TOKYO, Apr 28 (Pulse News Wire) – SMS CO.,LTD. (2175.T) reported lower-than-estimated consolidated results for the fiscal year ending March 31, 2026, due to challenges in its overseas operations.
The company recorded impairment losses totaling ¥22.96 billion, primarily attributed to trademark rights (¥13.04 billion), goodwill (¥8.649 billion), software (677 million yen), and customer-related assets (¥589 million). Additionally, individual financial statements reflected related company stock valuation losses of ¥29.67 billion. The impairment charges led to a significant reduction in operating expenses, with annual amortization costs expected to decrease by approximately ¥1.500 billion starting from the fiscal year ending March 2027.
Despite these adjustments, revenue and profit margins fell short of initial forecasts, contributing to a decline in net income per share from ¥82.4 million to --¥173.7 million compared to previous estimates. In light of these developments, SMS CO.,LTD. remains committed to restructuring its overseas businesses and exploring strategic partnerships and external capital investments to enhance future growth prospects.
The company’s revised outlook underscores ongoing efforts to adapt to evolving market conditions while maintaining its mission to improve quality of life through advanced healthcare solutions.
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