TOKYO, May 21 (Pulse News Wire) – Nichiryoku CO.,LTD. (7578.T) reported lower-than-expected results for its fiscal year ending March 2026 due to special losses and adjustments in estimates related to cemetery operations.
The company recorded a special loss of ¥368.1 million and recognized provisions totaling ¥217.9 million as part of extraordinary expenses, leading to a deviation from previously published forecasts. In the quarter, Nichiroku noted a decline in sales performance within its cemetery business, falling below initial expectations. As a result, the company conducted a thorough assessment of recoverability for certain assets used in the business, resulting in impairment losses.
This adjustment significantly impacted the firm's operating profit, ordinary profit, and net profit, causing them to fall short of the previous projections. Nichiroku’s revised figures compared to the prior forecast show significant discrepancies: | Item | Previous Forecast (A) | Current Actual (B) | Difference (B-A) | |--------------------|-----------------------|--------------------|------------------| | Revenue | ¥2.500 billion| ¥1.709 billion| --¥790 million | | Operating Profit | ¥210 million| --¥485 million| --¥695 million | | Ordinary Profit | ¥120 million| --¥764 million| --¥884 million | | Net Profit | ¥990 million| --¥207 million| --¥1.197 billion | The primary reasons behind the shortfall included reduced sales volumes and lower profitability across existing and newly launched initiatives. Despite efforts to improve advertising efficiency, visitor numbers declined, impacting overall sales targets.
Additionally, delays in staffing plans for new strategies contributed further to the revenue gap.
🟢 Confidence: High AI-translated content.