Komori
Revision of earnings forecasts2342TRANSGENIC GROUP INC.Information and Communications, Services and Others

Notice Regarding the Recognition of an Extraordinary Loss and Deferred Tax Assets, Differences Between Full-Year Consolidated Earnings Forecasts and Actual Results, and Differences Between Non-Consolidated Results and the Previous Fiscal Year's Actual Results

For the fiscal year ending March 2026, full-year consolidated results showed net sales and operating income below the previous forecast, while ordinary income exceeded it. However, due to the recognition of extraordinary losses and other items, net income attributable to owners of the parent changed from a forecast profit to an actual loss. On a non-consolidated basis, net sales declined year on year, while operating income, ordinary income and net income improved.

Worth reading
65In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-117
¥ million
Wording
Definitive
How definitive the wording is.

Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published 16 June 2025
Net Sales13,500→13,174million
-2.4%
Operating profit150→137million
-8.0%
Ordinary income90→118million
+31.2%
Profit attributable to owners of the parent40→-77million
-292.5%
Net income per share2.4→-4.64yen and sen
-293.3%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

In the drug discovery support business, the Company completed carried-over contracted studies, focused on securing new orders and reduced costs by streamlining operations. At the same time, man-hours related to recurrence-prevention measures and other initiatives increased, and expenses rose due to higher prices. In the investment and consulting business, e-commerce retail sales struggled as rising prices weakened consumer sentiment, while wholesale sales also remained sluggish. The Company nevertheless focused on price pass-through, optimization of inventory management, price negotiations and fixed-cost reductions. Ordinary income exceeded the forecast due to foreign exchange gains, while net income was affected by the recognition of extraordinary losses and deferred tax assets.

Details and amount of extraordinary loss

Business restructuring loss: ¥109 million; impairment loss on fixed assets: ¥47 million; loss compensation: ¥274 million, including ¥150 million in the fourth quarter. On a non-consolidated basis, the Company recognized extraordinary losses of ¥577 million, including ¥543 million in provision for allowance for doubtful accounts and other items. Income taxes—deferred resulting from the recognition of deferred tax assets amounted to a full-year benefit of ¥177 million.

Previous-period resultsConsolidated: net sales of ¥13,005 million, operating loss of ¥259 million, ordinary loss of ¥319 million, net loss attributable to owners of the parent of ¥1,089 million, and loss per share of ¥65.51. Non-consolidated: net sales of ¥287 million, operating loss of ¥19 million, ordinary loss of ¥36 million, net loss of ¥1,153 million, and loss per share of ¥69.35.
Consolidated / non-consolidatedConsolidated / non-consolidated (standalone)
Revised forecast
ItemDetails
Net Sales¥13,500 million → ¥13,174 million(-2.4%)
Operating profit¥150 million → ¥137 million(-8.0%)
Ordinary income¥90 million → ¥118 million(+31.2%)
Profit attributable to owners of the parent¥40 million → ¥-77 million
Net income per share2.4 yen and sen → -4.64 yen and sen
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecast16 June 2025
Previous-period resultsConsolidated: net sales of ¥13,005 million, operating loss of ¥259 million, ordinary loss of ¥319 million, net loss attributable to owners of the parent of ¥1,089 million, and loss per share of ¥65.51. Non-consolidated: net sales of ¥287 million, operating loss of ¥19 million, ordinary loss of ¥36 million, net loss of ¥1,153 million, and loss per share of ¥69.35.
Reason for the revisionIn the drug discovery support business, the Company completed carried-over contracted studies, focused on securing new orders and reduced costs by streamlining operations. At the same time, man-hours related to recurrence-prevention measures and other initiatives increased, and expenses rose due to higher prices. In the investment and consulting business, e-commerce retail sales struggled as rising prices weakened consumer sentiment, while wholesale sales also remained sluggish. The Company nevertheless focused on price pass-through, optimization of inventory management, price negotiations and fixed-cost reductions. Ordinary income exceeded the forecast due to foreign exchange gains, while net income was affected by the recognition of extraordinary losses and deferred tax assets.
Details and amount of extraordinary lossBusiness restructuring loss: ¥109 million; impairment loss on fixed assets: ¥47 million; loss compensation: ¥274 million, including ¥150 million in the fourth quarter. On a non-consolidated basis, the Company recognized extraordinary losses of ¥577 million, including ¥543 million in provision for allowance for doubtful accounts and other items. Income taxes—deferred resulting from the recognition of deferred tax assets amounted to a full-year benefit of ¥177 million.
Consolidated / non-consolidatedConsolidated / non-consolidated (standalone)
Items this document does not state (1)
Dividend forecast revision

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 drug discovery support business, the Company completed carried-over contracted studies, focused on securing new orders and reduced costs by streamlining operations. However, increased man-hours associated with recurrence-prevention measures and higher expenses resulting from rising prices weighed on operating income. In the investment and consulting business, retail sales struggled as rising prices weakened consumer sentiment, while wholesale sales also remained sluggish. Nevertheless, the Company secured profits through price pass-through, optimization of inventory management, price negotiations and fixed-cost reductions. Ordinary income exceeded the forecast due to foreign exchange gains, while net income was affected by the recognition of extraordinary losses and deferred tax assets.

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Notice Regarding the Recognition of an Extraordinary Loss and Deferred Tax Assets, Differences Between Full-Year Consolidated Earnings Forecasts and Actual Results, and Differences Between Non-Consolidated Results and the Previous Fiscal Year's Actual Results | TRANSGENIC GROUP INC. (2342) timely disclosure | Komori