Deterioration in Business Performance Due to Political Instability and Economic Stagnation in Brazil
First written in FY2016. 2 of 6 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2025.
Omikenshi moved to the "Worse" side of this theme in 2017, 1 year before the typical company in this theme (2018).
The whole theme swung hardest in 2021: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「March 2024 Omi do Brazil Textile Co., Ltd. liquidated.」
The company disclosed in its corporate history that the Brazilian subsidiary was liquidated in March 2024 after ceasing operations. The subsidiary's direct exposure to Brazil's political and economic environment has declined. - FY2021-Q3MaterialisedAnnual report
「Factors with a material impact on the performance of the group include foreign exchange losses at the consolidated subsidiary in Brazil and the implementation of the business restructuring plan.」
Foreign exchange losses at the consolidated subsidiary in Brazil continue to be cited as a material factor affecting performance. The income statement for the nine months ended 31 December of the current fiscal year recorded a foreign exchange loss of ¥419 million. - FY2017WorsenedAnnual report
「In the textile segment, the textile business and the consolidated subsidiary in Brazil reported lower revenue and profit than in the same period of the previous year. As a result, the textile segment as a whole reported revenue of ¥9,459 million, down 13.5% year on year, and a segment loss of ¥662 million, compared with a segment loss of ¥315 million in the same period of the previous year. The consolidated subsidiary in Brazil ceased operations at the end of November 2016.」
The decline in revenue and profit in the textile business, including the Brazilian subsidiary, was confirmed for the full year, and the subsidiary ceased operations at the end of November 2016. - FY2017-Q2WorsenedAnnual report
「In recent years, the market has contracted as imports of products into Brazil increased, while profitability has deteriorated due to persistent cost increases and intensifying competition. Performance then deteriorated sharply as the Brazilian economy stagnated from the year before last.」
The company explained that the Brazilian subsidiary experienced a sharp deterioration in performance due to market contraction, higher costs, intensifying competition and economic stagnation. - FY2017-Q1RestatedAnnual report
「The rayon and cotton business and the consolidated subsidiary in Brazil reported lower revenue and profit than in the same quarter of the previous year.」
The Brazilian subsidiary continues to report lower revenue and profit. In the current quarter's disclosure, the decline is not directly attributed to political instability or economic stagnation in Brazil. - FY2016First statedAnnual report
「The consolidated subsidiary in Brazil was significantly affected by the country's political instability and economic stagnation, resulting in a substantial deterioration in performance.」
The impact of political instability and economic stagnation on the Brazilian subsidiary is now evident in actual declines in revenue and profit.