Eidai Co., Ltd. Swings to Net Loss — JPY 5.0bn Impairment at Joint Venture Drags Results
Eidai Co., Ltd. (TSE:78220) has revised its FY2026 (ending March 2026) earnings forecast, cutting operating profit and swinging to a net loss of JPY 3.0bn after a JPY 5.0bn impairment charge at its wood-based panel joint venture EN Board Co., Ltd.
| Item | Before | After | Change |
|---|---|---|---|
| Revenue | JPY 74.5bn | JPY 73.5bn | -JPY 1.0bn (-1.3%) |
| Operating Profit | JPY 0.80bn | JPY 0.60bn | -JPY 0.20bn (-25.0%) |
| Ordinary Income | JPY 0.60bn | JPY 0.40bn | -JPY 0.20bn (-33.3%) |
| Net Profit | JPY 0.50bn | -JPY 3.00bn | -JPY 3.50bn (swing to loss) |
| EPS | JPY 11.31 | -JPY 67.88 | — |
| Annual Dividend | JPY 10.00 per share | JPY 10.00 per share | — |
EN Board Co., Ltd. — a joint venture with Nippon Novopan Kogyo — has posted losses for three consecutive fiscal years since commencing operations in November 2022. The impairment write-down of JPY 5.0bn in fixed assets reflects the ongoing gap between the business plan and actual results, driven by startup difficulties, raw material cost increases, and the impact of the COVID-19 pandemic on its launch timeline.
Additionally, the company disclosed that it expects to breach a financial covenant tied to EN Board’s net assets. It has approached its lenders to continue the loan agreement without invoking the acceleration clause. Dividend remains at JPY 10.00 per share annually.
Source: Original filing (TDnet) | 日本語版
This article is for informational purposes only and does not constitute investment advice. Always verify against the original filing.