Notice Regarding the Recording of an Impairment Loss (Consolidated) and Revisions to Earnings Forecasts
トライコー・パッケージング＆ロジスティクス社, a consolidated subsidiary of Rengo Co.,Ltd.
トライコー社 in Germany; property, plant and equipment, goodwill and intangible assets related to the company; and the heavy-duty corrugated packaging business in Europe. The new plant in North Rhine-Westphalia in northwestern Germany and the plant in Bavaria in southern Germany.
The profitability of the heavy-duty corrugated packaging business in Europe deteriorated due in part to the recent downturn in the European automotive industry, causing the performance of トライコー社 to fall below the initial plan.
Impairment loss of ¥18,910 million (extraordinary loss)
Fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
The full-year consolidated earnings forecasts have been revised. Revenue remains unchanged at ¥1,005,000 million. Operating profit has been revised from ¥40,000 million to ¥37,000 million, ordinary profit from ¥40,000 million to ¥37,000 million, and net income attributable to owners of the parent from ¥24,000 million to ¥21,000 million. The annual dividend forecast remains unchanged.
Although a short-term recovery in Europe's automotive-related industries is expected to be difficult, the Company will strengthen its sales structure to expand supplies to other industries, including chemicals. In fiscal 2026, it will stably supply heavy-duty corrugated packaging to group companies in Germany and other European countries and establish an optimal logistics network by utilizing the 2 plants in Germany. The Company aims to achieve a medium- to long-term recovery in performance by integrating unprofitable sites into other facilities to reduce fixed costs, strengthening its customer base and improving productivity.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recording of an Impairment Loss (Consolidated) and Revisions to Earnings Forecasts |
| Date of occurrence | The impairment loss will be recognized in the fiscal year ending March 2026 (1 April 2025 to 31 March 2026). |
| Subject Entity | トライコー・パッケージング＆ロジスティクス社, a consolidated subsidiary of Rengo Co.,Ltd. |
| Target Locations / Products | トライコー社 in Germany; property, plant and equipment, goodwill and intangible assets related to the company; and the heavy-duty corrugated packaging business in Europe. The new plant in North Rhine-Westphalia in northwestern Germany and the plant in Bavaria in southern Germany. |
| Cause | The profitability of the heavy-duty corrugated packaging business in Europe deteriorated due in part to the recent downturn in the European automotive industry, causing the performance of トライコー社 to fall below the initial plan. |
| Amount of Impact on Business Performance | Impairment loss of ¥18,910 million (extraordinary loss) |
| Accounting period in which recognized | Fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The full-year consolidated earnings forecasts have been revised. Revenue remains unchanged at ¥1,005,000 million. Operating profit has been revised from ¥40,000 million to ¥37,000 million, ordinary profit from ¥40,000 million to ¥37,000 million, and net income attributable to owners of the parent from ¥24,000 million to ¥21,000 million. The annual dividend forecast remains unchanged. |
| Outlook | Although a short-term recovery in Europe's automotive-related industries is expected to be difficult, the Company will strengthen its sales structure to expand supplies to other industries, including chemicals. In fiscal 2026, it will stably supply heavy-duty corrugated packaging to group companies in Germany and other European countries and establish an optimal logistics network by utilizing the 2 plants in Germany. The Company aims to achieve a medium- to long-term recovery in performance by integrating unprofitable sites into other facilities to reduce fixed costs, strengthening its customer base and improving productivity. |
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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 profitability of the heavy-duty corrugated packaging business in Europe deteriorated due in part to the recent downturn in the European automotive industry, causing the performance of トライコー社 to fall below the initial plan. The downward revision to the earnings forecasts is also attributed to the deterioration in profitability of the heavy-duty corrugated packaging business in Europe and related factors.