Continuing unprofitable stores and the emergence of impairment risk
First written in FY2016. 17 of 36 entries say "Mitigated", first in FY2017-Q2. Latest entry: FY2026.
Asmo moved to the "Worse" side of this theme in 2018, 1 year after the typical company in this theme (2017).
The whole theme swung hardest in 2017: 12 of 15 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In the ASMO CATERING (HK) business, because the profits and losses generated by the operations of 2 stores at the above locations remained negative, their carrying amounts were reduced to recoverable amounts, and the reduction of ¥2.154 million was recorded as an impairment loss under extraordinary losses.」
The 2 stores in Hong Kong continued to post operating losses and generated an impairment loss, but the impairment amount narrowed from ¥16.455 million in the previous year to ¥2.154 million, and the Hong Kong business as a whole swung from a loss to a profit. - FY2026-H1MitigatedAnnual report
「Stronger control over expenses such as labor costs reduced the loss at the earnings level by more than half from the previous year. Going forward, the company will ask developers to review rents at unprofitable stores when each store's lease is renewed, and will vacate stores if agreement cannot be reached, with the aim of returning the food-service business to profitability.」
In the Hong Kong food-service business, expense controls reduced the loss by more than half from the previous year. The company has indicated a policy of reducing risk by seeking rent reviews at unprofitable stores and vacating them if agreement cannot be reached. - FY2025-H1MitigatedAnnual report
「The store's loss, which had been placing significant pressure on earnings, will no longer occur.」
The company explained that the loss continuously generated by the Kaita store in Hong Kong will be eliminated following its vacation upon lease expiry. While action has been taken to address the unprofitable-store risk, the Hong Kong business posted an operating loss of ¥55 million in the current interim period. - FY2024MaterialisedAnnual report
「In the ASMO CATERING (HK) business, because the profits and losses generated by the operations of 1 store at the above location remained negative, its carrying amount was reduced to its recoverable amount, and the reduction of ¥15.535 million was recorded as an impairment loss under extraordinary losses.」
The operating loss at 1 store in Kaita, Hong Kong, continued, and an impairment loss of ¥15.535 million was recorded. The risk of an unprofitable store has materialized as an accounting loss. - FY2024-Q3WorsenedAnnual report
「As a result, revenue for the first nine months of the fiscal year was ¥1,880 million, up 1.9% year on year, while the segment loss (operating loss) was ¥42 million, compared with segment profit of ¥2 million in the same period of the previous year.」
Revenue in the Hong Kong business increased 1.9% year on year, but it swung from a ¥2 million profit in the same period of the previous year to a ¥42 million loss. Earnings risk has worsened again due to the weak store business and the elimination of subsidies. - FY2024-Q2WorsenedAnnual report
「As a result, revenue for the first six months of the fiscal year was ¥1,261 million, up 6.1% year on year, while the segment loss (operating loss) was ¥25 million, compared with segment profit of ¥21 million in the same period of the previous year.」
Revenue in the Hong Kong business increased 6.1% year on year, but segment results swung from a ¥21 million profit in the same period of the previous year to a ¥25 million loss. The sluggish performance of the store business and uncertainty surrounding the earnings structure continue. - FY2024-Q1WorsenedAnnual report
「Under these circumstances, recovery in the store business has taken time, and the outlook remains uncertain. Meanwhile, sales in the food processing and sales business continued to expand steadily during the first quarter of the fiscal year, reaching approximately 42% of total segment revenue. A large number of new stores are also planned by Japanese providers, who are expected to become customers, and market expansion is anticipated. In terms of profit, earnings declined from the same period of the previous year because government subsidies related to COVID-19 ended in the previous fiscal year. As a result, revenue for the first quarter of the fiscal year was ¥607 million, up 10.9% year on year, while the segment loss (operating loss) was ¥10 million, compared with segment profit of ¥5 million in the same quarter of the previous year.」
Revenue in the Hong Kong business increased, but it swung from a ¥5 million profit in the same period of the previous year to a ¥10 million loss due to the delayed recovery in the store business and the end of subsidies. Difficult earnings conditions related to unprofitable stores have re-emerged. - FY2023MitigatedAnnual report
