Revised forecast
Fiscal year ending March 2026 · Full yearThe bar length represents the relative magnitude of change, based on the item that changed the most in this document.
Ordinary profit fell below the previous fiscal year's actual result due to higher SG&A expenses resulting from costs associated with establishing the holding company structure, advisory fees related to promoting M&A, and marketing investments; a decline in orders as clients brought marketing activities in-house; higher raw material and logistics costs; and foreign exchange fluctuations. In addition to the ordinary loss, net income reflected extraordinary income of ¥710 million, goodwill impairment loss of ¥304 million, business withdrawal loss of ¥26 million, costs related to the change of corporate name and other matters of ¥30 million, and deferred income tax expense (loss) of ¥205 million, among other items.
Goodwill impairment loss: ¥304 million; business withdrawal loss: ¥26 million; costs related to the change of corporate name and other matters: ¥30 million
| Item | Details |
|---|---|
| Ordinary income | -546 |
| Profit attributable to owners of the parent | -480 |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Period Covered | Full year |
| Previous-period results | Ordinary profit: ¥95 million; net income attributable to owners of the parent: ¥112 million (fiscal year ended March 2025) |
| Reason for the revision | Ordinary profit fell below the previous fiscal year's actual result due to higher SG&A expenses resulting from costs associated with establishing the holding company structure, advisory fees related to promoting M&A, and marketing investments; a decline in orders as clients brought marketing activities in-house; higher raw material and logistics costs; and foreign exchange fluctuations. In addition to the ordinary loss, net income reflected extraordinary income of ¥710 million, goodwill impairment loss of ¥304 million, business withdrawal loss of ¥26 million, costs related to the change of corporate name and other matters of ¥30 million, and deferred income tax expense (loss) of ¥205 million, among other items. |
| Details and amount of extraordinary loss | Goodwill impairment loss: ¥304 million; business withdrawal loss: ¥26 million; costs related to the change of corporate name and other matters: ¥30 million |
| Consolidated / non-consolidated | Consolidated |
Items this document does not state (5)
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.The ordinary loss was attributable to a substantial increase in selling, general and administrative expenses due to costs associated with establishing the holding company structure, advisory fees related to promoting M&A, and marketing investments to accelerate growth across the various brands; lower-than-expected net sales due to a decline in orders as clients brought marketing activities in-house; and pressure on profit from higher raw material and logistics costs and foreign exchange fluctuations. The reasons cited for the net loss were the ordinary loss, goodwill impairment loss of ¥304 million, business withdrawal loss of ¥26 million, costs related to the change of corporate name and other matters of ¥30 million, and deferred income tax expense (loss) of ¥205 million. At the same time, a ¥710 million gain on sale of investments in affiliates was recognized as extraordinary income in connection with the transfer of subsidiary shares.