Impairment and loan recovery risks due to declining profitability in the agricultural business
First written in FY2021. 3 of 10 entries say "Mitigated", first in FY2023. Latest entry: FY2026-H1.
0 other companies' latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「Profit increased due to the impact of higher sales arising from the factors described above, as well as higher selling prices for fertiliser. As a result, revenue was ¥9,263 million, up 7.9% year on year, and segment profit was ¥638 million, up 85.7% year on year.」
Although the agricultural business continued to be affected by lower selling prices, profit increased due to factors including higher selling prices for fertiliser, easing the pressure from declining profitability in terms of performance for the current interim period. - FY2025-H1MitigatedAnnual report
「In terms of earnings, profit increased due to factors including higher selling prices for crops. Nitto FC Co., Ltd., which became a newly consolidated subsidiary in the previous consolidated fiscal year, also contributed to the increase in profit. As a result, sales were ¥8,587 million (segment sales of ¥148 million in the same period of the previous year), and segment profit was ¥343 million (compared with a segment loss of ¥76 million in the same period of the previous year).」
The agricultural business turned from a segment loss in the previous year to a profit. Although impairment losses were recorded in prior years, profitability improved in the current interim period. - FY2024WorsenedAnnual report
「For farms where the profit or loss arising from operating activities had remained negative, the carrying amount was reduced to the recoverable amount, and the resulting reduction was recognised as an impairment loss of ¥278 million under extraordinary losses.」
In the agricultural business, farm-level profit or loss remained negative at both Hidaka Farm and Nangoku Farm, resulting in an actual impairment loss totalling ¥278 million. - FY2024-Q3WorsenedAnnual report
「In terms of profit and loss, sales of agricultural products increased, but losses widened year on year due to factors including market prices for crops produced at Nangoku Farm, which was newly opened in the previous fiscal year, remaining below expectations.」
Prices for crops from Nangoku Farm remained below expectations, causing losses in the agricultural business to widen year on year. - FY2024-Q1WorsenedAnnual report
「In agriculture, sales increased, but losses widened year on year due to factors including market prices for crops produced at Nangoku Farm, which was newly opened in the previous fiscal year, remaining below expectations. As a result, revenue was ¥601 million, up 22.6% year on year, and the segment loss was ¥38 million, compared with a segment loss of ¥26 million in the previous year.」
After Nangoku Farm opened, market prices for its crops remained below expectations, causing losses for the Other businesses, including agriculture, to widen year on year. - FY2023MitigatedAnnual report
「In terms of earnings, in agriculture, expenses including the costs of opening Nangoku Farm, newly established in Nangoku, Kochi Prefecture, increased, but the loss narrowed compared with the previous fiscal year because of factors including higher sales prices at existing farms.」
Although costs associated with opening the new farm continued, the loss for the Other businesses, including agriculture, narrowed year on year due to factors including higher selling prices at existing farms. No impairment loss was recognised for the agricultural business in the current fiscal year. - FY2023-Q3New-farm costs continued, but the loss narrowedAnnual report
「Although expenses, including the costs of opening Nangoku Farm, newly established in Nangoku, Kochi Prefecture, increased, the loss narrowed year on year due to factors including higher selling prices at existing farms.」
While the burden of costs associated with opening the new farm continued, the loss narrowed due to factors including higher selling prices at existing farms. - FY2023-Q2Wider losses due to the cost of opening a new farmAnnual report
「In terms of profit and loss, the agricultural business recorded wider losses year on year because expenses, including the costs of opening Nangoku Farm, which was newly established in Nangoku, Kochi Prefecture, increased. Meanwhile, 新光硝子工業株式会社 and 新生ガラス株式会社, which became newly consolidated subsidiaries in the previous consolidated fiscal year, contributed to the increase in profit.」
Although costs associated with opening the new farm widened losses in the agricultural business, profit contributions from 新光硝子工業 and 新生ガラス narrowed the losses for the Other segment overall from the previous year. - FY2022MaterialisedAnnual report
「During the current consolidated fiscal year, we recognized an impairment loss on tangible fixed assets in the agricultural business because profitability declined as operating losses continued and the business deviated from the original business plan.」
The agricultural business incurred an actual impairment loss of ¥209 million, going beyond merely showing indications of impairment due to declining profitability. - FY2021First statedAnnual report
「For the asset group related to the agricultural business in the current consolidated fiscal year, we determined that there were indications of impairment because profitability had declined as operating losses continued and the business deviated from the original business plan. However, because the total undiscounted future cash flows of the asset group exceeded its carrying amount, no impairment loss was recognised.」
The agricultural business showed indications of impairment because operating losses continued and the business deviated from its business plan. Although no impairment loss was recognised, the recoverability and valuation of ¥416 million in property, plant and equipment and ¥609 million in long-term loans to affiliates were disclosed as significant future estimation risks.