Low margins on SDG products and the burden of goodwill amortization
First written in FY2016-Q3. 4 of 7 entries say "Materialised", first in FY2018. Latest entry: FY2026-H1.
No other company in this theme has enough history to compare yet.
- FY2026-H1MitigatedAnnual report
「We will review the terms of transactions with 80 OEM customers and focus on customers with whom we can strengthen growth and profitability through co-creation. … We aim to secure profitability by expanding non-OEM products and standardize production and supply chain management.」
In response to MMG's low margins and impairment risk, the company cites reviewing OEM transaction terms, focusing on more profitable customers, expanding non-OEM products and standardizing production and supply chain management. - FY2025MaterialisedAnnual report
「Recognized a ¥1,190 million impairment loss on MMG's property, plant and equipment as an extraordinary loss.」
The decline in profitability at the German site was recognized in the accounts as a ¥1,190 million impairment loss on MMG's buildings, land and other assets. - FY2019-Q3MaterialisedAnnual report
「Sales of dental-related products declined following the transfer of the shares of Schütz Dental GmbH, resulting in an overall decrease in revenue.」
The decline in sales following the transfer of the shares of Schütz Dental GmbH is reflected in lower revenue from dental-related products and lower overall revenue in the nine-month period ended [date]. - FY2019-Q2MaterialisedAnnual report
「Meanwhile, sales of dental-related products declined following the transfer of the shares of Schütz Dental GmbH, resulting in an overall decrease in revenue.」
The transfer of the shares of Schütz Dental GmbH and the resulting disposal of the low-margin business are reflected in the decline in dental-related product sales and overall revenue. - FY2018MaterialisedAnnual report
「Schütz Dental GmbH operates a dental equipment sales business centered on digital workflow systems. Because its profit margins were relatively low, we determined that concentrating management resources would contribute more to enhancing corporate value than continuing the business within our group, and transferred the shares.／Because the earnings initially anticipated could no longer be expected, we reduced the carrying amount to the recoverable amount and recognized the reduction as an impairment loss.」
Concerns about SDG's low margins and earnings power resulted in actual accounting and business measures, namely the transfer of the shares of Schütz Dental GmbH and recognition of a ¥287 million impairment loss on GDF goodwill. - FY2016RestatedAnnual report
「Because the profit margins of the acquired SDG products remain below those of our existing products and improvements are still under way, and due in part to the impact of goodwill amortization associated with the acquisition of SDG, segment profit (operating profit) was limited to ¥1,329 million, up 25.5% year on year.」
The company continues to explain that the low margins of SDG products remain under improvement and that goodwill amortization is also a factor weighing on profit. - FY2016-Q3First statedAnnual report
「Because the profit margins of the acquired SDG products remain below those of our existing products and improvements are still under way, and due in part to the impact of goodwill amortization associated with the acquisition of SDG, segment profit (operating profit) was limited to ¥1,053 million, up 19.7% year on year.」
The company cites the lower profit margins of SDG products than existing products and the ongoing improvement process, together with the impact of goodwill amortization, as factors explaining segment profit.