Notice Regarding the Recognition of an Impairment Loss, Variances between Earnings Forecasts and Actual Results, Variances between Current and Previous Fiscal Year's Non-Consolidated Results, and the Current Fiscal Year's Dividend (No Dividend)
The Group (filing company: KAPPA・CREATE CO.,LTD.)
85 domestic stores, 2 overseas stores and 1 domestic factory
Following a careful review of future profitability in light of the impact of rising prices for raw materials, energy and other items on performance. The reasons for the difference from the performance forecast were consumers' greater tendency to economize amid rising prices, the failure of initiatives addressing increasingly discerning consumer choices and diverse values to produce the expected results, persistently high raw material and energy prices, and rising personnel expenses.
Impairment loss of ¥715 million (impairment treatment of fixed assets; accounting classification: Not disclosed). Net income attributable to owners of the parent was a loss of ¥394 million, compared with the previously announced forecast of ¥1,444 million.
The fourth quarter consolidated accounting period of the fiscal year ending March 2026 (period covered by the actual results: 1 April 2025 to 31 March 2026)
The differences from the previously announced forecast were net sales of △¥6,924 million, operating income of △¥1,418 million, ordinary income of △¥1,308 million, and net income attributable to owners of the parent of △¥1,838 million. The year-end dividend forecast was changed to no dividend.
The company will continue initiatives to improve profitability and strive to resume dividend payments.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of an Impairment Loss, Variances between Earnings Forecasts and Actual Results, Variances between Current and Previous Fiscal Year's Non-Consolidated Results, and the Current Fiscal Year's Dividend (No Dividend) |
| Date of occurrence | The fourth quarter consolidated accounting period of the current fiscal year (no specific date stated) |
| Subject Entity | The Group (filing company: KAPPA・CREATE CO.,LTD.) |
| Target Locations / Products | 85 domestic stores, 2 overseas stores and 1 domestic factory |
| Cause | Following a careful review of future profitability in light of the impact of rising prices for raw materials, energy and other items on performance. The reasons for the difference from the performance forecast were consumers' greater tendency to economize amid rising prices, the failure of initiatives addressing increasingly discerning consumer choices and diverse values to produce the expected results, persistently high raw material and energy prices, and rising personnel expenses. |
| Amount of Impact on Business Performance | Impairment loss of ¥715 million (impairment treatment of fixed assets; accounting classification: Not disclosed). Net income attributable to owners of the parent was a loss of ¥394 million, compared with the previously announced forecast of ¥1,444 million. |
| Accounting period in which recognized | The fourth quarter consolidated accounting period of the fiscal year ending March 2026 (period covered by the actual results: 1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | The differences from the previously announced forecast were net sales of △¥6,924 million, operating income of △¥1,418 million, ordinary income of △¥1,308 million, and net income attributable to owners of the parent of △¥1,838 million. The year-end dividend forecast was changed to no dividend. |
| Outlook | The company will continue initiatives to improve profitability and strive to resume dividend payments. |
Items this document does not state (16)
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 company cited consumers' greater tendency to economize amid rising prices, the failure of initiatives addressing increasingly discerning consumer choices and diverse values to produce the expected results, and deteriorating performance due to persistently high raw material and energy prices and rising personnel expenses. Following a careful review of future profitability, it determined that the recoverability of fixed assets had declined.