Risk of failing to achieve the expected benefits of acquisitions
First written in FY2018. 5 of 14 entries say "Materialised", first in FY2024-Q3. Latest entry: 2026-11-10.
Fuji Oil moved to the "Worse" side of this theme in 2019, 5 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 40 of 92 companies on the "Worse" side.
24 other companies' latest entry also says "Mitigated".
- 2026-11-10MitigatedResults
「Business profit increased due to lower cocoa bean-related costs at Blommer and firm demand for compound chocolate in Brazil and Asia.」
Blommerを含む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4,776百万円へ改善し、買収事業の収益化リスクが一部低減している。 - 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 increased as cocoa bean-related costs declined, and the disclosure states that some of the risks related to failure to achieve the acquisition’s benefits and monetisation were mitigated. - 2026-08-07MitigatedResults
「事業利益は、Blommerにおけるカカオ豆関連費用の減少並びにブラジルでの販売価格改定による採算性の改善により増益となりました。」
Blommerの事業利益は前年同期のマイナス3,302百万円から475百万円へ改善し、買収事業の期待効果未達リスクに関する業績影響が一部縮小している。 - 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.」
The risk that the expected benefits of the acquisition would not be achieved continues to materialize through the revision of Blommer’s business plan and the recognition of a ¥4,137 million goodwill impairment loss. - FY2026-H1MitigatedAnnual report
「Although sales volumes declined at Blommer, losses improved due to lower cocoa bean-related costs.」
Although the risk that the expected benefits of the Blommer acquisition will not be achieved remains, the disclosure states that losses improved due to lower cocoa bean-related costs. - 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.」
The risk that the expected benefits of the acquired business will not be achieved continues to materialize as operating losses at Blommer. The fixed-cost savings generated by structural reforms are also noted. - FY2025-H1MaterialisedAnnual report
「Blommer Chocolate Company (U.S.; hereinafter, “Blommer”) is implementing the structural reforms announced on 22 March 2024, and the reforms are generating fixed-cost savings. However, profitability temporarily deteriorated due to higher procurement prices for cocoa beans, its principal raw material, and increased related costs, resulting in an operating loss for the current interim consolidated accounting period.」
Although structural reforms are generating fixed-cost savings, Blommer has incurred an operating loss due to higher cocoa bean procurement prices and related costs, highlighting the risk that the expected benefits of the acquired business will not be achieved and that it will not be monetized. - FY2024MaterialisedAnnual report
「During the current consolidated fiscal year, the company recorded ¥6,467 million in goodwill amortization for Blommer.」
The risk that the expected benefits of the acquisition would not be achieved has materialized in the recognition of ¥6,467 million in goodwill amortization, ¥3,706 million in impairment losses on fixed assets, and ¥898 million in business restructuring losses related to Blommer. - FY2024-Q3MaterialisedAnnual report
「At Blommer Chocolate Company (United States; hereinafter, "Blommer"), because the business was expected to perform below the plan anticipated at the time of acquisition due to the impact of the COVID-19 pandemic following the 2019 acquisition, rapidly rising interest rates and higher fixed costs associated with inflation, the company recorded additional amortization of goodwill related to Blommer and an impairment loss on property, plant and equipment as extraordinary losses in the third quarter of the current consolidated fiscal year.」
The risk of failing to achieve the expected benefits of the acquisition has materialized in Blommer through the outlook for performance below the acquisition plan and the recognition of ¥6,391 million in goodwill amortization and ¥3,663 million in impairment losses on property, plant and equipment. - FY2022WorsenedAnnual report
「The amount of goodwill recorded on the consolidated balance sheet at the end of the current consolidated fiscal year was ¥27,008 million. The amounts of goodwill recorded for Blommer, HARALD and INDUSTRIAL FOOD SERVICES are as follows.」
With the combined goodwill balance of the three acquired companies reaching approximately ¥27.0 billion, Blommer showed indicators of impairment due to a divergence from its business plan, giving concrete form to the risk of failing to achieve the expected benefits of the acquisition. - FY2021WorsenedAnnual report
「Regarding Blommer, HARALD and INDUSTRIAL FOOD SERVICES, the company determined that indicators of impairment existed because discrepancies had arisen between the business plans at the time of acquisition and actual results.」
The three acquired companies experienced discrepancies between their initial plans and actual results, indicating potential impairment of goodwill. No impairment loss itself was recorded for these three companies. - FY2020WorsenedAnnual report
「We have actively invested in the Industrial Chocolate Business, but recognize that generating greater cash flow from this business remains a challenge.」
While expanding the business through acquisitions and investments, the company explicitly states that generating cash flow from the Industrial Chocolate Business remains a challenge. - FY2019WorsenedAnnual report
「Goodwill at the end of the current consolidated fiscal year was ¥54.0 billion, equivalent to 34% of net assets. If the performance of an acquired company falls below its initial plan due to economic trends, new market entry by competitors, changes in consumer trends or other factors, impairment losses on fixed assets may arise.」
Regarding the risk of acquired companies failing to achieve the expected benefits, the company has specified that goodwill related to acquisitions amounts to ¥54.0 billion, or 34% of net assets. - FY2018First statedAnnual report
「Our group has set out a growth strategy in its new medium-term management plan, "Towards a Further Leap2020," and will continue to consider acquisitions and other measures to secure a global competitive advantage. However, if the expected benefits are not achieved due to various unforeseen uncertainties, the operating results and financial condition of our group may be adversely affected.」
While positioning future acquisitions as a means of growth, the company has newly identified the risk of failing to achieve the expected benefits of acquisitions.