Profit pressure from higher personnel expenses and other costs in the packaging and testing business
First written in FY2019-Q1. 7 of 17 entries say "Mitigated", first in FY2019. Latest entry: FY2026.
NIKKON Holdings moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Packaging Business Net sales were ¥57,648 million, up 0.5% year on year. Operating income was ¥4,429 million, up 4.3%, due to improved operating efficiency and lower outsourcing costs.\nTesting Business Net sales rose 1.7% year on year to ¥24,569 million due to an increase in workload. Operating income was ¥4,016 million, up 0.7%, despite higher personnel expenses and depreciation of new testing equipment.」
In the packaging business, the pressure on profit eased due to lower outsourcing costs and efficiency improvements, while in the testing business, higher labor costs and depreciation of new equipment continued to affect profit. - FY2026-H1WorsenedAnnual report
「(Testing business) Due to higher operating volumes, revenue was ¥11,905 million, up 2.2% year on year. Operating profit was ¥1,690 million, down 5.5% year on year, due to higher labor costs and depreciation of testing equipment.」
Despite higher operating volumes and revenue in the testing business, profit decreased due to higher labor costs and depreciation of testing equipment, with cost pressure on profit again appearing in the results. - FY2024-Q3MitigatedAnnual report
「(Packaging business) Net sales increased 9.8% year on year to ¥40.274 billion owing to the recovery in business volume and other factors. Operating profit increased 10.0% to ¥2.362 billion owing to improved work efficiency and other factors. (Testing business) Net sales increased 8.6% year on year to ¥16.825 billion, mainly owing to the recovery in business volume. Operating profit increased 72.2% to ¥2.490 billion owing to the effect of higher sales and improved operating efficiency.」
In the packaging and testing businesses, where higher labor and outsourcing costs had reduced profit through the previous quarter, both businesses shifted to higher profit due to improved work efficiency, the effect of higher revenue and improved operating efficiency, easing the pressure on profit. - FY2024-Q2MitigatedAnnual report
「(Packaging business) Net sales increased 10.3% year on year to ¥26.333 billion owing to the recovery in business volume and other factors. Operating profit increased 34.6% to ¥1.490 billion owing to improved work efficiency and other factors. (Testing business) Net sales increased 5.8% year on year to ¥10.791 billion, mainly owing to the recovery in business volume. Operating profit increased 78.4% to ¥1.472 billion owing to the effect of higher sales and improved operating efficiency.」
In the packaging business, improved work efficiency, and in the testing business, the effect of higher revenue and improved operating efficiency, meant that the pressure on profit from higher labor and outsourcing costs seen through the previous period was not prominent in the current quarter, and both businesses reported higher profit. - FY2023-Q3Higher revenue absorbed cost increases in the packaging business, while cost increases continued in the testing businessAnnual report
「(Packaging business) Net sales increased 12.1% year on year to ¥36.678 billion owing to the recovery in business volume and other factors. Despite higher outsourcing expenses, operating profit increased 7.2% to ¥2.148 billion owing to the effect of higher sales and other factors. (Testing business) Net sales decreased 3.9% year on year to ¥15.492 billion owing to cancellations or postponements of testing work. Operating profit decreased 46.5% to ¥1.446 billion owing to higher personnel and outsourcing expenses and other factors.」
Although outsourcing costs continued to increase in the packaging business, profit increased due to the effect of higher revenue. In contrast, higher labor and outsourcing costs continued to reduce profit in the testing business. - FY2023-Q2RestatedAnnual report
「(Packaging business) Operating profit was ¥1,107 million, down 22.5% year on year, due to higher labor and outsourcing costs, among other factors. (Testing business) Operating profit was ¥825 million, down 45.8% year on year, due to higher labor and outsourcing costs, among other factors.」
Higher labor and outsourcing costs continued to reduce profit in both the packaging and testing businesses. Although the rate of decline narrowed in the packaging business, the testing business continued to report a significant decline, down 45.8% year on year. - FY2023-Q1WorsenedAnnual report
「(Packaging business) Operating profit was ¥344 million, down 57.6% year on year, due to higher labor and outsourcing costs, among other factors.」「(Testing business) Operating profit was ¥401 million, down 45.9% year on year, due to higher labor costs, among other factors.」
Labor and outsourcing costs, among others, which had decreased in the previous period, again reduced profit in both businesses. Profit decreased 57.6% year on year in the packaging business and 45.9% in the testing business. - FY2021MitigatedAnnual report
「In the packaging business, operating volumes decreased significantly due mainly to the spread of COVID-19 and other factors, resulting in revenue of ¥40,136 million, down 14.4% from the previous fiscal year. Despite decreases in labor and outsourcing costs, among others, operating profit was ¥2,365 million, down 36.2% from the previous fiscal year, due to the effect of lower revenue.」
