Investment recovery and goodwill impairment risk following capital alliances and M&A
First written in FY2023. 1 of 3 entries say "Restated". Latest entry: FY2027-H1.
The whole theme swung hardest in 2024: 40 of 91 companies on the "Worse" side.
- FY2027-H1MaterialisedAnnual report
「As a result, revenue from the vending machine retail operations business was ¥7,903 million, up 6.1% year on year, while segment profit was ¥164 million, down 21.5%. Although M&A increased revenue, integration costs were incurred ahead of the benefits, and the business was also affected by poor summer weather across eastern Japan, resulting in higher revenue but lower profit.」
Although M&A increased revenue, integration costs were incurred ahead of the benefits, resulting in a 21.5% year-on-year decline in segment profit in the vending machine retail operations business. Post-acquisition integration costs are having a tangible impact on results. - FY2024RestatedAnnual report
「The group intends to pursue capital alliances and M&A as medium- to long-term management strategies aimed at enhancing corporate value.」
While using capital alliances and M&A as means of achieving growth, the company continues to disclose the risk of impairment losses and goodwill impairment arising from the investee's financial condition, contingent liabilities, previously unrecognised liabilities, and divergence from the business plan. - FY2023First statedAnnual report
「The group intends to pursue capital alliances and M&A as medium- to long-term management strategies aimed at enhancing corporate value. However, capital alliances may result in the recognition of an impairment loss on equity investments if expected results are not achieved due to the investee's financial condition or other factors. In the case of M&A, if issues arise after an acquisition, such as contingent liabilities or previously unrecognised liabilities, or if actual results diverge significantly from the business plan, the company may recognise an impairment loss on goodwill. If any of these events occur, they may affect the group's results.」
While positioning capital alliances and M&A as means of achieving growth, the company has independently identified for the first time the possibility of equity investment impairment and goodwill impairment arising from the investee's financial condition, contingent or previously unrecognised liabilities, and divergence from the business plan as major risks.