Profit pressured by the expiration of subsidies and costs related to new store openings
First written in FY2023-Q2. 6 of 10 entries say "Worsened", first in FY2023-Q3. Latest entry: FY2026-H1.
On The Page moved to the "Worse" side of this theme in 2023, 5 years after the typical company in this theme (2018).
The whole theme swung hardest in 2026: 4 of 7 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026-H1ReframedAnnual report
「Revenue for the current interim consolidated accounting period was ¥16,807 million, up 73.2% year on year, due to higher revenue from weddings resulting from increases in the number of weddings held and revenue per wedding, as well as higher general-dining revenue in the restaurant-focused business. Although selling, general and administrative expenses increased due to higher consumables expenses associated with new openings and merger-related costs, operating profit was ¥735 million, up 49.7% year on year, interim profit before tax was ¥361 million, up 29.1%, and interim profit was ¥318 million, up 47.1%.」
The factors pressuring earnings expanded from general new-store costs to include consumables expenses associated with new openings and merger-related costs. Operating profit, interim profit before tax and interim profit all increased year on year. - 2026-05-15WorsenedEarnings
「On the profit side, the operating loss was ¥35 million, compared with a loss of ¥155 million in the same period of the previous year, as selling, general and administrative expenses increased due to higher consumables costs associated with new store openings and merger-related expenses.」
New store opening costs and merger-related expenses were identified as factors behind the increase in selling, general and administrative expenses. At the same time, the operating loss narrowed from the same period of the previous year. - FY2025ReframedAnnual report
「On the earnings side, higher opening costs, including recruitment and consumables expenses related to new openings in Japan and Vietnam, resulted in a segment loss of ¥18 million, compared with a profit of ¥43 million in the prior-year period.」
The focus shifted from subsidy losses and general new-store costs to opening costs for new restaurant locations in Japan and Vietnam. Consolidated operating profit, however, increased 68.1% year on year. - FY2025-H1WorsenedAnnual report
「On the earnings side, higher opening costs, including recruitment and consumables expenses related to new openings, resulted in a segment loss of ¥47 million, compared with a profit of ¥17 million in the prior-year period.」
Recruitment and consumables expenses associated with new openings continued to pressure earnings, turning the restaurant-focused business from a prior-year profit into a loss. - FY2024WorsenedAnnual report
「Selling, general and administrative expenses increased due to higher personnel and depreciation expenses related to new stores, higher advertising expenses to improve customer acquisition and the recognition of ¥380 million in impairment losses caused by deteriorating profitability at certain stores. As a result, operating profit was ¥1,337 million, down 13.1% year on year, profit before tax was ¥975 million, down 20.7%, and profit for the year was ¥663 million, down 29.5%.」
In addition to new-store and advertising costs, ¥380 million in impairment losses arose from deteriorating profitability at certain stores, reducing operating profit, profit before tax and profit for the year. - FY2024-H1WorsenedAnnual report
「Selling, general and administrative expenses increased due to higher personnel and depreciation expenses related to new stores and higher advertising expenses to improve customer acquisition. As a result, operating profit was ¥111 million, down 60.2% year on year, interim loss before tax was ¥26 million, compared with profit of ¥121 million in the prior-year period, and interim loss attributable to owners of the parent was ¥20 million, compared with profit of ¥71 million.」
Higher personnel and depreciation expenses for new stores and higher advertising expenses reduced operating profit 60.2% year on year and turned profit before tax and profit attributable to owners of the parent into losses. - FY2024-Q1ReframedAnnual report
「Selling, general and administrative expenses increased due to higher personnel expenses associated with the increase in staff hired as an upfront investment for sustainable growth and higher advertising expenses to improve customer acquisition. As a result, operating loss was ¥333 million, compared with a loss of ¥383 million in the prior-year period, loss before tax was ¥394 million, compared with a loss of ¥480 million, and quarterly loss was ¥259 million, compared with a loss of ¥323 million.」
The focus shifted from the loss of subsidies and new-store fixed costs to upfront investment in recruitment and advertising for sustainable growth. Losses narrowed from the prior-year period. - FY2023WorsenedAnnual report
「Operating profit was ¥1,539 million, down 44.5% year on year, profit before tax was ¥1,230 million, down 50.5%, and profit for the year was ¥942 million, down 43.1%, as selling, general and administrative expenses increased because ¥268 million in subsidies related to shortened operating hours received during the previous consolidated fiscal year and ¥292 million in employment adjustment subsidies were no longer received, while personnel expenses increased due to the resumption of graduate recruitment to secure staff for new openings and other purposes, and fixed costs related to new stores also increased.」
In addition to the loss of subsidies, higher personnel expenses following the resumption of graduate recruitment and higher fixed costs for new stores were identified as factors pressuring earnings. - FY2023-Q3WorsenedAnnual report
「Operating profit was ¥104 million, down 91.3% year on year, while the company recorded a quarterly loss before tax of ¥126 million, compared with profit of ¥981 million in the prior-year period, and a quarterly loss of ¥91 million, compared with profit of ¥661 million. This reflected the loss of ¥287 million in employment adjustment subsidies and ¥268 million in cooperation subsidies for preventing the spread of infection related to shortened operating hours received during the cumulative third quarter of the previous fiscal year, a ¥96 million increase in selling, general and administrative expenses due to consumables and other costs associated with new stores opened during the current cumulative third quarter, ¥32 million in listing-related expenses, and a ¥16 million impairment loss recognized on property, plant and equipment at certain stores.」
In addition to the loss of subsidies and new-store and listing-related costs, impairment losses were incurred. Operating profit fell sharply, and profit before tax and quarterly profit turned into losses. - FY2023-Q2MaterialisedAnnual report
「Operating profit was ¥279 million, down 65.8% year on year, profit before tax was ¥121 million, down 82.3%, and profit for the quarter was ¥71 million, down 84.4%, because employment adjustment subsidies of ¥245 million and cooperation subsidies for preventing the spread of infection related to shortened operating hours of ¥229 million, among others, received during the cumulative second quarter of the previous fiscal year were no longer received, while selling, general and administrative expenses increased by ¥96 million due to consumables and other costs associated with new stores opened during the cumulative second quarter of the current fiscal year and ¥25 million in listing-related expenses was incurred.」
The decline in profit measures is shown in both absolute and year-on-year terms, with the loss of prior-year subsidies, new-store costs and listing-related expenses identified as factors.