Profit pressured by costs running ahead at Indian manufacturing subsidiary
First written in FY2018-Q2. 2 of 5 entries say "Restated". Latest entry: FY2021.
Yonex moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 4 of 9 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2021WorsenedAnnual report
「Because the performance of the business assets of the consolidated subsidiary in India, YONEX INDIA PRIVATE LIMITED, has fallen below the business plan originally assumed due to changes in the business environment, their carrying amount was reduced to the recoverable amount, and the reduction was recorded as an impairment loss under extraordinary losses.」
The Indian subsidiary continued to fall short of its business plan, resulting in an impairment loss of ¥3.024 million on business assets. On a non-consolidated basis, an impairment loss of ¥106.183 million was also recorded on shares of an affiliated company. - FY2019MaterialisedAnnual report
「Because the performance of the business assets of the consolidated subsidiary YONEX INDIA PRIVATE LIMITED has fallen below the business plan originally assumed due to changes in the business environment, their carrying amount was reduced to the recoverable amount, and the reduction was recorded as an impairment loss under extraordinary losses.」
Front-loaded costs at the Indian manufacturing subsidiary actually depressed profit, resulting in a shortfall against the business plan and an impairment loss of ¥144.549 million. - FY2018RestatedAnnual report
「Production at the Indian manufacturing subsidiary began in April of that year, and initiatives to strengthen the production system and create demand were implemented. However, front-loaded costs became a factor weighing on profit.」
Profit continued to be depressed by front-loaded costs at the Indian manufacturing subsidiary on a full-year basis as well. - FY2018-Q3RestatedAnnual report
「Production also began at the Indian manufacturing subsidiary in April of that year, and initiatives to strengthen the production system and create demand were implemented. However, front-loaded costs became a factor weighing on profit.」
Profit continues to be depressed by front-loaded costs at the Indian manufacturing subsidiary. - FY2018-Q2First statedAnnual report
「Production also began at the Indian manufacturing subsidiary in April of that year, but this became a factor weighing on profit because costs preceded the recovery in earnings.」
The company specifically describes for the first time how front-loaded costs associated with starting local production in India have depressed profit.