Acquisition-related expenses for Lein Hing Holdings weigh on ambient-temperature distribution business profit
First written in FY2018-Q2. 11 of 17 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2023-Q3.
The whole theme swung hardest in 2019: 2 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2023-Q3MitigatedAnnual report
「As a result, operating revenue was ¥55.858 billion, up 28.5% year on year, reflecting the recovery in economic activity and markets from the COVID-19 pandemic and the impact of foreign exchange movements. Operating profit was ¥290 million, compared with an operating loss of ¥99 million in the same quarter of the previous year, partly due to the reduced burden of goodwill amortization.」
In the overseas business, operating income improved from an operating loss of ¥99 million in the same quarter of the previous year to operating profit of ¥290 million, driven by the reduced burden of goodwill amortization and the recovery in economic activity and markets. - FY2023-Q2MitigatedAnnual report
「Operating revenue was ¥36.685 billion, up 32.3% year on year, reflecting the recovery in economic activity and markets from the COVID-19 pandemic and the impact of foreign exchange movements. Despite the burden of goodwill amortization, operating profit was ¥205 million, compared with an operating loss of ¥193 million in the same quarter of the previous year.」
In the overseas business, although the burden of goodwill amortization remained, operating income improved from an operating loss of ¥193 million in the same quarter of the previous year to operating profit of ¥205 million. - FY2023-Q1MitigatedAnnual report
「Operating revenue was ¥18.819 billion, up 41.9% year on year, reflecting the recovery in economic activity and markets from the COVID-19 pandemic and the impact of foreign exchange movements. Operating profit was ¥107 million, compared with an operating loss of ¥122 million in the same quarter of the previous year, despite the burden of goodwill amortization.」
In the overseas business, although the burden of goodwill amortization remained, operating income improved from a loss of ¥122 million in the same quarter of the previous year to profit of ¥107 million. - FY2022MitigatedAnnual report
「Operating revenue was ¥59.573 billion, partly reflecting the contribution from the consolidation of Merison (M) Sdn.Bhd., whose shares were acquired in October 2020, and Song Ma Retail Co., Ltd., whose shares were acquired in July 2021. Although markets had recently been returning to normal, the impact of lockdowns caused by the spread of COVID-19 remained significant, and the burden of goodwill amortization resulted in operating profit of ¥38 million.」
Although the burden of goodwill amortization remained, the overseas business recovered from an operating loss of ¥99 million in the previous year to operating profit of ¥38 million. - FY2022-Q3WorsenedAnnual report
「As a result, operating revenue was ¥43.463 billion, partly reflecting the consolidation of Merison (M) Sdn.Bhd., whose shares were acquired in October 2020, and Song Ma Retail Co., Ltd., whose shares were acquired in July 2021. However, the impact of market lockdowns caused by COVID-19 was significant, and the burden of goodwill amortization also resulted in an operating loss of ¥99 million.」
In the overseas business, an operating loss of ¥99 million was recorded as the impact of market lockdowns was compounded by the continuing burden of goodwill amortization. - FY2021MitigatedAnnual report
「Revenue was ¥48.594 billion, up 24.9% year on year, due to the consolidation of Merison (M) Sdn.Bhd., whose shares were acquired in October 2020. Although inbound demand declined substantially due to COVID-19, operating profit was ¥162 million, up 6.8% year on year, partly because the burden of goodwill amortization decreased.」
The effects of COVID-19 remained after the acquisition of Merison, but operating profit in the overseas business increased 6.8% year on year as the burden of goodwill amortization decreased. - FY2021-Q3MitigatedAnnual report
「Despite a reduction in the burden of goodwill amortization, operating profit was ¥138 million, down 4.8% year on year, due partly to a substantial decline in inbound demand caused by COVID-19.」
The burden of goodwill amortization decreased, partially easing the acquisition-related factors weighing on profit. Meanwhile, the decline in inbound demand caused by COVID-19 became a new factor reducing profit. - FY2021-Q2MitigatedAnnual report
「Revenue was ¥22.031 billion, up 12.9% year on year, due to the consolidation of Merison (M) Sdn.Bhd., whose shares were acquired in October 2020. Operating profit was ¥101 million, up 15.1% year on year, partly due to a reduction in the burden of goodwill amortization.」
In the overseas business, the burden of goodwill amortization decreased and operating profit increased 15.1% year on year. The factors weighing on profit after the acquisition eased in terms of operating performance. - FY2021-Q1MitigatedAnnual report
「As a result, revenue was ¥9.617 billion, up 3.8% year on year, as existing handled brands performed steadily. Operating profit was ¥24 million, up 240.0% year on year, partly due to a reduction in the burden of goodwill amortization.」
