TOKYO, May 14 (Pulse News Wire) – MUSCAT GROUP Inc. (195A.T) reported its fiscal year 2026 third quarter earnings, showing a lower net profit attributable to parent shareholders of -¥368 million compared to a loss of ¥112 million in the same period last year.
The company also recorded a significant extraordinary expense related to deferred tax asset unwinding amounting to ¥205 million due to restructuring efforts associated with transitioning to a holding company system. The operating loss for the quarter was -¥480 million higher than the previous year's figure, resulting in a total operating loss of ¥451 million. This increase was attributed to higher sales and general administrative expenses driven by costs associated with establishing a holding company structure, M&A activities, and accelerating brand growth initiatives. Additionally, revenue fell below expectations due to reduced client orders and rising raw material and logistics costs, compounded by unfavorable exchange rate movements.
Furthermore, the company recognized special gains from the sale of shares in subsidiaries NADESIKO Co., Ltd. and Rice Curry LS Co., Ltd., totaling ¥710 million. However, it also incurred special losses, including goodwill impairment and exit costs related to the former RiLi Casting and Apparel businesses within WinC Corp., amounting to ¥304 million and ¥26 million respectively, along with rebranding expenses of ¥30 million. These factors contributed to a lower net profit of ¥368 million, down from __NUM_1__ million yen in the prior year.
The impact of these adjustments and restructuring measures is reflected in the company’s recently released quarterly report.
🟢 Confidence: High AI-translated content.