Goodwill Impairment Due to Deteriorating Conditions in the Pharmacy Business
First written in FY2023. 1 of 4 entries say "Materialised", first in FY2023. Latest entry: FY2026.
Vital Ksk Holdings moved to the "Worse" side of this theme in 2026, 6 years after the typical company in this theme (2020).
The whole theme swung hardest in 2023: 7 of 13 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Because a relatively large amount of the acquisition cost had been allocated to this goodwill, an indication of impairment was identified at the end of the current fiscal year. In determining whether an impairment loss should be recognized, the company estimated undiscounted future cash flows based on the medium-term management plan approved by the Board of Directors of 八千代ケアサポート㈱, treating the entire company as a single asset group.」
In addition to the existing pharmacy business, an indication of impairment was identified for 八千代ケアサポート's ¥2,051 million of goodwill. However, because undiscounted future cash flows exceeded the carrying amount, the company determined that no impairment loss needed to be recognized for the current fiscal year. - FY2025RestatedAnnual report
「However, no indication of impairment of goodwill was identified during the current fiscal year.」
Following the goodwill impairment in the pharmacy business in the previous fiscal year, the company has reconfirmed its assessment that there was no indication of impairment in the current fiscal year. - FY2024MitigatedAnnual report
「However, no indication of impairment of goodwill was identified during the current fiscal year.」
The company states that no indication of impairment was identified during the current fiscal year for the goodwill impaired in the previous fiscal year following deterioration in the pharmacy business environment. - FY2023MaterialisedAnnual report
「The operating environment surrounding the pharmacy industry has deteriorated significantly due to lower gross profit margins and higher expenses resulting from revisions to drug prices and dispensing reimbursement points. As profits anticipated in the medium-term management plan could no longer be expected, the plan was revised during the current fiscal year. As a result, the total undiscounted future cash flows fell below the carrying amount of the fixed assets of 株式会社オオノ, including goodwill, and an impairment loss of ¥1,713 million was recognized on the goodwill during the current fiscal year.」
Deterioration in the pharmacy business environment due to revisions to drug prices and dispensing reimbursements has resulted in an actual impairment loss of ¥1,713 million on オオノ's goodwill.