,282 million, down 17.3% year on year.」
SG&A expenses increased, including the costs associated with investment in human resources, upfront investment and the consolidation of CareRex, resulting in a 17.3% year-on-year decline in operating profit. - FY2026-H1WorsenedAnnual report
「Selling, general and administrative expenses 9,697 million yen 10,469 million yen Operating income 2,792 million yen 2,558 million yen」
While SG&A expenses increased from ¥9,697 million in the same period of the previous year to ¥10,469 million, operating income declined to ¥2,558 million, down 8.4% year on year, as the cost burden increased. - FY2025-Q1Higher operating profit despite increased SG&A expensesAnnual report
「Although SG&A expenses increased from ¥4,207 million to ¥4,921 million, operating income was ¥1,560 million, up 6.5% year on year.」
While SG&A expenses continued to increase due to subsidiaries, higher headcount, upfront investment and other factors, operating income increased in the first quarter as a result of higher gross profit. - FY2024Operating income declined despite higher selling, general and administrative expensesAnnual report
「In terms of earnings, as revenue increased, gross profit rose by ¥3,367 million. However, as SG&A expenses increased by ¥3,591 million, operating income was ¥5,541 million, down 3.9% year on year.」
Although gross profit increased, SG&A expenses, including those associated with subsidiaries, higher headcount and upfront investment, increased by ¥3,591 million, resulting in a 3.9% year-on-year decline in operating income. - FY2024-Q3Operating income decline amid continued increases in SG&A expenses and goodwill amortizationAnnual report
「Selling, general and administrative expenses 11,534 13,885 Goodwill amortization 834 942」
Year on year, SG&A expenses increased by ¥2,351 million and goodwill amortization by ¥108 million. Operating income declined 3.1% amid the continuing cost burden associated with subsidiaries, higher headcount, upfront investment and other factors. - FY2024-Q2Higher cost burden associated with subsidiaries and upfront investmentAnnual report
「During the first quarter of the current consolidated accounting period, 大喜産業株式会社, previously treated as a non-consolidated subsidiary, was included in the scope of consolidation to enhance the disclosure of consolidated financial results. In addition, 大裕株式会社 and 株式会社ニチイケアネット (now 株式会社ワキタケアネット) became consolidated subsidiaries through the acquisition of their shares. As a result, the number of employees in the Group increased by 373.」
The increase in employees associated with newly consolidated subsidiaries and other subsidiaries reached 373. SG&A expenses also increased from ¥7,625 million in the same period of the previous year to ¥9,087 million, and the cost burden associated with subsidiaries, higher headcount and upfront investment continues. - FY2024-Q1Higher SG&A expenses and goodwill balanceAnnual report
「Selling, general and administrative expenses 3,744 4,207 Goodwill amortization 278 278」
Year on year, SG&A expenses increased from ¥3,744 million to ¥4,207 million. Although the goodwill balance increased from ¥6,070 million at the end of the previous fiscal year to ¥10,829 million due to the addition of a new subsidiary, goodwill amortization for the quarter remained unchanged from the same period of the previous year at ¥278 million. - FY2023Operating income growth despite continued increases in SG&A expensesAnnual report
「As revenue increased, gross profit rose by ¥1,530 million. However, as SG&A expenses increased by ¥1,271 million, operating income was ¥5,765 million, up 4.7% year on year.」
While SG&A expenses continue to increase due to investment in human resources, operating locations, rental assets and other areas, operating income rose 4.7% year on year as a result of higher gross profit. - FY2023-Q3Operating income growth despite continued increases in SG&A expensesAnnual report
「In terms of earnings, SG&A expenses increased due to high levels of investment in rental assets with a view to the future and securing personnel to advance the human resources strategy. Nevertheless, operating income was ¥4,396 million, up 2.8% year on year, ordinary income was ¥4,511 million, up 2.6%, and net income attributable to owners of the parent for the quarter was ¥2,763 million, up 11.4%.」
