Decline in profit in the Corporate Services business due to higher costs such as outsourcing expenses
First written in FY2019-Q3. 5 of 11 entries say "Mitigated", first in FY2022-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2019: 3 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In the Corporate Services business, revenue was ¥670 million (down 20.2% year on year) and the segment loss (operating loss) was ¥4 million, an improvement of ¥22 million year on year, due to efforts to substantially restructure and streamline the business and the resulting restructuring costs.」
Restructuring costs associated with the business restructuring and streamlining increased and were cited as factors behind the decline in revenue and the segment loss. However, the loss improved by ¥22 million from the previous fiscal year. - 2026-05-08MitigatedRevision of earnings forecasts
「Due to efforts to significantly restructure and streamline the business, as well as the resulting increase in restructuring costs, net sales were ¥670 million, down 20.2% year on year, and the segment loss, or operating loss, was ¥4 million, an improvement of ¥22 million from the previous fiscal year.」
Restructuring costs arose from the restructuring and streamlining, but the Corporate Services Business reduced its loss from ¥26 million in the previous fiscal year to ¥4 million. - FY2024MitigatedAnnual report
「In the corporate services business, inquiries increased, mainly from existing clients, due to measures including strengthening the sales structure and developing management personnel. Revenue was ¥996 million, up 4.5% from the previous fiscal year, and segment profit (operating profit) was ¥82 million, up 24.6%, resulting in higher revenue and higher profit.」
The Corporate Services business, which experienced lower earnings due to higher marketing and personnel costs in the previous fiscal year, achieved higher revenue and earnings in the current fiscal year, and the impact of those cost factors on earnings was mitigated. - FY2023WorsenedAnnual report
「In the Corporate Services business, sales increased, driven mainly by existing key customers, while higher marketing expenses and personnel costs resulted in revenue of ¥954 million (up 11.6% year on year) and segment profit (operating profit) of ¥65 million (down 24.6%).」
Although sales from existing key customers increased, personnel costs rose in addition to marketing expenses, and full-year segment profit declined 24.6%. Lower earnings due to higher costs were confirmed for the full year. - FY2023-Q3WorsenedAnnual report
「In the corporate services business, orders increased, mainly from existing clients, around the middle of the period. However, higher marketing expenses and personnel costs resulted in revenue of ¥599 million, up 6.4% year on year, and segment profit (operating profit) of ¥27 million, down 48.4%.」
Although orders from existing customers increased, personnel costs also rose in addition to the previous increase in marketing expenses, and segment profit declined 48.4% year on year. The risk of lower earnings due to higher costs is increasing. - FY2023-Q2Lower earnings due to higher marketing expensesAnnual report
「In the corporate services business, orders increased, mainly from existing clients, while higher marketing expenses and other factors resulted in revenue of ¥396 million, up 23.0% year on year, and segment profit (operating profit) of ¥9 million, down 36.3%.」
Although orders from existing customers, mainly, increased, segment profit declined 36.3% year on year due to cost factors including higher marketing expenses. - FY2022MitigatedAnnual report
「In the corporate services business, revenue from new clients increased from the second half in addition to revenue from major clients, and the recovery trend became increasingly evident due to cost reductions and the effects of developing management talent. Revenue was ¥854 million, up 25.4% year on year, and segment profit (operating profit) was ¥87 million, 11.3 times the previous fiscal year’s level.」
Cost reductions and higher customer sales led to a recovery from the decline in earnings caused by higher outsourcing and other costs, and segment profit improved significantly. - FY2022-Q3MitigatedAnnual report
「In the corporate services business, revenue increased from both major and new clients, and together with cost reductions initiated at the beginning of the period, the recovery trend became more pronounced. Revenue was ¥563 million, up 22.6% year on year, and segment profit (operating profit) was ¥53 million, compared with a segment loss of ¥13 million in the previous year.」
Cost reductions from the beginning of the period and higher customer sales eased the previous situation in which higher costs, including outsourcing expenses, reduced earnings, and profit improved from a loss to ¥53 million. - FY2022-Q2MitigatedAnnual report
「In the corporate services business, the recovery trend from the second half of the previous consolidated fiscal year was maintained. A certain level of commissioned projects was secured, mainly from major clients, and cost reductions also contributed. Revenue was ¥322 million, up 19.7% year on year, and segment profit (operating profit) was ¥14 million, compared with a segment loss of ¥26 million in the previous year.」
Cost reductions and the securing of contracted projects eased the situation in which higher costs, including outsourcing expenses, had previously reduced earnings, and segment profit improved from a loss to ¥14 million. - FY2019MaterialisedAnnual report
「In the Corporate Services business, although sales from new customers increased, higher costs including outsourcing expenses resulted in higher revenue but lower earnings, with revenue of ¥717 million (up 5.4% year on year) and segment profit (operating profit) of ¥24 million (down 27.8%).」
Although higher costs, including outsourcing expenses, were incurred throughout the year and sales from new customers increased, segment profit declined 27.8% year on year. - FY2019-Q3First statedAnnual report
「In the corporate services business, revenue from new clients increased, but higher costs, including outsourcing expenses, had an impact, resulting in revenue of ¥552 million, up 3.3% year on year, and segment profit (operating profit) of ¥27 million, down 24.4% year on year, meaning higher revenue but lower profit.」
Despite an actual increase in outsourcing and other costs and higher sales from new customers, segment profit in the Corporate Services business declined 24.4% year on year.