Recognition of an extraordinary loss and deferred income tax expense, and the difference between the full-year earnings forecast and actual results
ATOM CORPORATION (a consolidated subsidiary of COLOWIDE CO.,LTD.)
53 restaurants in the restaurant business (store names not disclosed)
The company reviewed the future recoverability of fixed assets whose recoverability was considered to carry future risk, and reviewed the recoverability of deferred tax assets based on results for the fiscal year ending March 2026 and the outlook ahead. The differences from the earnings forecast were attributable to holding fairs, revising menu offerings to reflect regional characteristics, initiatives to increase awareness following television coverage, and lower selling, general and administrative expenses through measures including the optimization of personnel costs.
Impairment loss of ¥671 million (cumulative amount: ¥677 million; extraordinary loss) and deferred income tax expense of ¥577 million (cumulative amount: ¥608 million). The differences from the previous forecast were an increase of ¥317 million in net sales, an increase of ¥392 million in operating income, an increase of ¥406 million in ordinary income, and a decrease of ¥297 million in net income.
Fourth-quarter accounting period of the fiscal year ending March 2026 (1 April 2025 to 31 March 2026)
Differences arose between the full-year earnings forecast and actual results for the fiscal year ending March 2026. The impact of the revision to ATOM CORPORATION’s earnings forecast on COLOWIDE CO.,LTD.’s results is reflected in the financial results briefing for the fiscal year ending March 2026.
The company plans to further strengthen efforts to improve results by concentrating management resources in the restaurant business and pursue a recovery in performance, with a view to fundamentally improving profitability from the fiscal year ending March 2027 onward.
| Item | Details |
|---|---|
| Event name | Recognition of an extraordinary loss and deferred income tax expense, and the difference between the full-year earnings forecast and actual results |
| Date of occurrence | 31 March 2026 (recognized at the end of the current fiscal year) |
| Subject Entity | ATOM CORPORATION (a consolidated subsidiary of COLOWIDE CO.,LTD.) |
| Target Locations / Products | 53 restaurants in the restaurant business (store names not disclosed) |
| Cause | The company reviewed the future recoverability of fixed assets whose recoverability was considered to carry future risk, and reviewed the recoverability of deferred tax assets based on results for the fiscal year ending March 2026 and the outlook ahead. The differences from the earnings forecast were attributable to holding fairs, revising menu offerings to reflect regional characteristics, initiatives to increase awareness following television coverage, and lower selling, general and administrative expenses through measures including the optimization of personnel costs. |
| Amount of Impact on Business Performance | Impairment loss of ¥671 million (cumulative amount: ¥677 million; extraordinary loss) and deferred income tax expense of ¥577 million (cumulative amount: ¥608 million). The differences from the previous forecast were an increase of ¥317 million in net sales, an increase of ¥392 million in operating income, an increase of ¥406 million in ordinary income, and a decrease of ¥297 million in net income. |
| Accounting period in which recognized | Fourth-quarter accounting period of the fiscal year ending March 2026 (1 April 2025 to 31 March 2026) |
| Impact on Earnings Forecast | Differences arose between the full-year earnings forecast and actual results for the fiscal year ending March 2026. The impact of the revision to ATOM CORPORATION’s earnings forecast on COLOWIDE CO.,LTD.’s results is reflected in the financial results briefing for the fiscal year ending March 2026. |
| Outlook | The company plans to further strengthen efforts to improve results by concentrating management resources in the restaurant business and pursue a recovery in performance, with a view to fundamentally improving profitability from the fiscal year ending March 2027 onward. |
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 impairment loss was recognized after reviewing the future recoverability of fixed assets whose recoverability was considered to carry future risk, as the company concentrates management resources to improve profitability from the fiscal year ending March 2027 onward. The deferred income tax expense resulted from the partial write-down of deferred tax assets following a review of their recoverability based on results for the fiscal year ending March 2026 and the outlook ahead. The upside in net sales was attributable to holding fairs, revising menu offerings to reflect regional characteristics, and initiatives to increase awareness that enhanced customers’ motivation to visit and generated interest following television coverage. The upside in operating income and ordinary income resulted from higher net sales and lower selling, general and administrative expenses, including through the optimization of personnel costs.