「As a result, revenue for the fiscal year was ¥2,476 million, up 35.4% year on year, while the segment loss (operating loss) was ¥8 million, compared with a segment loss of ¥58 million in the previous year.」
The Hong Kong business generated higher revenue, and the segment loss narrowed from ¥58 million to ¥8 million. Earnings risk related to unprofitable stores and impairment has improved. - FY2023-Q3MitigatedAnnual report
「As a result, revenue for the first nine months of the fiscal year was ¥1,845 million, up 24.9% year on year, and segment profit (operating profit) was ¥2 million, up 53.4% year on year.」
The Hong Kong food-service business swung from a segment loss in the same period of the previous year to a profit, and revenue also increased 24.9%. Earnings risk related to unprofitable stores has improved, but profit remained limited to ¥2 million. - FY2023-Q2MitigatedAnnual report
「As a result, revenue for the first six months of the fiscal year was ¥1,188 million, up 28.4% year on year, and segment profit (operating profit) was ¥21 million, compared with segment profit of ¥0 million in the same period of the previous year.」
The Hong Kong food-service business generated higher revenue, and segment profit increased from ¥0 million in the same period of the previous year to ¥21 million. Earnings risk related to unprofitable stores has improved. - FY2023-Q1MitigatedAnnual report
「As a result, revenue for the first quarter of the fiscal year was ¥547 million, up 24.0% year on year, and segment profit (operating profit) was ¥5 million, compared with a segment loss of ¥4 million in the same quarter of the previous year.」
In the Hong Kong food-service business, segment results swung from a ¥4 million loss in the same period of the previous year to a ¥5 million profit, indicating an improvement in earnings risk related to unprofitable stores. - FY2022-Q2MitigatedAnnual report
「As a result, revenue for the first six months of the fiscal year was ¥925 million, up 37.2% year on year, and segment profit (operating profit) was ¥0 million, compared with a segment loss of ¥43 million in the same period of the previous year.」
The Hong Kong food-service business generated higher revenue, and the segment loss narrowed from ¥43 million in the same period of the previous year to ¥0 million, indicating an improvement in terms of losses. - FY2022-Q1MitigatedAnnual report
「As a result, revenue for the first quarter of the fiscal year was ¥363 million, down 29.1% year on year, while the segment loss (operating loss) was ¥18 million, compared with a segment loss of ¥28 million in the same quarter of the previous year.」
Although revenue in the Hong Kong food-service business continued to decline, the segment loss narrowed from ¥28 million in the same period of the previous year to ¥18 million, indicating an improvement in terms of losses. - FY2021WorsenedAnnual report
「In the ASMO CATERING (HK) business, because the profits and losses generated by the operations of 1 store at the above location remained negative, its carrying amount was reduced to its recoverable amount, and the reduction of ¥36.921 million was recorded as an impairment loss under extraordinary losses.」
The operating loss at 1 store in Kaita, Hong Kong, continued, and an impairment loss of ¥36.921 million was recorded. The amount increased from the ¥7.655 million impairment loss recorded in the previous fiscal year. - FY2021-Q3MitigatedAnnual report
「As a result, revenue for the first nine months of the fiscal year was ¥1,033 million, down 27.3% year on year, while the segment loss (operating loss) was ¥34 million, compared with a segment loss of ¥76 million in the same period of the previous year.」
Although revenue in the Hong Kong food-service business continued to decline, the segment loss narrowed from ¥76 million in the same period of the previous year to ¥34 million, indicating an improvement in terms of losses. - FY2021-Q2MitigatedAnnual report
「As a result, revenue for the first six months of the fiscal year was ¥674 million, down 30.9% year on year, while the segment loss (operating loss) was ¥43 million, compared with a segment loss of ¥51 million in the same period of the previous year.」
Although revenue in the Hong Kong food-service business continued to decline, the segment loss narrowed from ¥51 million in the same period of the previous year to ¥43 million, indicating an improvement in terms of losses. - FY2021-Q1MitigatedAnnual report
「As a result, revenue for the first quarter of the fiscal year was ¥363 million, down 29.1% year on year, while the segment loss (operating loss) was ¥18 million, compared with a segment loss of ¥28 million in the same quarter of the previous year.」
