Going-concern risk arising from consolidated operating losses and negative operating cash flow
First written in FY2020-Q3. 9 of 22 entries say "Restated". Latest entry: FY2026.
Kan-Nanmaru moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2025: 26 of 48 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As the Company continued to report an operating loss during the fiscal year, cash and deposits and net assets have been declining. Securing liquidity in cash and deposits and fundamentally improving profitability are the most important issues for continuing to make scheduled repayments on borrowings and maintain operations, and events or circumstances exist that raise substantial doubt about the going-concern assumption.」
Against a backdrop of continuing operating losses, declining cash and net assets, and repayments of borrowings, the Company continues to disclose significant events related to going concern. It aims to secure liquidity through ¥80 million in long-term borrowings and other financing and to turn operating cash flow positive. - FY2026-H1WorsenedAnnual report
「In addition, as costs such as raw materials and labor continued to rise, labor costs in particular placed a greater-than-planned burden on staffing arrangements and work-hour management in store operations, becoming a factor that squeezed profitability. The increase in expenses associated with the resumption of the shareholder benefit program was within the planned range and was not an unexpected burden. However, combined with the above cost increases, it has caused cash and deposits to trend downward compared with the end of the previous fiscal year. Accordingly, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern remain in place.」
The filing states that, in addition to higher labor costs, the burden of staffing arrangements and work-hour management exceeded the initial plan and squeezed profitability, while the combination of higher costs and expenses for resuming the shareholder benefit program caused cash and deposits to trend downward. - FY2025Higher sales and profits alongside failure to return to profitabilityAnnual report
「In the fiscal year ending June 2025, the Company proceeded with the renovation of 7 stores, including changes in business formats that were not included in the original plan. Although the closures during format changes and higher opening costs imposed additional burdens, the Company's results showed higher sales and profits on an ordinary profit basis. However, while business performance has improved through efforts to revitalize existing stores and change business formats, the Company has not returned to profitability, and events or conditions that raise substantial doubt about its ability to continue as a going concern remain in place.」
The filing states that ordinary profit and loss improved through changes in business formats and other measures, while the failure to return to profitability and the material event concerning the going concern assumption continue. - FY2025-H1RestatedAnnual report
「During the interim accounting period, customer traffic to the Company's food-service locations recovered, resulting in higher sales and profits year on year. However, costs including raw materials, labor, utilities and various other expenses increased. Efforts to improve the profitability of existing stores and improve store profitability through changes in business formats are steadily progressing, although some stores in certain regions continue to struggle. In addition, profit growth has not kept pace with the increase in sales, and the planned return to profitability has not been achieved. Accordingly, the situation involving events or conditions that raise substantial doubt about the Company's ability to continue as a going concern remains in place.」
The filing describes the recovery in customer traffic, higher sales and profits, and progress in improving existing stores and stores converted to different business formats. However, profit growth has not kept pace with the increase in sales, the planned return to profitability has not been achieved, and the material event concerning the going concern assumption continues. - FY2024-Q3RestatedAnnual report
「In addition, although the Company has recorded operating losses of varying amounts for 6 consecutive fiscal periods, it remained on the way to recovering its business performance during the cumulative third-quarter period, and events or conditions that raise substantial doubt about the Company's ability to continue as a going concern remain in place.」
The filing states that, while sales recovery is progressing, operating losses over 6 fiscal periods and the fact that business performance remains on the way to recovery mean that the material event concerning the going concern assumption continues. - FY2024-Q1Sales recovery alongside limited profit recoveryAnnual report
「Following the reclassification of COVID-19 under the Infectious Diseases Control Law from Category 2 to Category 5, the recovery in customer visits became pronounced and sales also began to recover. However, significant regional differences in sales recovery have begun to emerge, and profit recovery remains limited. In addition, although the Company has recorded operating losses of varying amounts for 6 consecutive fiscal periods, it remained on the way to recovery in the first quarter, and events or conditions that raise substantial doubt about the Company's ability to continue as a going concern remain in place.」
The filing states that, although the recovery in customer visits and sales became pronounced, regional differences and limited profit recovery remain, while operating losses over 6 fiscal periods and the material event concerning the going concern assumption continue. - FY2023RestatedAnnual report
「However, losses incurred during the downturn caused by the increase in infections have not been reduced, and events or conditions that raise substantial doubt about the Company's ability to continue as a going concern remain in place.」
The filing describes a recovery trend in customer visits and sales, while stating that losses arising from the previous downturn have not been reduced and that a material event concerning the going concern assumption remains. - FY2023-Q3RestatedAnnual report
「Losses incurred during the downturn caused by the increase in infections have not been reduced, and events or conditions that raise substantial doubt about the Company's ability to continue as a going concern remain in place.」
