Temporary deterioration in cash flow due to investment in a business model change
First written in FY2025-H1. 2 of 4 entries say "Mitigated", first in FY2026-H1. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026MitigatedAnnual report
「Financially, following the completion of the investment in business-format conversions, we are focusing on stabilizing the stores in which we invested and improving their profitability, while working to secure working capital and maintain cash levels.」
Having determined that investment in the business-format transformation has run its course, the company is shifting its response to the risk of temporary deterioration in cash flow toward stabilizing investment stores, improving earnings power, and securing working capital. - FY2026-H1MitigatedAnnual report
「Financially, following the completion of the investment in business-format conversions, we are focusing on stabilizing the stores in which we invested and improving their profitability, while working to secure working capital and maintain cash levels.」
The Company considers investment in business-format conversions to have run its course and has shifted its response to the risk of a temporary deterioration in cash flow associated with the investments toward stabilizing the stores in which it invested, improving their profitability and securing working capital. - FY2025MaterialisedAnnual report
「For the fiscal year ending June 2025, we proceeded with the renovation of 7 stores, including business-format conversions that were not included in the plan at the beginning of the fiscal year. This also involved periods of closure during the conversions and increased costs for opening the stores.」
The Company stated that periods of closure associated with business-format conversions and increased opening costs had actually occurred. The risk of funding pressure associated with business-format conversions and capital investment has materialized. - FY2025-H1First statedAnnual report
「Given the trend of gradually increasing construction costs for stores, we are considering accelerating business-format conversions to support a recovery in performance, although this may result in a temporary deterioration in cash flow.」
While accelerating business-format conversions, the Company has identified as a new risk the possibility of a temporary deterioration in cash flow due to rising store construction costs.