Environmental Services revenue decline following large-volume sales to major franchisees
First written in FY2020-Q1. 11 of 18 entries say "Restated". Latest entry: FY2025-H1.
No other company in this theme has enough history to compare yet.
- FY2025-H1Lower product sales to franchiseesAnnual report
「Demand is increasing for high-value-added services such as prevention of hospital-acquired infections, as well as operating-room support services against a backdrop of labor shortages at medical institutions. While hospital cleaning revenue performed steadily and drove higher revenue in the Building Cleaning and Management business, the segment posted lower revenue than in the previous interim consolidated accounting period due to lower product sales to franchisees in the Leasekin business and other factors.」
While demand for hospital cleaning and operating-room support services increased, product sales to franchisees declined in the Leasekin business, resulting in a 1.9% year-on-year decline in Environmental Services revenue for the interim period. - FY2024-Q3RestatedAnnual report
「Revenue increased year on year as a result of the absorption of a non-consolidated subsidiary in the Leasekin business. In terms of profit, integration benefits, including the consolidation and streamlining of operations following the absorption of 1 non-consolidated subsidiary and 1 consolidated subsidiary in the Leasekin business, contributed to profit.」
In Environmental Services, the integration benefits of consolidating and streamlining operations following the merger contributed to higher revenue and profit. - FY2024-Q2RestatedAnnual report
「The Building Cleaning and Management business posted lower revenue due to a decline in contracted COVID-19 ward operations and other factors, despite continuing growth in demand for high-value-added services such as infection-control measures. The solar power business also posted lower revenue due to output curtailment. However, Environmental Services posted higher revenue year on year following the merger of an unconsolidated subsidiary into the Leasekin business. Integration benefits, including the consolidation and streamlining of operations following the merger of 1 unconsolidated subsidiary and 1 consolidated subsidiary into the Leasekin business, contributed to profit.」
In Environmental Services, the integration benefits of consolidating and streamlining operations following the merger contributed to profit, while revenue was weighed down by the decline in contracted COVID-19 ward operations and solar power output curtailment. - FY2024-Q1Revenue and profit growth driven by the benefits of integration following a mergerAnnual report
「The Building Cleaning and Management business posted lower revenue due to a decline in contracted COVID-19 ward operations and other factors, despite continuing growth in demand for high-value-added services such as infection-control measures. The solar power business also posted lower revenue due to output curtailment. However, Environmental Services posted higher revenue year on year following the merger of an unconsolidated subsidiary into the Leasekin business. Profit increased year on year despite lower profit from the solar power business due to lower revenue, owing to integration benefits including the consolidation and streamlining of operations following the merger of 1 unconsolidated subsidiary and 1 consolidated subsidiary into the Leasekin business, improved profitability from process improvements in the Building Cleaning and Management business, and the recognition of temporary costs related to the planned sale of real estate in the real estate business in the previous period.」
Environmental Services posted revenue of ¥3,617 million, up 5.2% year on year, and operating profit of ¥328 million, up 8.5%. Integration benefits, including the consolidation and streamlining of operations following the merger, were specifically cited as a factor behind the profit increase. - FY2023ReframedAnnual report
「In the Leasekin business, the company is focusing on expanding sales of toilet-related products, for which demand is increasing, and is working to train Toilet Advisors to strengthen sales activities centered on these products.」
The description of Environmental Services has shifted from revenue decline factors such as the reactionary decline following large-volume sales to major franchisees and COVID-19 to an explanation of business transformation centered on expanding sales of toilet-related products and developing specialized personnel. - FY2023-Q3RestatedAnnual report
「In the Leasekin business, revenue increased as sales activities focused on toilet-related products were promoted, franchisees became more willing to purchase materials as some demand recovered, and the hospital cleaning business performed steadily. As for profit, the benefits of efforts to revise prices were outweighed by higher temporary costs, including increased depreciation expenses associated with the renewal of systems and laundry equipment, costs related to launching new locations and performing specialized work in the Building Cleaning and Management business, and costs associated with the sale of real estate held by group companies in this segment, resulting in lower profit year on year.」
Environmental Services posted higher revenue due to sales efforts focused on toilet-related products, the recovery in franchisees' willingness to purchase materials and steady hospital cleaning operations. However, profit declined due to temporary costs and other factors that outweighed the benefits of price revisions. - FY2023-Q2RestatedAnnual report
「In the Leasekin business, sales increased due to stronger sales activities focused on products for use around toilets and greater franchisee willingness to purchase materials as some demand recovered. In addition, the hospital cleaning business performed well, resulting in higher sales than in the same quarter of the previous year.」
Environmental Services posted higher revenue due to sales activities focused on toilet-related products, increased franchisee willingness to purchase as demand recovered, and steady hospital cleaning operations. However, operating profit declined due to costs for new business locations and other factors. - FY2023-Q1RestatedAnnual report
「In the Leasekin business, sales increased due to stronger sales activities focused on products for use around toilets and greater franchisee willingness to purchase materials as some demand recovered. In addition, the hospital cleaning business performed well, resulting in higher sales than in the same quarter of the previous year.」
Environmental Services posted higher revenue year on year due to sales activities focused on toilet-related products, increased franchisee willingness to purchase materials as demand recovered, and steady hospital cleaning operations. - FY2022-Q3RestatedAnnual report
「Revenue increased year on year as the Building Cleaning and Management business, centered on hospital cleaning, continued to perform steadily on demand for infection-control measures, while sales, mainly of toilet-related products, also increased in the Leasekin business despite the continuing impact of deteriorating business conditions at restaurants and other customers. Profit increased year on year due to higher profit accompanying the increase in revenue and improved profitability in the Building Cleaning and Management business.」
