North American operations' low 1.3% margin plus 5.7B yen goodwill amortization and 6.9B yen impairment loss are weighing on profits.
Pan Pacific International Holdings' financial results reveal that approximately 95% of its operating profit is generated from domestic operations. For the fiscal year ending June 2026, consolidated revenue was 2.4452 trillion yen, with operating profit of 174.8 billion yen. Domestic operations contributed 165.8 billion yen in operating profit, while North American operations contributed 3.4 billion yen and Asian operations 5.5 billion yen. In terms of revenue composition, overseas accounts for over 15%, but in operating profit, overseas accounts for only 5%. Notably, the operating margin for North American operations is 1.3%, significantly lower than the domestic margin of 8.0%. The North American operations hold the majority of the unamortized goodwill balance of 61.8 billion yen, and the latest full-year goodwill amortization of 5.7 billion yen and impairment loss of 6.9 billion yen are weighing on profits. The stock price fell to 777 yen on September 1, marking a one-month low.
North American operations' low 1.3% margin plus 5.7B yen goodwill amortization and 6.9B yen impairment loss are weighing on profits.