Notice Regarding the Recognition of an Extraordinary Loss (Impairment Loss) and Income Taxes—Deferred (Loss), Differences Between Consolidated Earnings Forecasts and Actual Results, and Differences Between Non-Consolidated Results and Results for the Previous Fiscal Year
Sanyodo Holdings Inc. (the filing company) and the group companies included in the consolidated financial statements
Fixed assets, including buildings, at stores where declining profitability is expected
Impairment losses were recorded for stores where declining profitability is expected. Deferred income tax expense was recorded after carefully assessing the recoverability of deferred tax assets in light of the outlook for future performance and other factors. The difference from the earnings forecast was attributable to factors including higher gross profit, supported by solid performance in the trading card, stationery, miscellaneous goods and food businesses, among others.
The Company recorded consolidated impairment losses of ¥50 million and individual impairment losses of ¥46 million as extraordinary losses. Deferred income tax expense of ¥61 million was recorded as tax expense in both the consolidated and individual financial statements. In the individual financial statements, a reversal of the allowance for doubtful accounts for affiliates of ¥46 million was recorded as non-operating income, along with a gain on the sale of investment securities of ¥182 million.
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
Differences arose between the consolidated earnings forecast announced on 13 February 2026 and the actual results announced today. Net sales were ¥17,249 million, operating income was ¥268 million, ordinary income was ¥279 million, net income attributable to owners of the parent was ¥340 million, and net income per share was ¥46.74. The changes from the previously announced forecasts were 1.5% for net sales, 79.0% for operating income, 64.5% for ordinary income, and 70.2% for net income attributable to owners of the parent.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of an Extraordinary Loss (Impairment Loss) and Income Taxes—Deferred (Loss), Differences Between Consolidated Earnings Forecasts and Actual Results, and Differences Between Non-Consolidated Results and Results for the Previous Fiscal Year |
| Subject Entity | Sanyodo Holdings Inc. (the filing company) and the group companies included in the consolidated financial statements |
| Target Locations / Products | Fixed assets, including buildings, at stores where declining profitability is expected |
| Cause | Impairment losses were recorded for stores where declining profitability is expected. Deferred income tax expense was recorded after carefully assessing the recoverability of deferred tax assets in light of the outlook for future performance and other factors. The difference from the earnings forecast was attributable to factors including higher gross profit, supported by solid performance in the trading card, stationery, miscellaneous goods and food businesses, among others. |
| Amount of Impact on Business Performance | The Company recorded consolidated impairment losses of ¥50 million and individual impairment losses of ¥46 million as extraordinary losses. Deferred income tax expense of ¥61 million was recorded as tax expense in both the consolidated and individual financial statements. In the individual financial statements, a reversal of the allowance for doubtful accounts for affiliates of ¥46 million was recorded as non-operating income, along with a gain on the sale of investment securities of ¥182 million. |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | Differences arose between the consolidated earnings forecast announced on 13 February 2026 and the actual results announced today. Net sales were ¥17,249 million, operating income was ¥268 million, ordinary income was ¥279 million, net income attributable to owners of the parent was ¥340 million, and net income per share was ¥46.74. The changes from the previously announced forecasts were 1.5% for net sales, 79.0% for operating income, 64.5% for ordinary income, and 70.2% for net income attributable to owners of the parent. |
Items this document does not state (18)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The impairment losses were recorded in accordance with the Accounting Standard for Impairment of Fixed Assets for fixed assets, including buildings, at stores where declining profitability is expected. Deferred income tax expense was recorded after carefully assessing the recoverability of deferred tax assets in light of the outlook for future performance and other factors. The Company attributed the results exceeding the forecast to higher gross profit, supported by solid performance in the trading card, stationery, miscellaneous goods and food businesses, among others.