Although the Hong Kong food-service business saw a substantial decline in revenue, the segment loss narrowed from ¥28 million in the same period of the previous year to ¥18 million. The disclosure indicates an improvement in the risk of unprofitable operations in some formats, including growth at the prepared-food shop Aya. - FY2020WorsenedAnnual report
「As a result, revenue for the fiscal year was ¥1,792 million, down 18.7% year on year, while the segment loss (operating loss) was ¥130 million, compared with a segment loss of ¥57 million in the previous year.」
The Hong Kong food-service business generated lower revenue, and the segment loss widened from ¥57 million in the previous year to ¥130 million. The impact of unprofitable stores and impairment risk has deepened further. - FY2020-Q3WorsenedAnnual report
「As a result, revenue for the first nine months of the fiscal year was ¥1,420 million, down 14.4% year on year, while the segment loss (operating loss) was ¥76 million, compared with a segment loss of ¥61 million in the same period of the previous year, resulting in lower revenue and lower earnings.」
Revenue in the Hong Kong food-service business fell 14.4% year on year, and the segment loss widened from ¥61 million to ¥76 million. - FY2020-Q2WorsenedAnnual report
「As a result, revenue for the first six months of the fiscal year was ¥976 million, down 16.1% year on year, while the segment loss (operating loss) was ¥51 million, compared with a segment loss of ¥37 million in the same period of the previous year.」
Revenue in the Hong Kong food-service business fell 16.1% year on year, and the segment loss widened from ¥37 million to ¥51 million. Earnings risk related to unprofitable stores has worsened. - FY2020-Q1WorsenedAnnual report
「In the Asmo Trading business, the AEON Chung Wan stores Sakurakuya and Ayazakura-ya were closed in August, and the Cosmos House Kwun Yee store was closed in September due to poor profitability. In August, the Japanese restaurant Imasuke Mong Kok store also closed after failing to secure an extended lease.」
In Hong Kong, poorly performing stores continue to be closed or vacated because lease renewals have not been secured, and risks related to unprofitable stores remain and are becoming more serious. - FY2019WorsenedAnnual report
「Meanwhile, the Imasuke Mong Kok store was forced to vacate in August, and the Takumi Kobo Hideyoshi Yata Shatin store in October. The unprofitable Sakurakuya and Ayazakura-ya stores at AEON Chung Wan were closed in August and the Aya store at PIAGO Telford was closed in November, in each case upon lease expiry. The Cosmos House Kwun Yee store, which had continued to operate at a loss, was closed in September before the end of its lease term.」
Although multiple stores in Hong Kong were vacated or closed, the segment loss widened to ¥57 million, compared with a ¥20 million loss in the same period of the previous year, due to the overlap of initial investment, removal costs and other expenses. An impairment loss of ¥7.175 million was also recorded for the Wanchai store. - FY2019-Q3WorsenedAnnual report
「In the ASMO CATERING (HK) business, Shatin Yata Hideyoshi and Yakimasse closed in October because the food court was closed for renovations at Yata Department Store. At other existing stores, customer traffic per store has been declining amid intensifying competition caused by excessive expansion by Japanese supermarkets and department stores, as has also been the case at other fast-food outlets. Sales at the company's stores therefore continued to struggle. As a result, revenue for the first nine months of the fiscal year was ¥1,660 million, down 3.1% year on year, while the segment loss (operating loss) was ¥61 million, compared with a segment loss of ¥6 million in the same period of the previous year, resulting in lower revenue and lower earnings.」
Two stores in Hong Kong closed, while declining customer traffic caused by excessive expansion by Japanese supermarkets and department stores continued. As a result, the segment loss widened from ¥6 million in the same period of the previous year to ¥61 million. - FY2019-Q2WorsenedAnnual report
「In the Asmo Trading business, the AEON Chung Wan stores Sakurakuya and Ayazakura-ya were closed in August, and the Cosmos House Kwun Yee store was closed in September due to poor profitability. In August, the Japanese restaurant Imasuke Mong Kok store also closed after failing to secure an extended lease. As a result, revenue for the first six months of the fiscal year was ¥1,163 million, up 1.5% year on year, while the segment loss (operating loss) was ¥37 million, compared with segment profit of ¥4 million in the same period of the previous year.」
In Hong Kong, a succession of poorly performing stores were closed or vacated, and the segment swung from a ¥4 million profit in the same period of the previous year to a ¥37 million loss. Risks related to unprofitable stores and lease renewals have worsened. - FY2019-Q1WorsenedAnnual report
