Expected Recognition of Impairment Losses (Consolidated) and Losses on Valuation of Shares in Affiliates (Non-consolidated), and Revision of the Full-Year Consolidated Earnings Forecast for the Fiscal Year Ending March 2026
Mitsui DM Sugar Co.,Ltd., its consolidated subsidiary SIS’88 Pte Ltd, and SIS’88 Pte Ltd’s subsidiaries Asian Blending Pte Ltd, SIS MIDDLE EAST INVESTMENT L.L.C, and Asian Blending LIMITED LIABILITY COMPANY
Property, plant and equipment, goodwill and intangible fixed assets (other), and shares in SIS’88 Pte Ltd
Following a review of recoverability in light of changes in the business environment. In addition, the net asset value of shares in SIS’88 Pte Ltd has declined significantly.
Consolidated: Impairment loss of ¥6,000 million (extraordinary loss, expected to be recognized). Non-consolidated: Loss on valuation of shares in affiliates of ¥8,200 million (extraordinary loss, expected to be recognized). The loss on valuation of shares in affiliates will be eliminated in the consolidated financial statements and will have no impact on consolidated results.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
Net income attributable to owners of the parent has been revised downward from ¥7,700 million to ¥3,900 million. The change is a decrease of ¥3,800 million, or 49.4%. The annual dividend forecast remains unchanged from the most recently announced forecast.
The Company expects to recognize an impairment loss and a loss on valuation of shares in affiliates in the fiscal year ending March 2026. Actual results may differ from the forecast figures due to various factors.
| Item | Details |
|---|---|
| Event name | Expected Recognition of Impairment Losses (Consolidated) and Losses on Valuation of Shares in Affiliates (Non-consolidated), and Revision of the Full-Year Consolidated Earnings Forecast for the Fiscal Year Ending March 2026 |
| Subject Entity | Mitsui DM Sugar Co.,Ltd., its consolidated subsidiary SIS’88 Pte Ltd, and SIS’88 Pte Ltd’s subsidiaries Asian Blending Pte Ltd, SIS MIDDLE EAST INVESTMENT L.L.C, and Asian Blending LIMITED LIABILITY COMPANY |
| Target Locations / Products | Property, plant and equipment, goodwill and intangible fixed assets (other), and shares in SIS’88 Pte Ltd |
| Cause | Following a review of recoverability in light of changes in the business environment. In addition, the net asset value of shares in SIS’88 Pte Ltd has declined significantly. |
| Amount of Impact on Business Performance | Consolidated: Impairment loss of ¥6,000 million (extraordinary loss, expected to be recognized). Non-consolidated: Loss on valuation of shares in affiliates of ¥8,200 million (extraordinary loss, expected to be recognized). The loss on valuation of shares in affiliates will be eliminated in the consolidated financial statements and will have no impact on consolidated results. |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | Net income attributable to owners of the parent has been revised downward from ¥7,700 million to ¥3,900 million. The change is a decrease of ¥3,800 million, or 49.4%. The annual dividend forecast remains unchanged from the most recently announced forecast. |
| Outlook | The Company expects to recognize an impairment loss and a loss on valuation of shares in affiliates in the fiscal year ending March 2026. Actual results may differ from the forecast figures due to various factors. |
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The reasons the company gives
The company's own explanation, not something inferred from the numbers.Following a review of the recoverability of fixed assets in light of changes in the business environment, the Company expects to recognize an impairment loss. In addition, the Company expects to recognize a loss on valuation of shares in affiliates because the net asset value of shares in SIS’88 Pte Ltd has declined significantly.