Higher Costs and Declining Profits Associated with Business Expansion, Listing, Relocation to a New Head Office, etc.
First written in FY2023-Q3. 4 of 10 entries say "Worsened", first in FY2026-H1. Latest entry: 2026-08-07.
Business Coach moved to the "Worse" side of this theme in 2026, 5 years after the typical company in this theme (2021).
The whole theme swung hardest in 2026: 19 of 79 companies on the "Worse" side.
15 other companies' latest entry also says "Worsened".
- FY2026-H1WorsenedAnnual report
「As a result, revenue for the interim consolidated accounting period was ¥740 million, down 23.3% year on year; operating loss was ¥55 million, compared with operating profit of ¥88 million in the same interim period of the previous year; ordinary loss was ¥54 million, compared with ordinary profit of ¥99 million; and interim net loss attributable to owners of the parent was ¥40 million, compared with interim net profit attributable to owners of the parent of ¥62 million.」
Operating profit, ordinary profit and interim net profit attributable to owners of the parent in the previous interim period turned into an operating loss of ¥55 million, ordinary loss of ¥54 million and interim net loss of ¥40 million, respectively, in the interim period under review. - FY2025Higher profit on revenue growthAnnual report
「As a result, revenue for the consolidated fiscal year was ¥2,003 million, up 25.2% year on year; operating profit was ¥163 million, up 105.1%; ordinary profit was ¥178 million, up 125.8%; and net profit attributable to owners of the parent was ¥123 million, up 127.7%.」
Despite higher costs, including investments in recruitment and marketing, revenue exceeded plan, causing operating profit, ordinary profit and net profit to shift from declines in the previous fiscal year to substantial increases. - FY2025-H1Profit improvement despite higher costsAnnual report
「As a result, revenue for the interim consolidated accounting period was ¥965.238 million, up 19.9% year on year; operating profit was ¥88.970 million, up 199.8%; ordinary profit was ¥99.816 million, up 234.1%; and interim net profit attributable to owners of the parent was ¥62.875 million, up 207.5%.」
Selling, general and administrative expenses increased from ¥471.512 million in the same period of the previous year to ¥517.644 million, but operating profit rose 199.8% year on year on higher revenue, marking a shift from profit declines caused by higher costs to profit improvement. - FY2024AdvancedAnnual report
「The cost of sales ratio deteriorated, and gross profit was ¥973.035 million, due mainly to higher payments to partner coaches as the sales mix shifted toward business leader and business professional coaching, as well as projects covering services beyond human resources development in which the use of external consultants resulted in a higher cost ratio.」
Despite business expansion following consolidation, the cost ratio deteriorated due to partner coach fees and the use of external consultants. Full-year operating profit was ¥79.888 million. - FY2024-Q2AdvancedAnnual report
「Selling, general and administrative expenses were ¥471.512 million. This was mainly due to higher personnel expenses and operating expenses associated with business expansion, as well as higher rent under the lease agreement for the new headquarters relocated to in May 2023. As a result, operating profit was ¥29.677 million.」
For the first half, SG&A expenses were ¥471.512 million, reflecting higher personnel and operating expenses associated with business expansion and higher rent for the new headquarters, while operating profit was ¥29.677 million. - FY2023AdvancedAnnual report
「Revenue was ¥1,155.988 million, up ¥7.830 million, or 0.7%, from the same period of the previous year. Operating profit was ¥83.079 million, down ¥163.234 million, or 66.3%, year on year.」
Full-year revenue increased only 0.7% year on year, while operating profit fell 66.3% due to higher listing costs, headquarters relocation expenses, personnel expenses and other costs. - FY2023-Q3First statedAnnual report
「Selling, general and administrative expenses were ¥523.978 million, up 32.2% year on year. This was mainly due to personnel expenses associated with business expansion, one-time expenses related to the stock market listing, higher rent following the relocation to a new headquarters in May 2023, and capital expenditures. As a result, operating profit was ¥31.406 million, down 82.6% year on year.」
The company explained that SG&A expenses increased due to personnel expenses associated with business expansion, listing-related expenses, relocation expenses for the new headquarters and capital expenditures, resulting in a substantial decline in operating profit.