In the overseas business, the burden of goodwill amortization decreased, and operating profit increased 240.0% year on year. - FY2020-Q3MitigatedAnnual report
「As a result, revenue was ¥29.213 billion, down 6.3% year on year, due to a review of unprofitable transactions among the previously handled brands, changes in the transaction structure for some brands, and some restrictions on business activities caused by COVID-19. Operating profit was ¥145 million, compared with an operating loss of ¥40 million in the same quarter of the previous year, partly due to the impact of goodwill amortization.」
Although the burden of goodwill amortization remained, operating income in the overseas business improved from an operating loss of ¥40 million in the previous year to operating profit of ¥145 million. - FY2020-Q2MitigatedAnnual report
「As a result, revenue was ¥19.508 billion, down 5.5% year on year, due to a review of unprofitable transactions among the previously handled brands and changes in the transaction structure for some brands. Operating profit was ¥87 million, compared with an operating loss of ¥106 million in the same quarter of the previous year, partly due to the impact of goodwill amortization.」
Although the burden of goodwill amortization continued, operating income in the overseas business improved from an operating loss of ¥106 million in the previous year to operating profit of ¥87 million. - FY2020-Q1MitigatedAnnual report
「As a result, revenue was ¥9.262 billion, down 13.4% year on year, due to a review of unprofitable transactions among the previously handled brands and changes in the transaction structure for some brands. Operating profit was ¥7 million, compared with an operating loss of ¥30 million in the same quarter of the previous year, partly due to the impact of goodwill amortization.」
Although goodwill amortization continued, operating income in the overseas business improved from an operating loss of ¥30 million in the same quarter of the previous year to operating profit of ¥7 million. - FY2019-Q3RestatedAnnual report
「As a result, revenue was ¥31.193 billion, up 166.4% year on year, due to the acquisition of shares in a Malaysian wholesaler in January 2018 and its inclusion as a consolidated subsidiary. However, the company posted an operating loss of ¥40 million, compared with an operating loss of ¥432 million in the same quarter of the previous year, due to the amortization of goodwill.」
The company continues to explain that the overseas business expanded its revenue base after the acquisition of the Malaysian company, while goodwill amortization resulted in a continuing operating loss. - FY2019-Q2RestatedAnnual report
「As a result, revenue was ¥20.650 billion, compared with ¥1.850 billion in the same quarter of the previous year, due to the acquisition of shares in a Malaysian wholesaler in January 2018 and its inclusion as a consolidated subsidiary. However, the company posted an operating loss of ¥106 million, compared with an operating loss of ¥334 million in the same quarter of the previous year, due to the amortization of goodwill.」
The company continues to explain that the overseas business expanded its revenue base after the acquisition of the Malaysian company, while goodwill amortization resulted in an operating loss. - FY2019-Q1ReframedAnnual report
「As a result, net sales amounted to ¥10,690 million (¥931 million in the same quarter of the previous year) following the acquisition of shares in a Malaysian wholesaler in January 2018, which made it a consolidated subsidiary, while an operating loss of ¥30 million (operating loss of ¥106 million in the same quarter of the previous year) was recorded due to the amortization of goodwill.」
The explanation of the factors weighing on profit after the acquisition of Lein Hing Holdings has shifted from acquisition-related costs and other expenses to an operating loss caused by goodwill amortization in the overseas business. - FY2018-Q3RestatedAnnual report
「As a result, revenue was ¥535.780 billion, up 2.8% year on year, while operating profit was ¥5.747 billion, down 1.7% year on year, due to expenses and other costs related to the acquisition of shares in Lein Hing Holdings Sdn. Bhd.」
The company continues to explain that acquisition-related costs for Lein Hing Holdings and other expenses reduced operating profit in the ambient-temperature distribution business. Revenue increased, while operating profit decreased 1.7% year on year. - FY2018-Q2First statedAnnual report
「As a result, net sales were ¥351,025 million, up 1.2% year on year, but operating profit was ¥4,118 million, down 1.1% year on year, due to expenses and other costs related to the acquisition of shares in Lein Hing Holdings Sdn. Bhd.」
The impact of the acquisition on post-acquisition performance was quantified for the first time, with acquisition-related costs for Lein Hing Holdings and other expenses cited as having reduced operating profit in the ambient-temperature distribution business. Advisory fees and other acquisition-related expenses totaling ¥114 million were also disclosed.