Significant Events and Uncertainties Concerning the Going Concern Assumption
First written in FY2020-Q2. 17 of 25 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2026.
Sanko Marketing Foods moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 26 of 48 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「For the consolidated fiscal year, we recorded an operating loss of ¥635 million, an ordinary loss of ¥618 million and a net loss attributable to owners of the parent of ¥793 million, while operating cash flow was negative ¥535 million.」
Material events that raise substantial doubt about the going-concern assumption continued, and the company recorded full-year operating, ordinary and net losses as well as negative operating cash flow. Net assets also declined to ¥62 million. - FY2026-H1WorsenedAnnual report
「Due to declining demand for large, multi-level full-service izakaya restaurants in prime locations in the Tokyo metropolitan area and the spread of COVID-19, the Company recorded operating losses for 8 consecutive fiscal years through the previous fiscal year. The Company has prepared consolidated financial statements since the fiscal year ended June 2022 and recorded operating losses for 4 consecutive consolidated fiscal years through the previous consolidated fiscal year. During the interim consolidated period, it recorded an operating loss of ¥333 million, an ordinary loss of ¥307 million and an interim net loss attributable to owners of the parent of ¥315 million, leaving net assets of ¥401 million at the end of the interim consolidated period.」
On a non-consolidated basis, operating losses continued for 8 consecutive fiscal years through the previous fiscal year, while on a consolidated basis, they continued for 4 consecutive fiscal years through the previous consolidated fiscal year, extending the period of consecutive losses from the previous disclosure. The Company also recorded an operating loss of ¥333 million and other losses during the interim period, and material events continued. - FY2025-H1WorsenedAnnual report
「Due to declining demand for large, multi-level full-service izakaya restaurants in prime locations in the Tokyo metropolitan area and the spread of COVID-19, the Company recorded operating losses for 7 consecutive fiscal years through the previous fiscal year. The Company has prepared consolidated financial statements since the fiscal year ended June 2022 and recorded operating losses for 3 consecutive consolidated fiscal years through the previous consolidated fiscal year. During the interim consolidated period, it recorded an operating loss of ¥345 million, an ordinary loss of ¥314 million and an interim net loss attributable to owners of the parent of ¥334 million, leaving net assets of ¥258 million at the end of the interim consolidated period.」
On a non-consolidated basis, operating losses continued for 7 consecutive fiscal years, while on a consolidated basis, they continued for 3 consecutive fiscal years through the previous consolidated fiscal year. The Company also recorded an operating loss of ¥345 million and other losses during the interim consolidated period, leaving net assets at ¥258 million. Meanwhile, the Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future. - FY2024Operating loss narrowed, but operating cash flow worsened and material events continuedAnnual report
「During the consolidated fiscal year, the Company recorded an operating loss of ¥683 million, an ordinary loss of ¥683 million and a net loss attributable to owners of the parent of ¥711 million. Operating cash flow was negative ¥880 million.」
The operating, ordinary and net losses narrowed from the previous year, while operating cash flow was negative ¥880 million, and events raising substantial doubt about the going concern assumption continued. - FY2024-Q3Losses narrowed and net assets recovered, but material events continuedAnnual report
「During the cumulative third quarter, the Company recorded an operating loss of ¥450 million, an ordinary loss of ¥452 million and a quarterly net loss attributable to owners of the parent of ¥459 million, leaving net assets of ¥456 million at the end of the third quarter. Accordingly, events existed that could raise substantial doubt about the going concern assumption. However, after considering its financial position at the end of the third quarter and its future funding plan, the Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future.」
While material events continued, the operating loss and other losses narrowed from the same period of the previous year, leaving net assets of ¥456 million at quarter-end. The Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future. - FY2024-Q2Quarterly losses narrowed and net assets recovered, but material events continuedAnnual report
「During the cumulative second quarter, the Company recorded an operating loss of ¥308 million, an ordinary loss of ¥308 million and a quarterly net loss attributable to owners of the parent of ¥325 million, leaving net assets of ¥500 million at the end of the second quarter. Accordingly, events existed that could raise substantial doubt about the going concern assumption. However, after considering its financial position at the end of the second quarter and its future funding plan, the Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future.」
On a non-consolidated basis, operating losses continued for 6 consecutive fiscal years, while on a consolidated basis, operating losses continued for 2 consecutive fiscal years, and material events continued. Meanwhile, quarterly losses narrowed from the same period of the previous year, and net assets increased from ¥375 million at the end of the previous consolidated fiscal year to ¥500 million. The Company determined that there were no concerns regarding continuity for the foreseeable future. - FY2024-Q1Operating losses for 6 consecutive fiscal years; quarterly losses narrowedAnnual report
