Yrglm raises earnings forecast, but impairment charges lead to net loss

Yrglm Group has revised its consolidated full-year earnings forecast for the period ending September 2025. The company now expects net sales of JPY4,930 million, up from JPY4,800 million previously. Operating profit is projected to increase to JPY270 million (from JPY200 million), and ordinary profit to JPY270 million (from JPY190 million). These upward revisions are primarily driven by stronger-than-expected performance in the e-commerce support business, particularly from its subsidiary, Ruby Group.

Despite the improved operational outlook, the company now forecasts a net loss attributable to parent company shareholders of JPY(140) million, a significant decrease from the previously projected net profit of JPY100 million. This revision is due to an anticipated extraordinary loss of JPY337 million from impairment charges related to goodwill and fixed assets of two acquired subsidiaries: Ruby Group (JPY238 million) and Topica (JPY98 million).

Despite the projected net loss, the company plans to maintain its year-end dividend forecast of JPY7.9 per share, prioritizing a stable and continuous dividend policy for shareholders. Yrglm attributes the extraordinary loss to a re-evaluation of future cash flows for both subsidiaries, leading to more conservative business plans.