「As a result, revenue for the first quarter of the fiscal year was ¥585 million, up 5.9% year on year, while the segment loss (operating loss) was ¥18 million, compared with a segment loss of ¥5 million in the same quarter of the previous year, resulting in higher revenue but lower earnings.」
The Hong Kong food-service business generated higher revenue, but the segment loss widened from ¥5 million in the same period of the previous year to ¥18 million. - FY2018MaterialisedAnnual report
「In the ASMO CATERING (HK) business, because the profits and losses generated by the operations of the 2 stores at the above locations remained negative, their carrying amounts were reduced to recoverable amounts, and the reduction of ¥39.776 million was recorded as an impairment loss under extraordinary losses.」
The company recorded an impairment loss of ¥39.776 million on 2 stores in Chung Wan and Kwun Yee, Hong Kong, due to their persistent operating losses, with the risk of unprofitable stores materializing as an accounting loss. - FY2018-Q3WorsenedAnnual report
「As a result, revenue for the first nine months of the fiscal year was ¥1,713 million, up 5.1% year on year, while the segment loss (operating loss) was ¥6 million, compared with segment profit of ¥4 million in the same period of the previous year.」
The Hong Kong food-service business swung from a ¥4 million profit in the same period of the previous year to a ¥6 million operating loss, reflecting the impact of declining customer traffic at existing stores and intensifying competition. - FY2018-Q2MitigatedAnnual report
「As a result, revenue for the first six months of the fiscal year was ¥1,146 million, up 9.8% year on year, and segment profit (operating profit) was ¥4 million, compared with a ¥1 million loss in the same period of the previous year.」
The Hong Kong food-service business swung from a segment loss in the same quarter of the previous year to a ¥4 million profit, indicating an improvement in earnings. However, the competitive environment at existing stores remained difficult. - FY2018-Q1WorsenedAnnual report
「In the ASMO CATERING (HK) business, conditions remained particularly difficult at existing stores. In June, the Wanchai store underwent a major renovation and changed its name from Ginza Kurando to Ginza Kaguraya. The existing dinner order buffet was also substantially revamped with the addition of shabu-shabu dishes. As a result, revenue for the first quarter of the fiscal year was ¥552 million, up 6.9% year on year, while the segment loss (operating loss) was ¥5 million, compared with a ¥1 million loss in the same quarter of the previous year.」
Difficult conditions continued at existing stores, and the segment loss widened from ¥1 million in the same quarter of the previous year to ¥5 million. Renovations, a name change and menu revamps are being pursued to address unprofitable stores. - FY2017WorsenedAnnual report
「The company also pursued the closure and review of unprofitable stores, but persistently high labor and rental costs resulted in lower revenue and lower earnings. As a result, revenue for the fiscal year was ¥2,180 million, down 9.5% year on year, and segment profit (operating profit) was ¥5 million, down 88.1% year on year.」
Despite efforts to close and review unprofitable stores, revenue fell 9.5% and segment profit fell 88.1% due to persistently high labor and rental costs. - FY2017-Q3RestatedAnnual report
「The company also pursued the closure and review of unprofitable stores, but persistently high labor and rental costs resulted in lower revenue and lower earnings.」
The company continues to address unprofitable stores through closures and reviews, while also reporting pressure on earnings from persistently high labor and rental costs. - FY2017-Q2MitigatedAnnual report
「Meanwhile, the closure of the Chung Wan Santoka and Mid-Levels Cosmos House stores, among other factors, weighed on earnings. In addition, the stronger yen caused a substantial year-on-year decline in earnings in the logistics segment.」
While the company is addressing unprofitable stores by closing existing locations, the segment posted a ¥1 million loss in the current quarter due to the impact of closures and the stronger yen, leaving earnings risk in place. - FY2016First statedAnnual report
「Because the ASMO CATERING (HK) business has continued to generate losses from operating activities, the carrying amount was reduced to its recoverable amount, and the reduction of ¥11.239 million was recognized as an impairment loss under extraordinary losses.」
The company recorded an impairment loss of ¥11.239 million on 2 stores in Hong Kong due to their persistently negative operating results, with the risk materializing as an actual accounting loss.