Although labor and outsourcing costs, among others, decreased and progress was made in addressing the previous cost increases, the packaging business reported lower profit because it could not offset lower operating volumes and revenue. - FY2021-Q3MitigatedAnnual report
「Operating profit decreased 45.9% year on year to ¥1,452 million, affected by lower revenue, despite decreases in labor and outsourcing costs.」
The packaging business reduced labor and outsourcing costs, making progress in addressing the previous pressure on profit from higher labor and other costs. However, operating profit decreased because these reductions could not offset lower operating volumes and revenue. - FY2021-Q1MitigatedAnnual report
「Operating profit was a loss of ¥23 million, despite reductions in labor and outsourcing costs.」
The packaging business reduced labor and outsourcing costs, addressing the previous cost increases. However, it was unable to offset the impact of lower operating volumes and recorded an operating loss. - FY2020ReframedAnnual report
「Packaging business Due mainly to lower operating volumes related to the automotive industry, revenue decreased 0.6% year on year to ¥46,882 million. Operating profit decreased 7.4% year on year to ¥3,705 million, due to the effect of lower revenue, among other factors.」
Unlike the higher labor and outsourcing costs identified as factors behind lower profit in the packaging and testing businesses in the previous fiscal year, the main factors reducing profit in the packaging business in the current fiscal year were lower operating volumes related to the automotive industry and lower revenue. - FY2020-Q3WorsenedAnnual report
「Operating profit decreased 6.5% year on year to ¥2,682 million, due to higher labor and outsourcing costs associated with the increase in personnel, among other factors.」
Although both the packaging and testing businesses reported higher profit in the cumulative period of the previous quarter, higher labor and outsourcing costs associated with increased personnel again reduced profit in the packaging business during the cumulative period of the current quarter. - FY2020-Q2MitigatedAnnual report
「(Packaging business) Net sales increased 5.8% year on year to ¥24.053 billion owing to higher business volume. Operating profit increased 9.2% to ¥1.862 billion owing to improved operating efficiency and other factors. (Testing business) Net sales increased 5.5% year on year to ¥11.290 billion owing to higher business volume. Operating profit increased 32.4% to ¥2.149 billion owing to the effect of higher sales, improved operating efficiency and other factors.」
Both the packaging and testing businesses reported higher profit for the cumulative period of the quarter, shifting from the previous fiscal year's situation, in which higher labor and outsourcing costs, among others, pressured profit, to one in which efficiency improvements and the effect of higher revenue supported profit. - FY2019MitigatedAnnual report
「Operating profit increased 2.0% year on year to ¥4,001 million, despite higher outsourcing and other costs, due to the effect of higher revenue and improved operating efficiency, among other factors.」
Although higher outsourcing and other costs continued in the packaging business, full-year operating profit increased due to the effect of higher revenue and improved operating efficiency. The pressure on profit from labor and outsourcing costs seen from the first through third quarters eased on a full-year basis. - FY2019-Q3The rate of decline in profit narrowedAnnual report
「(Packaging business) Net sales increased 6.6% year on year to ¥35.032 billion owing to higher business volume. Operating profit decreased 3.3% to ¥2.869 billion owing to higher personnel and outsourcing expenses and other factors. (Testing business) Net sales increased 1.3% year on year to ¥16.410 billion owing to higher business volume. Operating profit decreased 3.2% to ¥2.777 billion owing to higher personnel expenses associated with an increase in staff and other factors.」
Although labor and outsourcing costs, as well as higher labor costs associated with increased personnel, continued to reduce profit, the rates of decline narrowed in the packaging business from 5.9% to 3.3% and in the testing business from 12.2% to 3.2%. - FY2019-Q2WorsenedAnnual report
「(Packaging business) Operating profit decreased 5.9% year on year to ¥1,705 million, due to higher labor and outsourcing costs, among other factors. (Testing business) Operating profit decreased 12.2% year on year to ¥1,623 million, due to higher labor costs associated with the increase in personnel, among other factors.」
Higher labor and outsourcing costs in the packaging business and higher labor costs associated with increased personnel in the testing business continued to reduce profit, and the rates of decline widened from the previous quarter's decreases of 2.8% and 9.0%, respectively. - FY2019-Q1First statedAnnual report
「Operating profit decreased 2.8% year on year to ¥763 million, due to higher labor and outsourcing costs, among other factors. d. Testing business Due to higher operating volumes, revenue increased 2.1% year on year to ¥5,353 million. Operating profit decreased 9.0% year on year to ¥831 million, due to higher labor costs associated with the increase in personnel, among other factors.」
In the packaging business, labor and outsourcing costs, and in the testing business, higher labor costs associated with increased personnel, were separately identified for the first time as actual factors behind the decline in operating profit.