Risk of inventory write-downs due to slow-moving inventory and declining profitability
First written in FY2023. 2 of 4 entries say "Materialised", first in FY2024-Q2. Latest entry: FY2026.
Adjuvant Holdings moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 11 of 37 companies on the "Worse" side.
36 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Ending inventory is stated after write-downs due to declining profitability, and the following inventory valuation loss (a negative figure represents a reversal gain) is included in cost of sales. Current consolidated fiscal year: △¥37.172 million」
The inventory valuation loss resulted in a reversal gain of ¥37.172 million, compared with an inventory valuation loss of ¥74.911 million in the previous fiscal year. - FY2024-Q3MaterialisedAnnual report
「In terms of profit, although sales increased, inventory write-downs, higher advertising, communications, travel and transportation and depreciation expenses, among others, and an insurance surrender loss resulted in operating profit of ¥94 million, compared with operating profit of ¥242 million in the same period of the previous year, and ordinary profit of ¥101 million, compared with ordinary profit of ¥273 million.」
An inventory write-down resulting from lower profitability of product inventories was actually cited as a factor reducing profit for the cumulative third-quarter period. - FY2024-Q2MaterialisedAnnual report
「In terms of profit, although revenue increased, the company recorded an operating loss of ¥92 million, compared with operating profit of ¥33 million in the same period of the previous year, due to increases in inventory write-downs, advertising expenses, communications expenses, research and development expenses and sales promotion expenses, as well as a loss on cancellation of insurance policies.」
An inventory write-down resulting from lower profitability of product inventories was actually cited as a factor affecting profit for the cumulative second-quarter period. - FY2023First statedAnnual report
「The amounts for the merchandise and products above are stated after deducting write-downs due to declining profitability of ¥7.623 million in the previous consolidated fiscal year (a negative figure represents a reversal) and ¥39.352 million in the current consolidated fiscal year.」
The company valued merchandise and products totaling ¥898.279 million using forecasts of future sales and recorded a ¥39.352 million write-down due to declining profitability in the current consolidated fiscal year.