Although the recovery trend in customer visits and sales is recognized, losses from the downturn caused by the increase in infections have not been reduced, and the material event concerning the going concern assumption continues. - FY2023-Q2WorsenedAnnual report
「Although sales showed a recovery trend as the number of infections declined and customer visits gradually increased, losses incurred during the downturn caused by the increase in infections have not been reduced, and events or conditions that raise substantial doubt about the Company's ability to continue as a going concern remain in place.」
The filing recognizes the recovery trend in customer visits and sales, but states that losses resulting from the downturn caused by the increase in infections have not been reduced and that the material event concerning the going concern assumption continues. - FY2023-Q1RestatedAnnual report
「Because sales declined again following the sharp increase in new COVID-19 cases during the seventh wave, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern remain in place.」
The filing continues to describe the material event concerning the going concern assumption against the backdrop of sluggish sales. At the same time, the Company has determined that no material uncertainty is recognized as it proceeds with countermeasures based on its cash and deposits and net assets. - FY2022MitigatedAnnual report
「As of the end of the consolidated fiscal year under review, the Group had cash and deposits of ¥957.704 million and net assets of ¥1,170.487 million, maintaining a stable financial position. The Group has determined that no material uncertainty concerning its ability to continue as a going concern is recognized, as it proceeds with the above measures based on these resources.」
Although material events concerning the going concern assumption remain, the Company has determined that no material uncertainty is recognized, based on measures to stabilize cash management and improve profitability, together with its cash and deposits and net assets. - FY2022-Q3RestatedAnnual report
「In light of these circumstances, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern exist.」
The filing continues to describe the material event concerning the going concern assumption, against the backdrop of declining izakaya demand, the prolonged infectious disease, requests for closures and reduced hours, and lower sales. - FY2022-Q2RestatedAnnual report
「In light of these circumstances, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern exist.」
The filing continues to describe the material event concerning the going concern assumption, against the backdrop of declining izakaya demand, the prolonged infectious disease, and declines in customer visits and sales. - FY2022-Q1RestatedAnnual report
「In light of these circumstances, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern exist.」
The material event concerning the going concern assumption, against the backdrop of declining izakaya demand, the prolonged infectious disease, requests for closures and reduced hours, and lower sales, continues. - FY2021WorsenedAnnual report
「As a result, the Company has reported consolidated operating losses and negative consolidated operating cash flow in each fiscal year through the fiscal year under review. Because it is expected that improving these conditions will require a certain amount of time, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern exist.」
Consolidated operating losses and negative operating cash flow continued through the fiscal year under review, and the material event concerning the going concern assumption remains in place. - FY2021-Q3WorsenedAnnual report
「Accordingly, concerns have arisen that improving the consolidated operating loss and consolidated negative operating cash flow will require a certain amount of time, and events or conditions exist that raise substantial doubt about the appropriateness of the going concern assumption.」
Against the backdrop of expectations that requests for cooperation from the food-service industry would continue until a clear end to the infectious disease was confirmed, the material event concerning the going concern assumption continued. - FY2021-Q2WorsenedAnnual report
「In light of these circumstances, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern exist.」
The material event concerning the going concern assumption, against the backdrop of lower store visits and deteriorating business performance, continued in the current quarter. - FY2021-Q1WorsenedAnnual report
「In light of these circumstances, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern exist.」
Against the backdrop of lower sales resulting from COVID-19 and declining demand for full-service izakaya restaurants, the material event concerning the going concern assumption continued in the current quarter. The filing also states that no material uncertainty is recognized as the Company proceeds with countermeasures based on its cash and deposits and net assets. - FY2020WorsenedAnnual report
「During the fiscal year under review, the impact of the temporary closure of all stores, implemented in response to the Japanese government's declaration of a state of emergency and requests from local governments to refrain from going out amid the spread of COVID-19, was added to this situation. The Company recorded an operating loss of ¥326.643 million, an ordinary loss of ¥295.827 million, and a net loss attributable to owners of the parent of ¥628.051 million. Cash flow from operating activities was also negative in the previous consolidated fiscal year and remained negative at ¥542.812 million in the fiscal year under review.」
Operating and ordinary losses over multiple years, a net loss for the current period, and negative operating cash flow continued, while the loss and negative operating cash flow increased in the current period. - FY2020-Q3First statedAnnual report
「In addition, because the Company expects that the containment of the infectious disease and the recovery in demand for dining out will require a certain period of time, concerns have arisen that a considerable amount of time will be required to improve the consolidated operating loss and negative consolidated operating cash flow. Accordingly, events or conditions that raise substantial doubt about the Company's ability to continue as a going concern exist.」
The filing states that events or conditions raising substantial doubt about the Company's ability to continue as a going concern exist, against the backdrop of expectations that containing COVID-19 and recovering demand for dining out will take time. It also states that no material uncertainty is recognized, based on cash and deposits and net assets.