Higher Personnel Expenses and Pressure on Profits from Workforce Expansion
First written in FY2019-Q1. 7 of 9 entries say "Materialised", first in FY2019-Q3. Latest entry: 2026-10-13.
Puequ moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2022: 2 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- 2026-10-13Materialisedfinance.yahoo.co.jp
「On the earnings front, in addition to the carryover of high-margin projects, costs associated with investments for growth, including depreciation expenses arising from the start-up of a new plant for equipment related to subcritical water treatment, costs to secure personnel, and expenses related to the acquisition of shares in a subsidiary, were incurred ahead of the anticipated benefits.」
Growth investment costs related to securing personnel were incurred ahead of schedule and were reported as specific expenses that weighed on earnings. - 2026-10-09MaterialisedEarnings forecast revision
「In addition to the carryover of relatively high-margin projects, the Company has been making investments for future growth, including the start-up of the new plant, securing personnel and acquiring shares in a subsidiary. As the resulting expenses were incurred ahead of the full-scale recognition of revenue and profit, operating profit and ordinary profit are expected to fall below the previously announced forecasts.」
Expenses associated with growth investments preceded the recognition of revenue and profit, resulting in downward revisions to the forecasts for operating profit and ordinary profit and putting pressure on expected earnings. - FY2025-H1MaterialisedAnnual report
「Meanwhile, the company is also focusing on developing its organizational structure and recruiting and training specialist personnel in preparation for developing overseas markets and creating next-generation business areas. Selling, general and administrative expenses have increased as a result, but these expenses are positioned as investments for future growth.」
Selling, general and administrative expenses increased due to the recruitment and training of specialist personnel and the development of an organizational structure for overseas market development and next-generation business areas. Segment profit in the environmental and energy business declined 10.6% year on year. - FY2024MaterialisedAnnual report
「Meanwhile, selling, general and administrative expenses increased as the Group invested in human resources for new businesses and its overseas strategy as part of its growth strategy. As a result, the rate of profit growth has slowed somewhat relative to the rate of sales growth.」
Higher selling, general and administrative expenses due to investments in human resources for new businesses and the overseas strategy materialized as slower profit growth relative to sales growth. - FY2024-Q3MitigatedAnnual report
「Meanwhile, in the third quarter, the company was able to absorb concerns about pressure on profit from higher personnel and other costs related to the development of its proprietary products by working through the substantial order backlog commissioned by existing and new customers, contributing to an improvement in the business performance of this business.」
The company explains that concerns about higher personnel and other costs associated with developing its proprietary products were absorbed by working through the order backlog. - FY2020-Q2MaterialisedAnnual report
「In addition to higher personnel costs due to the strengthening of the staffing structure, ¥20 million in extraordinary fees and other payments to an intermediary incurred in connection with the acquisition of 協立電機工業株式会社 was recorded in selling, general and administrative expenses for this segment. As a result, segment profit was ¥25 million, down 36.1% year on year.」
Higher personnel costs resulting from the strengthening of the staffing structure and ¥20 million in extraordinary expenses associated with the acquisition of 協立電機工業株式会社 resulted in segment profit of ¥25 million for the environmental and energy business, down 36.1% year on year. - FY2020-Q1MaterialisedAnnual report
「In addition to higher personnel costs due to the strengthening of the staffing structure, ¥20 million in extraordinary fees and other payments to an intermediary incurred in connection with the acquisition of 協立電機工業株式会社 was recorded in selling, general and administrative expenses for this segment. As a result, the segment posted a loss of ¥21 million, compared with a segment loss of ¥5 million in the same period of the previous year.」
Higher personnel costs due to the strengthening of the staffing structure continued, and acquisition-related expenses were added, resulting in a segment loss in the environmental and energy business. - FY2019-Q3MaterialisedAnnual report
「In addition, profit declined as personnel costs trended higher due to recruitment and other measures aimed at future growth.」
Higher personnel costs resulting from recruitment and other measures aimed at future growth have materialized as lower profit in the environmental and energy business. - FY2019-Q1First statedAnnual report
「Meanwhile, personnel expenses and other costs increased as the company implemented measures to strengthen its workforce, including hiring personnel with an eye to the future. Although revenue and profit remained within the planned range, profit declined compared with the same period of the previous year.」
For the first time, the internal cost risk that higher personnel and other costs resulting from staff expansion measures led to lower profit has been explicitly identified.