Ito En, Ltd.
Notice Regarding Recording of Impairment Loss and Revision of Earnings Guidance (Consolidated and Non-Consolidated)
In the third quarter of the fiscal year ending April 2026, an impairment loss of JPY 13,594 million was recorded in the vending machine business, leading to a 93.8% downward revision of full-year consolidated net income forecast from JPY 16,000 million to JPY 1,000 million.
Key Figures
- Impairment Loss (Consolidated): JPY 13,594 million
- Consolidated Net Income Attributable to Owners of Parent Forecast: JPY 1,000 million (down 93.8% from previous 16,000 million)
- Consolidated Operating Income Forecast: JPY 20,000 million (down 21.6% from previous 25,500 million)
AI要約
Regarding Recording of Impairment Loss
In the third quarter of the fiscal year ending April 2026, the grouping for impairment accounting was reviewed for fixed assets in the vending machine business. Due to rising raw material costs, logistics expenses, and labor costs combined with declining sales volume, the business environment deteriorated, resulting in an expected consolidated impairment loss of JPY 13,594 million.
Reasons and Details for Revision of Full-Year Earnings Guidance for Fiscal Year Ending April 2026
Despite implementing price revisions and efficiency improvements in response to a challenging market environment caused by rising raw material prices and stronger consumer cost-saving behavior, these measures were insufficient to offset the negative factors. Additionally, the recording of impairment loss, upfront advertising investments, and increased rebates due to intensified competition led to a 93.8% downward revision of consolidated net income forecast from JPY 16,000 million to JPY 1,000 million. Net sales are expected to exceed the previous forecast; however, profits are projected to decline significantly. Similar significant profit decreases are anticipated in the non-consolidated forecast.
