Notice Regarding Recognition of Extraordinary Losses (Consolidated and Non-Consolidated) and Revisions to Full-Year Consolidated Earnings Forecast for the Fiscal Year Ending September 2026

Summary of Results

It is anticipated that extraordinary losses including impairment related to JAPAN FOOD GUIDE will be recognized in the current period, and in the non-consolidated results we expect to record 80 million yen for allowances for doubtful accounts and 60 million yen for impairment losses on investments in affiliates. Since these items are eliminated on a consolidated basis, there is no impact on the consolidated earnings. The full-year consolidated net sales have been revised upward to 4,109 million yen (up 483 million yen vs. previous forecast, +13.3%), while operating income, ordinary income, and net income are expected to be -215 million yen, -205 million yen, and -303 million yen respectively, below the previous forecast.

Outlook and Risks

Initial investments for new store openings, costs related to M&A, and higher costs accompanying increased sales of services with high cost of goods sold are expected to constrain profits. Items such as allowances for doubtful accounts and impairment losses do not affect the consolidated results, but future performance may change depending on additional costs and market trends.