Recording of special losses (impairment losses and impairment loss on shares of an affiliate) and an adjustment to income taxes, and the difference between the full-year forecast and actual results for the fiscal year ending March 2026
AKIKAWA FOODS & FARMS CO.,LTD.; 秋川牧園（常州）有限公司 (consolidated subsidiary)
Direct-to-consumer delivery business (direct-to-consumer business); 秋川牧園（常州）有限公司, which produces and sells chicken in China
The direct-to-consumer business was affected by changes in the business environment, while the Chinese subsidiary was affected by changes in the operating environment in China. The impairment loss on shares of an affiliate resulted from a significant decline in the net asset value of the subsidiary's shares attributable to the subsidiary's impairment loss. The benefit from the adjustment to income taxes resulted from a review of the recoverability of deferred tax assets based on business trends for the fiscal year ending March 2026 and thereafter. The difference from the earnings forecast was attributable to consumers' stronger propensity to save, a decline in new members, a lower order rate, increased sales of frozen processed foods, lower personnel expenses and other expenses in indirect departments, and non-operating income from employment incentives received from government authorities.
Impairment loss in the Company's direct-to-consumer business: ¥94 million (separate and consolidated); impairment loss at 秋川牧園（常州）有限公司: ¥48 million (separate and consolidated); impairment loss on shares of an affiliate: ¥97 million (separate financial statements, recorded as a special loss; eliminated in consolidation); benefit from the adjustment to income taxes: ¥42 million (consolidated). The difference between consolidated actual results and the previous forecast was a ¥77 million decrease in revenue, a ¥41 million increase in operating income, a ¥66 million increase in ordinary income, and a ¥48 million decrease in net income attributable to owners of the parent. On a separate-company basis, revenue decreased by ¥77 million, ordinary income increased by ¥38 million, and net income decreased by ¥101 million.
The fiscal year ending March 2026 (1 April 2025 to 31 March 2026) and the cumulative consolidated period for the fiscal year ending March 2026
A difference arose between the full-year earnings forecast for the fiscal year ending March 2026 announced on 14 May 2025 and actual results. Consolidated actual results were revenue of ¥8,283 million, operating income of ¥143 million, ordinary income of ¥186 million, and net income attributable to owners of the parent of ¥21 million. Separate-company actual results were revenue of ¥8,083 million, ordinary income of ¥158 million, and net income of minus ¥20 million.
In the direct-to-consumer business, the Company will introduce products available exclusively to members, improve the usability of its e-commerce site, and enhance communications centered on its brand concept. At the Chinese subsidiary, the Company will improve production efficiency by raising chicken production performance and strengthen sales expansion among existing customers and the development of new customers. In both businesses, the Company will work to expand sales and improve profitability.
| Item | Details |
|---|---|
| Event name | Recording of special losses (impairment losses and impairment loss on shares of an affiliate) and an adjustment to income taxes, and the difference between the full-year forecast and actual results for the fiscal year ending March 2026 |
| Subject Entity | AKIKAWA FOODS & FARMS CO.,LTD.; 秋川牧園（常州）有限公司 (consolidated subsidiary) |
| Target Locations / Products | Direct-to-consumer delivery business (direct-to-consumer business); 秋川牧園（常州）有限公司, which produces and sells chicken in China |
| Cause | The direct-to-consumer business was affected by changes in the business environment, while the Chinese subsidiary was affected by changes in the operating environment in China. The impairment loss on shares of an affiliate resulted from a significant decline in the net asset value of the subsidiary's shares attributable to the subsidiary's impairment loss. The benefit from the adjustment to income taxes resulted from a review of the recoverability of deferred tax assets based on business trends for the fiscal year ending March 2026 and thereafter. The difference from the earnings forecast was attributable to consumers' stronger propensity to save, a decline in new members, a lower order rate, increased sales of frozen processed foods, lower personnel expenses and other expenses in indirect departments, and non-operating income from employment incentives received from government authorities. |
| Amount of Impact on Business Performance | Impairment loss in the Company's direct-to-consumer business: ¥94 million (separate and consolidated); impairment loss at 秋川牧園（常州）有限公司: ¥48 million (separate and consolidated); impairment loss on shares of an affiliate: ¥97 million (separate financial statements, recorded as a special loss; eliminated in consolidation); benefit from the adjustment to income taxes: ¥42 million (consolidated). The difference between consolidated actual results and the previous forecast was a ¥77 million decrease in revenue, a ¥41 million increase in operating income, a ¥66 million increase in ordinary income, and a ¥48 million decrease in net income attributable to owners of the parent. On a separate-company basis, revenue decreased by ¥77 million, ordinary income increased by ¥38 million, and net income decreased by ¥101 million. |
| Accounting period in which recognized | The fiscal year ending March 2026 (1 April 2025 to 31 March 2026) and the cumulative consolidated period for the fiscal year ending March 2026 |
| Impact on Earnings Forecast | A difference arose between the full-year earnings forecast for the fiscal year ending March 2026 announced on 14 May 2025 and actual results. Consolidated actual results were revenue of ¥8,283 million, operating income of ¥143 million, ordinary income of ¥186 million, and net income attributable to owners of the parent of ¥21 million. Separate-company actual results were revenue of ¥8,083 million, ordinary income of ¥158 million, and net income of minus ¥20 million. |
| Outlook | In the direct-to-consumer business, the Company will introduce products available exclusively to members, improve the usability of its e-commerce site, and enhance communications centered on its brand concept. At the Chinese subsidiary, the Company will improve production efficiency by raising chicken production performance and strengthen sales expansion among existing customers and the development of new customers. In both businesses, the Company will work to expand sales and improve profitability. |
Items this document does not state (17)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.In the direct-to-consumer business, the Company reviewed profitability and future prospects in light of changes in the business environment. At the Chinese subsidiary, the recoverability of fixed assets was reviewed in light of changes in the operating environment in China. The impairment loss on shares of an affiliate resulted from a significant decline in the subsidiary's net asset value attributable to its impairment loss. The ¥42 million benefit from the adjustment to income taxes resulted from a review of the recoverability of deferred tax assets in light of business trends. The difference from the earnings forecast was attributed to a decline in new members and a lower order rate reflecting consumers' stronger propensity to save, increased sales of frozen processed foods, lower personnel expenses and other expenses in indirect departments, and employment incentives received from government authorities.