「Due to declining demand for large, multi-level full-service izakaya restaurants in prime locations in the Tokyo metropolitan area and the spread of COVID-19, the Company recorded operating losses for 6 consecutive fiscal years through the previous fiscal year. The Company has prepared consolidated financial statements since the fiscal year ended June 2022 and recorded operating losses for 2 consecutive consolidated fiscal years through the previous consolidated fiscal year. During the cumulative first quarter, it recorded an operating loss of ¥134 million, an ordinary loss of ¥135 million and a quarterly net loss attributable to owners of the parent of ¥142 million, leaving net assets of ¥358 million at the end of the first quarter.」
While the consecutive period of operating losses on a non-consolidated basis extended from 5 to 6 fiscal years, the consolidated first-quarter operating, ordinary and net losses narrowed from the same period of the previous year. Material events continued, but the Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future. - FY2023Operating loss narrowed, but ordinary and net losses and operating cash flow worsenedAnnual report
「During the consolidated fiscal year, the Company recorded an operating loss of ¥748 million, an ordinary loss of ¥749 million and a net loss attributable to owners of the parent of ¥784 million. Operating cash flow was negative ¥769 million.」
Events raising substantial doubt about the going concern assumption continued. While the operating loss narrowed from the previous year, the Company reported an ordinary loss, a net loss and negative operating cash flow. - FY2023-Q3WorsenedAnnual report
「During the cumulative third quarter, due partly to the impact of the seventh wave of COVID-19, the Company recorded an operating loss of ¥531 million, an ordinary loss of ¥526 million and a quarterly net loss attributable to owners of the parent of ¥545 million, leaving net assets of ¥110 million at the end of the third quarter.」
In addition to operating losses for 5 consecutive fiscal years, the Company recorded an operating loss of ¥531 million, an ordinary loss of ¥526 million and a net loss of ¥545 million during the cumulative third quarter, leaving net assets at ¥110 million. Events raising substantial doubt about the going concern assumption continued. - FY2023-Q2WorsenedAnnual report
「During the cumulative second quarter, due partly to the impact of the seventh wave of COVID-19, the Company recorded an operating loss of ¥356 million, an ordinary loss of ¥351 million and a quarterly net loss attributable to owners of the parent of ¥361 million, leaving net assets of ¥188 million at the end of the second quarter.」
In addition to operating losses for 5 consecutive fiscal years, the Company recorded an operating loss of ¥356 million and other losses during the cumulative second quarter, leaving net assets of ¥188 million at quarter-end. Material events continued. - FY2023-Q1WorsenedAnnual report
「Due to the recent decline in demand for full-service izakaya restaurants, the Company recorded operating losses for 5 consecutive fiscal years through the previous fiscal year. The Company has prepared consolidated financial statements since the fiscal year ended June 2022 and recorded an operating loss in the previous consolidated fiscal year. During the cumulative first quarter, due partly to the impact of the seventh wave of COVID-19, it recorded an operating loss of ¥186 million, an ordinary loss of ¥185 million and a quarterly net loss attributable to owners of the parent of ¥187 million, leaving net assets of ¥373 million at the end of the first quarter.」
Regarding material events related to the going concern assumption, the consecutive period of operating losses extended to 5 fiscal years, and the Company recorded an operating loss of ¥186 million and other losses during the first quarter, leaving net assets at ¥373 million. - FY2022RestatedAnnual report
「Accordingly, events or circumstances existed that could raise substantial doubt about the going concern assumption. However, after considering its future funding plan, the Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future. The key assumption used in preparing the funding plan was the expected recovery in food-service demand, which had declined due to the impact of COVID-19. In addition, because the Company was implementing measures to improve these events or circumstances, as described below, it determined that no material uncertainty related to the going concern assumption existed.」
While stating that events raising substantial doubt about the going concern assumption continued to exist, the Company reiterated its view that there were no concerns regarding continuity for the foreseeable future and no material uncertainty, based on its funding plan and response measures. - FY2022-Q3WorsenedAnnual report
「Due to the recent decline in demand for full-service izakaya restaurants, the Company recorded operating losses for 4 consecutive fiscal years through the previous fiscal year. During the state of emergency and priority preventive measures periods related to the spread of COVID-19, directly operated stores were almost entirely closed, while contract-operated stores shortened their operating hours. Due to the significant decline in revenue, the Company recorded an operating loss of ¥849 million, an ordinary loss of ¥143 million and a quarterly net loss attributable to owners of the parent of ¥179 million, and net assets were ¥815 million at the end of the third quarter.」
In addition to operating losses for 4 consecutive fiscal years, the Company recorded an operating loss of ¥849 million and other losses during the cumulative third quarter, leaving net assets at ¥815 million. Material events continued, but the Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future. - FY2022-Q2RestatedAnnual report
