Notice Regarding the Recognition of an Impairment Loss, Variances between Earnings Forecasts and Actual Results, Variances between Current and Previous Fiscal Year's Non-Consolidated Results, and the Current Fiscal Year's Dividend (No Dividend)
KAPPA・CREATE CO.,LTD. (a consolidated subsidiary of COLOWIDE CO.,LTD.)
85 domestic stores, 2 overseas stores and 1 domestic factory
The impact on performance of higher prices for raw materials, energy and other items, consumers’ preference for thrift amid rising prices, the failure of initiatives addressing consumers’ increasingly discerning preferences and diverse values to achieve the expected level of effectiveness, and higher labor costs. The impairment loss was recognized as a result of carefully reviewing future profitability.
Impairment loss of ¥715 million (impairment loss)
The fourth quarter of the fiscal year ending March 2026
Differences arose between the full-year consolidated earnings forecast and actual results. Net sales were ¥73,193 million versus the forecast of ¥80,118 million, and net income attributable to owners of the parent was negative ¥394 million versus the forecast of ¥1,444 million. The impact of the revision to KAPPA・CREATE CO.,LTD.’s earnings forecast on the performance of COLOWIDE CO.,LTD. is reflected in the earnings summary for the fiscal year ending March 2026 disclosed on the same day.
The year-end dividend for the fiscal year ending March 2026 will be omitted, and the company will work to resume dividend payments.
| Item | Details |
|---|---|
| Event name | Notice Regarding the Recognition of an Impairment Loss, Variances between Earnings Forecasts and Actual Results, Variances between Current and Previous Fiscal Year's Non-Consolidated Results, and the Current Fiscal Year's Dividend (No Dividend) |
| Date of occurrence | The fourth quarter of the fiscal year ending March 2026 |
| Subject Entity | KAPPA・CREATE CO.,LTD. (a consolidated subsidiary of COLOWIDE CO.,LTD.) |
| Target Locations / Products | 85 domestic stores, 2 overseas stores and 1 domestic factory |
| Cause | The impact on performance of higher prices for raw materials, energy and other items, consumers’ preference for thrift amid rising prices, the failure of initiatives addressing consumers’ increasingly discerning preferences and diverse values to achieve the expected level of effectiveness, and higher labor costs. The impairment loss was recognized as a result of carefully reviewing future profitability. |
| Amount of Impact on Business Performance | Impairment loss of ¥715 million (impairment loss) |
| Accounting period in which recognized | The fourth quarter of the fiscal year ending March 2026 |
| Impact on Earnings Forecast | Differences arose between the full-year consolidated earnings forecast and actual results. Net sales were ¥73,193 million versus the forecast of ¥80,118 million, and net income attributable to owners of the parent was negative ¥394 million versus the forecast of ¥1,444 million. The impact of the revision to KAPPA・CREATE CO.,LTD.’s earnings forecast on the performance of COLOWIDE CO.,LTD. is reflected in the earnings summary for the fiscal year ending March 2026 disclosed on the same day. |
| Outlook | The year-end dividend for the fiscal year ending March 2026 will be omitted, and the company will work to resume dividend payments. |
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 increase in raw material, energy and labor costs, consumers’ preference for thrift amid rising prices, and the failure of products, services and various initiatives to achieve the expected level of effectiveness. The impairment loss was recognized after carefully reviewing future profitability in light of these effects on performance.