3-D Matrix revises earnings forecast due to valuation losses

3-D Matrix announced a downward revision of its earnings forecast for the fiscal year ending April 30, 2025. The company now anticipates a net loss attributable to shareholders of JPY 2,501 million, a substantial drop from the previously projected loss of JPY 1,431 million. This revision is primarily due to the recognition of valuation losses on both product inventory (approximately JPY 350 million) and raw materials (approximately JPY 218 million), alongside increased foreign exchange losses resulting from a stronger JPY. The inventory write-down pertains to cardiovascular and ENT products, while the raw material loss is related to peptide powder sourced from a secondary supplier. While the company characterizes these as one-time factors and does not expect a similar impact in the coming fiscal year, the revision reflects a substantial change in the company's near-term financial outlook. The company also recorded FX losses of JPY 1,128 million.