Notice Regarding Recording of Impairment Loss, Reversal of Deferred Tax Assets, and Revision of Full-Year Earnings Forecast

Overview of Earnings Forecast Revision

Fuji Oil Holdings Inc. expects to record an impairment loss of 4,137 million yen related to goodwill and a reversal of deferred tax assets of 5,125 million yen in its consolidated results for the fiscal year ending March 2026 due to the prolonged recovery of its consolidated subsidiary, Blommer Chocolate Company, LLC. Accordingly, the full-year earnings forecast announced on February 10, 2026, has been revised with net sales remaining nearly unchanged at 772,300 million yen, operating income at 36,000 million yen (down 1.4% from the previous forecast), and net income attributable to owners of parent revised downward significantly to 11,100 million yen (down 32.7% from the previous forecast).

Background of the Revision and Future Outlook

Blommer commenced structural reforms in March 2024 and is in the process of recovering from losses caused by surging cocoa prices. However, prolonged weak demand and increased fixed costs led to operating results falling short of initial plans in the fiscal year ending March 2026. Based on this situation, an impairment test was conducted resulting in the decision to record goodwill impairment and reversal of deferred tax assets. While net sales are expected to remain steady, profit recovery is anticipated to require more time. The company notes that future performance may be affected by various factors.