Although SG&A expenses continue to increase due to high levels of investment in rental assets and securing personnel, operating income, ordinary income and net income all exceeded the same period of the previous year in the cumulative third quarter. - FY2023-Q2RestatedAnnual report
「In terms of earnings, operating income was ¥2,703 million, down 6.0% year on year, partly due to the proactive increase in SG&A expenses resulting from high levels of investment in rental assets with a view to the future and securing personnel to advance the human resources strategy.」
Higher SG&A expenses due to high levels of investment in rental assets and securing personnel to advance the human resources strategy continue to represent a cost burden weighing on operating income. - FY2023-Q1RestatedAnnual report
「While actively increasing the number of employees and personnel expenses, we are also pursuing our human resources strategy, including human resources development and investment, to build the foundation for the future.」
The company has reaffirmed its policy of actively increasing its workforce, personnel expenses, and human resources development and investment, and the cost burden associated with investment in human resources remains an ongoing theme. - FY2022Higher SG&A expenses due to investment in human resources and other factorsAnnual report
「As revenue increased, gross profit rose by ¥1,217 million. However, as SG&A expenses increased by ¥1,134 million, operating income was ¥5,506 million, up 1.5% year on year.」
Gross profit increased by ¥1,217 million, while SG&A expenses also increased by ¥1,134 million. Expanded investment in human resources and other factors were cited as weighing on operating income growth. - FY2022-Q3Continued increase in SG&A expensesAnnual report
「Selling, general and administrative expenses 9,830 10,509」
SG&A expenses increased from ¥9,830 million in the same period of the previous year to ¥10,509 million, with the cost burden continuing to rise. - FY2022-Q2Continued increase in SG&A expensesAnnual report
「Selling, general and administrative expenses 6,496 million yen 6,938 million yen」
Year on year, SG&A expenses increased from ¥6,496 million to ¥6,938 million. - FY2021Full-year increase in SG&A expenses and goodwill amortization burdenAnnual report
「However, as SG&A expenses increased by ¥871 million, operating income was ¥5,422 million, down 7.9% year on year.」
SG&A expenses, including costs associated with subsidiaries and other factors, increased by ¥871 million for the full year, weighing on operating income. Goodwill amortization also increased from ¥788 million in the previous fiscal year to ¥1,090 million. - FY2021-Q3Continued increase in SG&A expenses and goodwill amortizationAnnual report
「Selling, general and administrative expenses 9,060 9,830 Depreciation and amortization 3,423 3,690 Goodwill amortization 552 818」
Year on year, SG&A expenses increased from ¥9,060 million to ¥9,830 million, and goodwill amortization increased from ¥552 million to ¥818 million, with the cost burden associated with subsidiaries and other factors continuing to rise. - FY2021-Q2Continued increase in SG&A expenses and goodwill amortizationAnnual report
「Selling, general and administrative expenses 5,789 6,496 Goodwill amortization 330 545」
Year on year, SG&A expenses increased from ¥5,789 million to ¥6,496 million, and goodwill amortization increased from ¥330 million to ¥545 million. - FY2021-Q1Continued increase in goodwill amortization and SG&A expense burdenAnnual report
「Selling, general and administrative expenses 2,795 3,173 Depreciation and amortization 1,123 1,218 Goodwill amortization 165 272」
Year on year, SG&A expenses increased from ¥2,795 million to ¥3,173 million, and goodwill amortization increased from ¥165 million to ¥272 million. - FY2020First statedAnnual report
「However, selling, general and administrative expenses increased due to goodwill amortization associated with the consolidation of subsidiaries, the expansion of operating locations, and the increase in the number of employees. As a result of the ¥2,674 million increase in SG&A expenses, operating income was ¥5,889 million, down 7.7% year on year.」
Goodwill amortization and SG&A expense increases associated with multiple subsidiaries, expanded operating locations and higher headcount actually occurred and contributed to the decline in operating income.