Margin improvement through sales price revisions and a lower temporary staffing ratio
First written in FY2024-Q1. 5 of 9 entries say "Advanced", first in FY2024-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2017: 3 of 20 companies on the "Worse" side.
21 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「As announced in the "Short-Term Plan" disclosed in May 2025, the company consolidated and closed some locations and redeployed personnel during the first half of 2025. The resulting reductions in fixed costs, such as rent, and indirect personnel costs in corporate and other functions led to an improvement in the operating profit margin.」
Reductions in fixed costs and indirect personnel costs through the consolidation and closure of locations and personnel redeployment led to an improvement in the full-year operating profit margin, and operating profit increased by 9.1% year on year. - 2026-07-13ReframedRevision of earnings forecasts
「Improving profit margins is also an important issue. While maintaining the benefits of the reduction in the indirect personnel expense ratio implemented in the fiscal year ending May 2026, we will continue to develop an appropriate organizational structure aligned with revenue levels, improve productivity by increasing the use of AI to enhance the efficiency of business processes and pursue sustained improvement in profit margins.」
The means of improving profit margins have been expanded from maintaining the benefits of lower indirect personnel expenses to include improving business-process efficiency through AI and developing an appropriate organizational structure. - FY2026-H1AdvancedAnnual report
「With respect to operating expenses, the Group is optimizing costs in line with revenue levels and has implemented measures to curb the ratio of indirect personnel expenses in accordance with the Short-Term Plan disclosed on 29 May 2025. It also completed restructuring to optimize total seating capacity at its locations during the current interim consolidated accounting period in accordance with the same plan.」
To improve margins, the company restrained indirect personnel costs, optimized total seating capacity across its locations and completed its restructuring. Although reductions in SG&A expenses through lower indirect personnel costs progressed, profit declined in the current interim period due to lower revenue and temporary optimization costs. - FY2025WorsenedAnnual report
「The company was unable to absorb the increase in fixed costs, such as rent, resulting from the increase in the number of operating booths, or the increase in indirect personnel costs in corporate and other functions, relative to the decline in revenue. This led to a deterioration in the operating profit margin.」
Unlike the margin improvement achieved through sales price revisions and a lower temporary staffing ratio through the previous fiscal year, the company was unable to absorb fixed costs and indirect personnel costs against the decline in revenue during the current fiscal year, resulting in a deterioration in the operating profit margin. - FY2025-H1WorsenedAnnual report
「Operating profit declined by ¥548 million year on year. In addition to the decline in revenue, investment in personnel and equipment made under the growth plan increased fixed costs and SG&A expenses as a percentage of revenue, resulting in a deterioration in the operating profit margin.」
Growth investments in personnel and equipment increased fixed costs and SG&A expenses as a percentage of revenue, and the operating profit margin deteriorated alongside the decline in revenue. Unlike the margin improvement trend reported through the previous fiscal year, the current interim period included factors causing deterioration. - FY2024AdvancedAnnual report
「At the same time, the company reduced its use of temporary staffing to lower the cost-of-sales ratio and worked to improve productivity through digital technology. As a result, the cost-of-sales ratio for the current consolidated fiscal year was 84.1%, down 0.6 percentage points from the previous consolidated fiscal year, while gross profit was ¥6,066 million, or 112.4% of the previous year's level.」
Reduced use of temporary staffing and productivity improvements through digital technology brought the cost-of-sales ratio to 84.1%, down 0.6 percentage points year on year. - FY2024-Q3AdvancedAnnual report
「During the first 9 months of the current consolidated fiscal year, profit increased along with revenue growth, while intensified efforts to revise the sales prices of certain services and reduce the temporary staffing ratio contributed to an improvement in the gross profit margin. In addition, the SG&A expense ratio declined as a result of lower R&D and other expenses, raising the operating profit margin by 1.2 points year on year.」
Gross profit margin, SG&A expense ratio and operating profit margin improved through sales price revisions, a lower temporary staffing ratio, and reductions in R&D and other expenses. The operating profit margin rose by 1.2 points year on year. - FY2024-Q2AdvancedAnnual report
「During the first 6 months of the current consolidated fiscal year, profit increased along with revenue growth, while intensified efforts to revise the sales prices of certain services and reduce the temporary staffing ratio contributed to margin improvement.」
The company has intensified efforts to revise sales prices and reduce the temporary staffing ratio, and has disclosed their contribution to margin improvement. - FY2024-Q1First statedAnnual report
「In the current quarter, profit increased along with solid revenue growth, while profit margins also improved as a result of revising the sales prices of certain services and reducing the temporary staffing ratio, resulting in higher profit.」
The revision of sales prices for certain services and the reduction of the temporary staffing ratio have been recorded independently for the first time as specific measures that contributed to margin improvement.