While the impact of deteriorating business conditions at restaurants and other customers continued to affect the Leasekin business, Environmental Services maintained its increase in revenue and profit, supported by higher hospital cleaning and toilet-related product sales and improved profitability in the Building Cleaning and Management business. - FY2022-Q2RestatedAnnual report
「Revenue increased year on year as the Building Cleaning and Management business, centered on hospital cleaning, continued to perform steadily on demand for infection-control measures, while sales of toilet-related products also grew in the Leasekin business despite the continuing impact of deteriorating business conditions at restaurants and other customers. Profit increased year on year due to higher profit accompanying the increase in revenue and improved profitability in the Building Cleaning and Management business.」
While the impact of deteriorating business conditions at restaurants and other customers continued to affect the Leasekin business, Environmental Services maintained its increase in revenue and profit, supported by growth in hospital cleaning and toilet-related product sales and improved profitability in the Building Cleaning and Management business. - FY2022-Q1Revenue and profit growth despite continuing factors weighing on revenueAnnual report
「Revenue increased year on year as the Building Cleaning and Management business, centered on hospital cleaning, continued to perform steadily on demand for infection-control measures, while sales of toilet-related products also grew in the Leasekin business despite the continuing impact of deteriorating business conditions at restaurants and other customers. Profit increased year on year due to higher profit accompanying the increase in revenue and improved profitability in the Building Cleaning and Management business.」
While the impact of deteriorating business conditions at restaurants and other customers continued to affect the Leasekin business, Environmental Services posted higher revenue and profit year on year due to growth in sales of toilet-related products and steady hospital cleaning operations. - FY2021RestatedAnnual report
「Due to the impact of the spread of COVID-19, including lower hotel and ryokan occupancy rates, on the bedding and linen supply business and the commercial laundry equipment manufacturing business, revenue and profit declined year on year in the consolidated fiscal year.」
The impact of lower hotel and inn occupancy rates on the bedding and linen supply business and the manufacture of cleaning equipment was reconfirmed as a factor behind the full-year revenue and profit declines. - FY2021-Q3RestatedAnnual report
「Demand for infection-control measures supported steady cleaning revenue, while sales of hygiene management products also increased in the Leasekin business. However, the impact of deteriorating business conditions at restaurants and other customers of the Leasekin business was substantial, resulting in lower revenue year on year. Profit also declined year on year due mainly to lower profit accompanying the decrease in revenue.」
Growth in cleaning and hygiene management products driven by demand for infection-control measures continued to coexist with lower Leasekin revenue due to deteriorating business conditions at restaurants and other businesses. - FY2021-Q2RestatedAnnual report
「Although cleaning business revenue remained firm on demand for infectious disease control, revenue declined year on year in the Leasekin business, partly because business conditions at restaurants and other customers deteriorated despite stronger demand for hygiene management products.」
In Environmental Services, steady cleaning revenue driven by demand for infection-control measures coexisted with lower Leasekin revenue due to deteriorating business conditions at restaurants and other customers. Environmental Services revenue was ¥6,429 million, down 6.4% year on year. - FY2021-Q1ReframedAnnual report
「Although demand for cleaning services and sanitation products as infection-control measures increased amid the spread of COVID-19, revenue declined from the same quarter of the previous year due to the impact of restaurants, commercial facilities and other customers of the Leasekin business voluntarily suspending operations.」
The factor behind the decline in Environmental Services revenue changed from the reactionary decline following large-volume sales to major franchisees in the previous period to voluntary business closures by restaurants, commercial facilities and other businesses associated with the spread of COVID-19. Increased demand related to infection-control measures was also mentioned. - FY2020-Q3Generalization of the revenue decline factorAnnual report
「Hospital cleaning in the building cleaning and management business performed steadily, while the Leasekin business reported lower revenue than in the same quarter of the previous year. In terms of profit, although the decline in Leasekin business revenue reduced profit, profit increased year on year due to improved profitability in the building cleaning and management business and other factors.」
The specific revenue decline factor cited in the previous 2 quarters, namely the reactionary decline following large-volume sales to major franchisees, was no longer mentioned, and the wording became a general reference to lower year-on-year revenue in the Leasekin business. Meanwhile, Environmental Services as a whole posted higher profit, supported by steady hospital cleaning operations and improved profitability in the Building Cleaning and Management business. - FY2020-Q2RestatedAnnual report
「Although the building cleaning and management business performed steadily, supported by new contracts, revenue declined year on year because product sales in the Leasekin business decreased, partly due to the backlash from large sales to major franchisees in the previous period.」
In Environmental Services, the Building Cleaning and Management business secured new contracts, while the Leasekin business continued to experience lower product sales following the reactionary decline from large-volume sales to major franchisees in the previous period. Environmental Services posted revenue of ¥6,871 million, down 1.1% year on year, and operating profit of ¥539 million, down 5.3%. - FY2020-Q1First statedAnnual report
「Although the building cleaning and management business performed steadily, supported by new contracts, revenue declined year on year because product sales in the Leasekin business decreased, partly due to the backlash from large sales to major franchisees in the previous period.」
In Environmental Services, the Building Cleaning and Management business secured new contracts, while the Leasekin business experienced a reactionary decline following large-volume sales to major franchisees in the previous period. Environmental Services posted revenue of ¥3,450 million, down 1.4% year on year, and operating profit of ¥297 million, down 19.9%.