Risk That Synergies Will Not Materialize After Business Integration
First written in FY2021-Q3. 2 of 3 entries say "Mitigated", first in FY2022. Latest entry: FY2027-H1.
The whole theme swung hardest in 2018: 13 of 78 companies on the "Worse" side.
16 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「From the third quarter onward, we plan to replace systems sequentially and, by changing our logistics and merchandise flows, realize synergies by leveraging the Aeon Group's economies of scale while continuing to develop stores that will earn greater patronage from customers in the region.」
Regarding the benefits of integration with Tokiwa Industry, the company has specified measures including system replacement, changes to logistics and merchandise flows, and the use of the Group's economies of scale. - FY2022MitigatedAnnual report
「As a result of improved food gross profit margins from the management integration and tenant revenue exceeding the previous-year level following events held using store space,」
The company itself has described the realization of integration benefits, including improved food gross profit margins and higher tenant revenue after the management integration, indicating progress in addressing the risk that integration benefits may not materialize. - FY2021-Q3First statedAnnual report
「If the synergies expected from the management integration are not fully realized, this could affect our business operations, results of operations and financial position.」
The company has identified as a new risk the potential impact on business operations, results of operations and financial position if the expected synergies are not fully realized after the merger with Maxvalu Kyushu and Aeon Store Kyushu.