Declining profitability due to rising labor costs and insufficient productivity
First written in FY2024. 3 of 6 entries say "Worsened", first in FY2026-H1. Latest entry: 2026-08-12.
Hasegawa moved to the "Worse" side of this theme in 2025.
4 other companies' latest entry also says "Restated".
- 2026-08-12RestatedEarnings
「社会的要請に基づく人件費の上昇や人手不足の影響に対処し、少人数でも質の高い運営ができる効率的な運営体制への刷新に注力しております。」
人件費上昇・人手不足への対応を、効率的な運営体制への刷新として継続した。 - FY2026WorsenedAnnual report
「Building a more efficient operating framework in response to rising labor costs driven by societal demands and labor shortages resulting from intensifying competition for recruitment has become an urgent priority.」
Continued and made more specific the urgent management issue of declining profit margins due to rising labor costs and labor shortages, including intensifying competition for recruitment. - FY2026-H1WorsenedAnnual report
「Our group faces the challenge of declining profit margins due to rising labor costs in response to societal demands and staff shortages resulting from intensifying competition for recruitment, making the need to address this an urgent priority.」
In addition to the existing issues of rising labor costs and a persistently high labor cost ratio, intensifying recruitment competition and staff shortages were identified as factors behind declining profit margins, and the need to address them was deemed urgent. - FY2024First statedAnnual report
「Over the medium to long term, we recognize that costs have been rising across SG&A overall, weakening profitability. Labor costs in particular have been increasing, with the labor cost ratio remaining at a high level of more than 40%.」
For the first time, identified rising labor costs and a labor cost ratio above 40% as risks linked to declining profitability and the need to improve productivity.