Risk of post-M&A earnings shortfalls and goodwill impairment
First written in FY2018. 3 of 7 entries say "Materialised", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2026MaterialisedAnnual report
「Impairment losses of ¥812 million were recorded during the current consolidated fiscal year.」
Impairment losses, including goodwill impairment related to post-M&A earnings shortfalls and other factors, also occurred during the current fiscal year, with total impairment losses of ¥812 million recorded, including ¥618 million related to goodwill. - FY2026-H1MaterialisedAnnual report
「Interim net income attributable to owners of the parent was ¥1,793 million, down 21.4% year on year, due to goodwill impairment losses at overseas subsidiaries and the recording of losses on disposal of fixed assets associated with the construction and relocation of an office.」
Goodwill impairment losses at an overseas subsidiary actually occurred, and interim net income attributable to owners of the parent fell 21.4% year on year. - FY2024WorsenedAnnual report
「Although goodwill impairment losses at subsidiaries and costs related to provisions for business restructuring losses in the food supermarket business were recorded during the current fiscal year, the reversal of amounts previously charged to the provision for business restructuring losses in the food supermarket business improved extraordinary gains and losses. Net income attributable to owners of the parent reached a record high since the Company's founding.」
Goodwill impairment occurred at a subsidiary, and consolidated financial statements included impairment losses of ¥1,609 million, including ¥1,372 million related to Singapore goodwill. - FY2022MaterialisedAnnual report
「Goodwill 21」
A goodwill impairment loss of ¥21 million was recorded for Singapore, and the risk of post-M&A earnings shortfalls and goodwill impairment was disclosed as an actual loss. - FY2020RestatedAnnual report
「For M&A transactions, we conduct thorough reviews to ensure that stable earnings-generating capacity can be secured over the long term before proceeding. However, if earnings cannot be secured as planned in the future, it may become necessary to record impairment losses on goodwill and take other measures, which could affect our Group's results.」
The risk of goodwill impairment if earnings cannot be secured as planned after an M&A transaction continued to be disclosed. - FY2019RestatedAnnual report
「For M&A transactions, we conduct thorough reviews to ensure that stable earnings-generating capacity can be secured over the long term before making acquisitions. However, if earnings cannot be secured as planned in the future, it may become necessary to record impairment losses on goodwill and take other measures, which could affect our Group's results.」
As M&A continues, the risk of post-acquisition earnings shortfalls and goodwill impairment was reaffirmed. - FY2018First statedAnnual report
「For M&A transactions, we conduct thorough reviews to ensure that stable earnings-generating capacity can be secured over the long term before making acquisitions. However, if earnings cannot be secured as planned in the future, it may become necessary to record impairment losses on goodwill and take other measures, which could affect our Group's results.」
The risk of goodwill impairment if earnings cannot be secured as planned after an acquisition was explicitly identified in connection with active M&A.