Recognition of Special Losses and Other Items and Variance Between Earnings Forecast and Actual Results
NICHIRYOKU CO.,LTD. (the Company)
The grave business, the columbarium business, certain cemeteries, and certain operating assets belonging to the grave business
At certain cemeteries, the collection period for deposits paid was expected to become longer than initially anticipated, based on sales trends, collection prospects and other factors. Other factors were lower-than-expected sales and reduced profitability in the grave business, fewer contracts than expected in the existing grave business, declines in visitors and contracts in the columbarium business resulting from measures to improve the cost-effectiveness of advertising expenses, and failure to establish the staffing structure for new initiatives as planned.
¥217.861 million in non-operating expenses (write-down of deposits paid through an increase in the allowance for doubtful accounts) and ¥368.121 million in special losses (impairment loss)
Full fiscal year ending March 2026
Actual results for the fiscal year ending March 2026 fell below the previously announced forecast. Net sales were ¥2,500 million versus ¥1,709 million, operating profit was ¥210 million versus an operating loss of ¥485 million, ordinary profit was ¥120 million versus an ordinary loss of ¥764 million, and net income was ¥990 million versus a net loss of ¥207 million.
| Item | Details |
|---|---|
| Event name | Recognition of Special Losses and Other Items and Variance Between Earnings Forecast and Actual Results |
| Subject Entity | NICHIRYOKU CO.,LTD. (the Company) |
| Target Locations / Products | The grave business, the columbarium business, certain cemeteries, and certain operating assets belonging to the grave business |
| Cause | At certain cemeteries, the collection period for deposits paid was expected to become longer than initially anticipated, based on sales trends, collection prospects and other factors. Other factors were lower-than-expected sales and reduced profitability in the grave business, fewer contracts than expected in the existing grave business, declines in visitors and contracts in the columbarium business resulting from measures to improve the cost-effectiveness of advertising expenses, and failure to establish the staffing structure for new initiatives as planned. |
| Amount of Impact on Business Performance | ¥217.861 million in non-operating expenses (write-down of deposits paid through an increase in the allowance for doubtful accounts) and ¥368.121 million in special losses (impairment loss) |
| Accounting period in which recognized | Full fiscal year ending March 2026 |
| Impact on Earnings Forecast | Actual results for the fiscal year ending March 2026 fell below the previously announced forecast. Net sales were ¥2,500 million versus ¥1,709 million, operating profit was ¥210 million versus an operating loss of ¥485 million, ordinary profit was ¥120 million versus an ordinary loss of ¥764 million, and net income was ¥990 million versus a net loss of ¥207 million. |
Items this document does not state (18)
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.Based on sales trends and collection prospects at certain cemeteries, the collection period for deposits paid was expected to become longer, so the deposits were written down. In addition, sales in the grave business fell below expectations, reducing profitability. After reviewing the future recoverability of operating assets used in the business, the Company recognized an impairment loss. Factors behind the shortfall in net sales included fewer contracts than expected in the existing grave business, declines in visitors and contracts in the columbarium business, and delays in establishing the staffing structure for new initiatives.