Risk of Excessive Distribution Inventory and Failure to Optimise Inventory Levels
First written in FY2019. 8 of 23 entries say "Worsened", first in FY2025. Latest entry: 2026-08-10.
Happinet moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 14 of 40 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Inventories 8,160 8,689」
The inventory balance increased from ¥8,160 million at the end of the previous fiscal year to ¥8,689 million, indicating that the risk of excess inventory remains. - FY2026-H1WorsenedAnnual report
「This was mainly attributable to an ¥8,832 million increase in notes and accounts receivable, an ¥2,407 million increase in inventories, a ¥2,406 million increase in electronically recorded monetary claims, and a ¥4,436 million decrease in cash and deposits.」
Inventory increased from ¥8,160 million at the end of the previous fiscal year to ¥10,567 million, indicating an increase in distribution inventory and negative operating cash flow of ¥1,488 million. - FY2025WorsenedAnnual report
「Because our group primarily functions as an intermediary distributor, it tends to hold a large amount of inventory. If demand forecasting and distribution inventory optimization in each business do not progress smoothly, they may affect the group's operating performance and financial position.」
The inventory balance increased from ¥7,706 million in the previous fiscal year to ¥8,160 million, indicating that the risk of excess inventory remains. - FY2025-H1Increase in InventoryAnnual report
「Inventory 7,706 9,422」
Inventory increased from ¥770.6 million at 31 March 2024 to ¥942.2 million at 30 September 2024, indicating an increase in distribution inventory during the interim period. - FY2024-Q3Increase in InventoryAnnual report
「Inventory 7,480 11,160」
Inventory increased from ¥748 million at 31 March 2023 to ¥1,116 million at 31 December 2023, indicating a further increase in distribution inventory. - FY2024-Q2Increase in InventoryAnnual report
「Inventory 7,480 9,629」
Inventory increased from ¥748 million at 31 March 2023 to ¥963 million at 30 September 2023, indicating an increase in distribution inventory. - FY2023Inventory balance increased while inventory write-downs decreasedAnnual report
「Because our group primarily functions as an intermediary distributor, it tends to hold a large amount of inventory. If demand forecasting and distribution inventory optimization in each business do not progress smoothly, they may affect the group's operating performance and financial position.」
While ending inventories increased from ¥6,383 million to ¥7,480 million, inventory write-downs decreased from ¥846 million to ¥481 million, indicating that inventory risk is not moving in a single direction. - FY2023-Q3MaterialisedAnnual report
「In the video and music business, sales fell below the same period of the previous year because the business did not have any major hit products compared with the previous year, and sales of video packages in particular struggled. Profit also fell significantly below the same period of the previous year owing to valuation losses on slow-moving inventory and investment losses on productions in which the Company had invested.」
An inventory write-down for slow-moving inventory occurred in the visual and music content business, and the risk associated with optimizing distribution inventory continues to emerge as a factor weighing on profit. - FY2023-Q2MaterialisedAnnual report
「In the visual and music business, revenue and profit both fell below the levels of the same period of the previous year due to the lack of major hit products compared with that period, valuation losses on slow-moving inventory, and investment losses on works resulting from the weak theatrical performance of visual works financed by the company.」
An inventory write-down for slow-moving inventory actually occurred in the visual and music content business, and the risk associated with optimizing inventories continues to emerge as a factor weighing on profit. - FY2023-Q1MaterialisedAnnual report
「In terms of profit, results fell below the same period of the previous year owing to valuation losses on slow-moving inventory and investment losses on video productions in which the Company had invested.」
While inventories increased by ¥2,294 million from the end of the previous fiscal year, an inventory write-down for slow-moving inventory occurred in the visual and music content business, demonstrating the distribution inventory optimization risk in the actual results. - FY2022MitigatedAnnual report
「Because our group primarily functions as an intermediary distributor, it tends to hold a large amount of inventory. We are currently working in each business to improve the accuracy of demand forecasts and optimize distribution inventory, but」
The company continues to improve demand forecast accuracy and optimize distribution inventory, and inventories decreased year on year for the full year. - FY2021MitigatedAnnual report
「For the consolidated fiscal year, growth in net sales and a decrease in inventory valuation losses resulted in an ordinary profit margin on net sales of 1.7% (up 0.7 percentage points year on year) and ROE of 6.7% (up 3.4 percentage points).」
The decrease in inventory write-downs contributed to improved profitability metrics, and the response aimed at optimizing distribution inventory is reflected in the full-year results. - FY2021MitigatedAnnual report
「Sales and profit both significantly exceeded the previous fiscal year due to hit products, the capture of demand in the video games business, which continued to perform strongly, and a decrease in inventory write-downs. …The ratio of ordinary income to net sales was 1.7%, up 0.7 percentage points year on year.」
In addition to hit products and the capture of demand, reduced inventory write-downs eased the pressure on profit from failure to optimize distribution inventory for the full year. - FY2021-Q3MitigatedAnnual report
「In the toys business, sales performed strongly due to strong sales of products for convenience stores, hit products such as Bandai's Demon Slayer: Kimetsu no Yaiba DX Hinokami Kagura Sword, and the entry into the model toy wholesale business following the acquisition of 株式会社イリサワ shares and its conversion into a subsidiary in November 2019. Profit also significantly exceeded the same period of the previous year, reflecting higher profit from strong sales and a decrease in inventory write-downs resulting from the maintenance of appropriate inventory levels.」
The company explains that maintaining appropriate inventory levels reduced inventory write-downs in the toys business and that optimizing distribution inventory led to improved profit. - FY2021-Q2MitigatedAnnual report
「Profit also exceeded the same period of the previous year, owing mainly to a reduction in inventory valuation losses achieved by maintaining appropriate inventory levels.」
Efforts to optimize distribution inventory reduced inventory write-downs in the toys business, and profit exceeded the same period of the previous year. - FY2021-Q1MaterialisedAnnual report
「In the amusement business, sales declined owing to requests to refrain from going out, closures and shortened operating hours at commercial facilities that are customers of the Group, and lower inbound demand. In addition, the recognition of valuation losses on slow-moving inventory resulted in both sales and profit remaining weak.」
Regarding the risk of failing to optimize distribution inventory, an inventory write-down for slow-moving inventory actually occurred in the amusement business, reducing profit. - FY2020-Q3MaterialisedAnnual report
「In the toys business, sales of products for convenience stores, including BANDAI SPIRITS' Ichiban Kuji-related products and Pokémon Card Game-related products, remained strong and exceeded the same period of the previous year. However, character toys, the mainstay products during the year-end peak sales season, performed poorly, and an inventory write-down resulted in profit falling below the same period of the previous year.」
Regarding the risk of failing to optimize distribution inventory, an inventory write-down actually occurred as the result of weak performance by the mainstay character toys, reducing profit. - FY2019First statedAnnual report
「Because our group primarily functions as an intermediary distributor, it tends to hold a large amount of inventory. We are currently working to optimize distribution inventory in each business and advance our sales proposals, but if these initiatives do not progress smoothly, they may affect the group's business performance.」
Against the backdrop of a structurally large inventory balance as an intermediary distributor, the company has identified for the first time the risk of an impact on business performance if distribution inventory optimization and more sophisticated sales proposals do not progress.