Risk of recovering growth investments
First written in FY2017. 6 of 13 entries say "Materialised", first in FY2024-Q3. Latest entry: FY2027-H1.
Fuji Oil moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2019: 13 of 32 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「Business profit increased, due to lower cocoa bean-related costs at Blommer, firm demand for compound chocolate in Brazil and Asia, and higher sales volumes in the soybean processing materials business.」
At Blommer, business profit improved as cocoa bean-related costs declined, and the disclosure states that some of the post-acquisition monetisation and investment recovery risks were reduced. - 2026-08-07MitigatedResults
「事業利益は、Blommerでのカカオ豆関連費用の減少並びに大豆加工素材事業における販売数量の増加により増益となりました。」
Blommerではカカオ豆関連費用の減少により業務用チョコレート事業の事業利益が前年同期の損失から475百万円へ改善しており、収益化・投資回収リスクの影響が一部低減している。 - FY2026MaterialisedAnnual report
「For the current consolidated fiscal year, the company revised its business plan and conducted an impairment test for Blommer Chocolate Company, LLC (U.S.; hereinafter, “Blommer”) in light of declining sales volumes due to prolonged weak demand and higher fixed costs associated with strengthened management controls. As a result, recoverable value fell below carrying value, and the company recognized an impairment loss of ¥4,137 million.」
Regarding the risk of monetizing and recovering the investment in Blommer, the company recognized a ¥4,137 million goodwill impairment loss due to the divergence between the business plan and actual results. - FY2026-H1MitigatedAnnual report
「In the commercial chocolate business, sales volumes declined at Blommer, but losses improved due to lower cocoa bean-related expenses.」
Although sales volumes at Blommer continued to decline, losses improved due to lower cocoa bean-related expenses, indicating a partial reduction in the risk of monetizing the business and recovering the investment after the acquisition. - FY2025MaterialisedAnnual report
「Blommer Chocolate Company, LLC (U.S.; hereinafter, “Blommer”) is implementing the structural reform program announced on 22 March 2024, and the effects of fixed-cost reductions are beginning to emerge. However, deteriorating profitability due to higher procurement prices for cocoa beans, the principal raw material, and increased related expenses resulted in an operating loss for the current consolidated fiscal year.」
Regarding the risk of recovering the investment and monetizing the business, the effects of fixed-cost reductions are emerging at Blommer, but higher cocoa bean prices and related expenses have resulted in an operating loss. - FY2024MaterialisedAnnual report
「At Blommer Chocolate Company (U.S.; hereinafter, “Blommer”), profitability declined due to the impact of the COVID-19 pandemic after the 2019 acquisition, rising raw material prices and interest rates, and higher fixed costs resulting from inflation, and the company recognized an extraordinary loss in the current consolidated fiscal year. In addition, to rebuild Blommer’s business platform and earnings power, the company announced and is implementing a five-year structural reform program through fiscal 2028.」
The risk of monetizing the acquired business and recovering the investment materialized as lower profitability and an extraordinary loss at Blommer, and the company has moved to a five-year structural reform program through fiscal 2028. - FY2024-Q3MaterialisedAnnual report
「At Blommer Chocolate Company (U.S.; hereinafter, “Blommer”), the company recognized additional amortization of goodwill and an impairment loss on property, plant and equipment related to Blommer as extraordinary losses in the third quarter of the current consolidated fiscal year. This reflected the expectation that performance would fall below the business plan assumed at the time of acquisition due to the impact of the COVID-19 pandemic after the 2019 acquisition, rapidly rising interest rates, and higher fixed costs resulting from inflation.」
Regarding the risk of monetizing the acquired business and recovering the investment, the company has actually recognized additional goodwill amortization and an impairment loss on property, plant and equipment because Blommer was expected to fall short of its business plan. - FY2022WorsenedAnnual report
「With respect to Blommer, the company determined that the divergence between the business plan at the time of acquisition and actual results constituted an indication of impairment.」
Regarding the risk of monetizing the acquired business and recovering the investment, a divergence arose between the initial plan and actual results at Blommer, and an indication of goodwill impairment was identified. No impairment loss itself has been recognized. - FY2021WorsenedAnnual report
「At newly acquired companies and existing Group companies, delays in monetization and issues including improving production efficiency remain. The company believes that by addressing these matters urgently, it can generate returns commensurate with its investments.」
Delays in monetization and issues in improving production efficiency have been identified at Group companies, including acquired companies, and challenges in recovering investments continue. - FY2019WorsenedAnnual report
「Under the medium-term management plan Towards a Further Leap 2020, the company planned capital investment of ¥60 billion to ¥70 billion over four years and has selectively made investments that exceed its investment criteria, which place emphasis on the cost of capital. Goodwill at the end of the consolidated fiscal year was ¥54 billion, equivalent to 34% of net assets.」
The company disclosed a four-year capital investment plan of ¥60 billion to ¥70 billion, with goodwill associated with acquisitions reaching ¥54 billion, or 34% of net assets. - FY2017First statedAnnual report
「If the Group is unable to secure the production volumes and revenue initially projected, its performance and financial condition may be adversely affected.」
The company identifies the risk that anticipated production volumes and revenue from upfront capital investment may not be secured due to economic conditions, new market entrants and changes in consumer trends.