Source disclosure: February 16, 2026
DyDo GROUP HOLDINGS,INC. [2590.T]
TOKYO, Feb 16 (Kyodo) -- DyDo Group Holdings Inc., listed on the Tokyo Stock Exchange Prime Market under code number 2590, announced today that it expects to record impairment losses totaling ¥29.826 billion for its fiscal year ending January 2026. The company also revised its full-year earnings forecast based on recent performance trends.
The impairment loss is primarily attributed to declining profitability within the domestic beverage business due to rising raw material costs and an increased consumer preference for cost-saving measures. Despite efforts to improve profitability through price competitive "Heart Price" product lines and strategic removal of unprofitable vending machines, the company anticipates operating losses this fiscal period. Looking ahead, continued challenging market conditions have prompted the need to write down the book value of related assets such as vending machines to their recoverable amount during the fourth quarter of the current fiscal year.
In addition to the impairment charges, the company will recognize a valuation loss of ¥466 million on its equity investment in Daido Drinco Co., Ltd., a key subsidiary in the domestic beverage sector. Furthermore, provisions against doubtful debts amounting to ¥26.169 billion will be recorded for loans extended by the parent company to the same subsidiary, reflecting concerns over loan recovery. These individual impairments, however, do not affect consolidated results as they offset each other within the group's financial statements.
Regarding the revision of the full-year consolidated earnings forecast for the fiscal year ending January 2026, DyDo Group now projects a net loss attributable to shareholders of ¥970 per share compared to the previous estimate of ¥94.84 per share. While sales revenue is expected to decrease slightly from ¥243.4 billion to ¥241.2 billion, the company forecasts higher operating income at ¥4.1 billion, up from the earlier projection of ¥1.8 billion. However, ordinary income is anticipated to fall significantly to a loss of ¥30.7 billion from the prior expectation of a loss of ¥3 billion. This downward adjustment reflects the impact of the impairment losses and ongoing challenges in managing costs amidst volatile economic conditions.
AI-translated content. 🟡 Confidence: Standard See terms • Original filing