Risk of Impairment Losses on Fixed Assets Due to Intensifying Competition and Delays in Business Development
First written in FY2017. 13 of 16 entries say "Materialised", first in FY2019. Latest entry: FY2026.
Prima Meat Packers moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 51 of 96 companies on the "Worse" side.
67 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In the fiscal year ending March 2026, the company determined that total undiscounted future cash flows were below the carrying amount of goodwill and customer-related assets in assessing whether to recognize impairment. It therefore impaired the goodwill of Rudi's Fine Food Pte Ltd and TMG International Co., Ltd. and recorded an impairment loss. The resulting impairment loss of ¥335 million was recorded as an extraordinary loss. Following this impairment, no goodwill remained at the end of the fiscal year ending March 2026.」
The company recorded total impairment losses of ¥335 million on the goodwill of Rudi's Fine Food and TMG International, eliminating the goodwill balance. - FY2026-H1MaterialisedAnnual report
「The company recorded an impairment loss of ¥75 million in the Meat segment.」
The company actually recorded an impairment loss of ¥75 million in the Meat segment. - FY2025MaterialisedAnnual report
「The company impaired the goodwill of Rudi's Fine Food Pte Ltd and recorded an impairment loss. The resulting impairment loss of ¥968 million was recorded as an extraordinary loss.」
The company recorded an impairment loss of ¥968 million on the goodwill of Rudi's Fine Food Pte Ltd due to a deviation from the business plan. - FY2024-Q3MaterialisedAnnual report
「The company recorded an impairment loss of ¥296 million in the Processed Foods segment.」
The company actually recorded an impairment loss of ¥296 million in the Processed Foods segment. - FY2024-Q2MaterialisedAnnual report
「The company recorded an impairment loss of ¥283 million in the Processed Foods segment.」
The company actually recorded an impairment loss of ¥283 million in the Processed Foods segment. - FY2023MaterialisedAnnual report
「In the current consolidated fiscal year, the company determined that total undiscounted future cash flows were below the carrying amount of fixed assets in assessing whether to recognize impairment. It therefore reduced certain assets of Prime Delica Co., Ltd. to their recoverable amount, net realizable value, and recorded an impairment loss. The resulting impairment loss of ¥3,821 million was recorded as an extraordinary loss.」
The company recorded total impairment losses of ¥4.643 billion, including ¥3,821 million on operating assets of Prime Delica and ¥807 million on goodwill of TMG International. - FY2021MaterialisedAnnual report
「Regarding goodwill, the company reduced its carrying amount to its recoverable amount because achieving the business plan assumed at the time of acquisition had become difficult and the investment recovery period could no longer be forecast, and recorded the reduction as an impairment loss under extraordinary losses.」
The company actually recorded impairment losses totaling ¥302 million, comprising ¥245 million of goodwill arising from the acquisition of shares in Tacky Foods Co., Ltd. and ¥56 million of idle assets at the Tamagawa Farm of Yukizawa Co., Ltd. - FY2020MaterialisedAnnual report
「For the above assets, the company reduced their carrying amounts to their recoverable amounts due to factors including the decision to discontinue operations and declining profitability, and recorded the reduction as an impairment loss under extraordinary losses.」
The company actually recorded total impairment losses of ¥2.6 billion on operating assets in Tsuchiura, Ibaraki Prefecture, and Niihama, Ehime Prefecture. The stated factors were the decision to demolish the former plant at the Ibaraki facility and declining profitability at the Niihama facility. - FY2020-Q3MaterialisedAnnual report
「In the Processed Foods segment, the company recorded an impairment loss on assets scheduled to be demolished in connection with the construction of a new plant. The impairment loss recorded for the nine-month period of the current fiscal year was ¥743 million.」
The company actually recorded an impairment loss of ¥743 million on assets scheduled to be demolished in connection with the construction of a new plant. - FY2019MaterialisedAnnual report
「Regarding goodwill, the company recognized the entire amount equivalent to goodwill as an impairment loss and recorded it as an extraordinary loss because the policy of accelerating environmental investment ahead of the original plan resulted in the suspension of operations at certain farms and an expected investment recovery period exceeding the assumption at the time of acquisition.」
The company actually recorded an impairment loss totaling ¥580 million, including goodwill, in connection with delays in business development and a longer investment recovery period. - FY2018RestatedAnnual report
「If intensified competition with peer companies worsens market conditions and the business development pursued by our group is delayed beyond expectations, such that fixed assets held by our group fail to generate cash flows as expected or become idle, or if the fair value of land held by our group declines significantly, we may recognize an impairment loss.」
The company reiterates the impairment risk arising from intensified competition, delays in business development, idle fixed assets and declining land prices. - FY2017First statedAnnual report
「If intensified competition with peer companies worsens market conditions and the business development pursued by our group is delayed beyond expectations, such that fixed assets held by our group fail to generate cash flows as expected or become idle, or if the fair value of land held by our group declines significantly, we may recognize an impairment loss.」
The company newly identifies the possibility of impairment losses arising from intensified competition, delays in business development and declines in land prices as an independent risk.