Profitability-Focused Review of Company-by-Company Transactions and Appropriate Pricing
First written in FY2018. 14 of 18 entries say "Advanced", first in FY2019-Q1. Latest entry: FY2026.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Profitability has improved as the proposal process for repair and renovation work and efforts to revise prices became established. In addition, increased orders for large-scale renovation and construction management services offset revenue declines from ending transactions with unprofitable customers and a decrease in large spot projects, resulting in higher revenue and profit.」
Due to the proposal process for repair and renovation work, price revisions, the termination of transactions with unprofitable customers, and orders for large-scale renovation and construction management services, the building management business achieved revenue growth of 8.0% and profit growth of 137.1%. - FY2026-H1AdvancedAnnual report
「Profitability improved as the proposal process for repair and renovation work and ongoing efforts to raise prices became established.」
The development of a proposal process for repair and renovation work and ongoing negotiations for price increases became established, and were cited as drivers of improved profitability in the building management business. - FY2024-Q3AdvancedAnnual report
「The security business as a whole remained solid due to ongoing negotiations for price increases and efforts to win new orders. Revenue was ¥23,165 million, an increase of ¥1,523 million, or 7.0%, from the same quarter of the previous year.」
Ongoing negotiations for price increases and efforts to win new orders contributed to higher revenue across the security business. - FY2024-Q2AdvancedAnnual report
「On the profit front, in addition to the effects of price increases, the benefits of integrating 2 cleaning companies in the building management business took effect. Operating profit was ¥393 million, an increase of ¥206 million, or 110.7%, from the same quarter of the previous year, while ordinary profit was ¥427 million, an increase of ¥151 million, or 55.0%.」
The continued effect of negotiations for price increases contributed to higher operating profit and ordinary profit, and the benefits of integrating the cleaning subsidiaries were also realised. - FY2024-Q1AdvancedAnnual report
「Price increase negotiations that had been pursued since the previous fiscal year, together with the significant contribution from the inclusion of Godai Tech Co., Ltd. in the group from the end of the first quarter of the previous fiscal year, resulted in the security services business driving overall performance. Revenue was ¥7,394 million, an increase of ¥789 million from the same quarter of the previous year.」
Negotiations for price increases initiated in the previous fiscal year contributed to higher revenue. The company stated that its efforts toward appropriate pricing were reflected in overall performance. - FY2023-Q3AdvancedAnnual report
「The 2 companies primarily engaged in cleaning services also improved profitability after negotiating price increases with customers in response to the minimum wage increase. As a result, the building management business recovered from its first-quarter loss and returned to profitability in the second quarter. It remained profitable in the cumulative third quarter, with revenue excluding intersegment internal revenue and transfers of ¥6,731 million, an increase of ¥63 million, or 0.9%, from the same period of the previous year, while segment profit was ¥25 million, a decrease of ¥224 million, or 90.0%, from the same period of the previous year.」
Profitability improved after 2 companies primarily engaged in cleaning services passed through the increase in the minimum wage, and the building management business turned profitable on a cumulative third-quarter basis. - FY2023-Q2Passing through higher costs remains a challengeAnnual report
「As costs have increased due to the weaker yen and higher personnel expenses, passing these additional costs through to prices remains a challenge.」
In connection with efforts toward appropriate pricing, the company stated that passing through additional costs resulting from the weaker yen and higher personnel expenses remained a challenge. - FY2022AdvancedAnnual report
「The building management business became more profitable due to higher revenue, as described above, as well as efforts to control costs and raise prices.」
In the building management business, efforts to control costs and raise prices resulted in revenue growth of 8.0% and segment profit growth of 32.5%. - FY2022-Q2AdvancedAnnual report
「As the performance of an affiliated company improved significantly, revenue, excluding intersegment internal revenue or transfers, was ¥4,392 million, up 12.9% year on year. Segment profit was ¥170 million, up 196.8% year on year, due to higher revenue and cost controls.」
In connection with efforts toward appropriate pricing and improved profitability, profit in the building management business increased 196.8% year on year due to higher revenue and cost controls. - FY2020Unable to absorb higher costs through price increases and new ordersAnnual report
「In the building management business, revenue increased significantly following the acquisition of Morita Building Management Co., Ltd. as a subsidiary, but segment profit did not cover cost increases, including the rise in the minimum wage, through price increases and new orders.」
The company advanced appropriate pricing and profitability improvements through price increases and new orders, but was unable to absorb cost increases, including the rise in the minimum wage. - FY2019AdvancedAnnual report
「Revenue increased due to the acquisition of new projects and the recovery in orders for spot construction projects in the second half. Segment profit also increased as a result of efforts to preserve margins, including passing higher costs through to sales prices, and to operate at low cost.」
In the building management business, the company advanced the pass-through of higher costs into prices, margin preservation and low-cost operations, resulting in revenue growth of 2.5% and segment profit growth of 24.7%. - FY2019-Q3AdvancedAnnual report
「In the building management business, the decline in revenue narrowed as spot orders, which had been sluggish in the first half, recovered, but revenue, excluding intersegment internal revenue, was ¥4,145 million, down 0.8% year on year. In terms of earnings, efforts to widen margins and operate at low cost resulted in segment profit (operating profit) of ¥110 million, up 12.5% year on year.」
Although revenue in the building management business declined 0.8%, segment profit was ¥110 million, up 12.5% year on year, due to wider margins and low-cost operations. - FY2019-Q2AdvancedAnnual report
「Segment profit was ¥69 million, up 1.1% year on year, as a result of efforts to widen margins and operate at low cost, maintaining a level comparable to the previous year.」
In the building management business, continued efforts to widen margins and operate at low cost resulted in segment profit increasing 1.1% year on year despite lower revenue. - FY2019-Q1AdvancedAnnual report
「Due to a decline in orders for spot projects, revenue, excluding intersegment internal revenue or transfers, was ¥1,305 million, down 3.8% year on year. Segment profit (operating profit) was ¥24 million, up 27.8% year on year, as a result of efforts to widen margins and operate at low cost.」
In the building management business, efforts to widen margins and operate at low cost resulted in segment profit increasing 27.8% year on year despite lower revenue. - FY2018First statedAnnual report
「We will review transactions on an account-by-account basis with an emphasis on profitability and implement appropriate pricing for electronic security, facility security and cleaning services. As a group, we will work to review low-profitability transactions and negotiate price increases to appropriate levels.」
As new specific measures to address price competition and rising personnel and subcontracting costs, the company cited account-by-account profitability reviews, appropriate pricing and negotiations for price increases on low-profitability transactions.