「Accordingly, events existed that could raise substantial doubt about the going concern assumption. However, after considering its financial position at the end of the second quarter and its future funding plan, the Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future.」
While material events continued to exist due to operating losses for 4 consecutive fiscal years and other factors, the Company stated that, based on its financial position and funding plan, there were no concerns regarding continuity for the foreseeable future. - FY2022-Q1WorsenedAnnual report
「Due to the recent decline in demand for full-service izakaya restaurants, the Company recorded operating losses for 4 consecutive fiscal years through the previous fiscal year. As the state of emergency related to COVID-19 continued throughout the cumulative first quarter, directly operated stores were almost entirely closed, while contract-operated stores substantially shortened their operating hours. As a result of the significant decline in revenue, the Company recorded an operating loss of ¥417 million, an ordinary profit of ¥11 million and a quarterly net loss of ¥2 million, and net assets were ¥485 million at the end of the first quarter.」
The Company disclosed operating losses for 4 consecutive fiscal years, the near-total closure of directly operated stores, a significant decline in revenue and net assets of ¥485 million, with material events related to the going concern assumption continuing. - FY2021-Q3WorsenedAnnual report
「Due to the recent decline in demand for full-service izakaya restaurants, the Company recorded operating losses for 3 consecutive fiscal years through the previous fiscal year. During the cumulative third quarter, in addition to this situation, revenue declined due to the state of emergency declared by the government to prevent the spread of COVID-19, requests from local governments to shorten operating hours and customers’ desire to avoid the 3 Cs—closed spaces, crowded places and close-contact settings—and the Company recognized impairment losses and other items. As a result, it recorded an operating loss of ¥1,317 million, an ordinary loss of ¥1,180 million and a quarterly net loss of ¥1,488 million.」
Amid continuing declines in demand for full-service izakaya restaurants and the impact of COVID-19, the Company recorded operating losses for 3 consecutive fiscal years and an operating loss of ¥1,317 million and other losses during the cumulative third quarter, worsening the material event related to the going concern assumption. - FY2021-Q2WorsenedAnnual report
「Due to the recent decline in demand for full-service izakaya restaurants, the Company recorded operating losses for 3 consecutive fiscal years through the previous fiscal year. During the cumulative second quarter, in addition to this situation, revenue declined due to requests from local governments to shorten operating hours to prevent the spread of COVID-19 and customers’ desire to avoid the 3 Cs—closed spaces, crowded places and close-contact settings—and the Company recognized impairment losses and other items. As a result, it recorded an operating loss of ¥857 million, an ordinary loss of ¥839 million and a quarterly net loss of ¥1,109 million.」
In addition to declining demand for full-service izakaya restaurants, losses increased during the cumulative second quarter due to requests for infection-control measures, customer sentiment and impairment losses, and events raising substantial doubt about the going concern assumption continued. - FY2020WorsenedAnnual report
「The Company recorded operating losses for 2 consecutive fiscal years through the previous fiscal year. In the current fiscal year, it recorded an operating loss of ¥2,009 million, an ordinary loss of ¥1,998 million and a net loss of ¥2,713 million.」
In addition to operating losses for 2 consecutive fiscal years, the Company recorded an operating loss of ¥2,009 million and other losses during the fiscal year, worsening the material event related to the going concern assumption on an annual basis. - FY2020-Q3WorsenedAnnual report
「The Company recorded an operating loss of ¥995 million, an ordinary loss of ¥975 million and a net loss of ¥1,569 million in the previous fiscal year. As it had recorded an operating loss of ¥493 million in fiscal 2017, it has continued to record operating losses. During the cumulative third quarter, it also recorded an operating loss of ¥986 million, an ordinary loss of ¥977 million and a quarterly net loss of ¥1,992 million due to lower revenue, a higher personnel expense ratio and recognition of impairment losses.」
Operating losses continued from fiscal 2017, and the Company recorded an operating loss of ¥986 million and a net loss of ¥1,992 million during the cumulative third quarter, resulting in the disclosure of a worsening material event related to the going concern assumption. - FY2020-Q2First statedAnnual report
「The Company recorded an operating loss of ¥995 million and negative operating cash flow in the previous fiscal year. During the cumulative second quarter, it also recorded an operating loss of ¥517 million, an ordinary loss of ¥510 million, a net loss of ¥1,139 million and negative operating cash flow, mainly due to lower revenue and a higher personnel expense ratio. In addition, as stated in the notice regarding the revision of the full-year earnings forecasts for the fiscal year ending June 2020 and recognition of extraordinary losses announced on 14 February 2020, the Company expects to record an operating loss for the fiscal year.」
The Company explicitly stated for the first time that events and circumstances existed that raised substantial doubt about the going concern assumption. However, after considering its cash balance and cash-flow management, the Company determined that there were no concerns regarding the continuity of business activities for the foreseeable future and that no material uncertainty related to the going concern assumption existed.