MATSUMOTO INC. (TSE: 7901), the school-album and commercial printer, disclosed a material uncertainty about its ability to continue as a going concern in the quarterly earnings it filed. The company said cash and deposits fell ¥362mn during the three months to July 2026, to ¥313.9mn from ¥676.7mn at the end of April 2026, while short-term borrowings, at ¥200mn, held flat. Funds on hand, cash minus outstanding loans, dropped ¥360.9mn from the prior year-end.
The warning follows three straight years of operating and ordinary losses and four straight years of negative operating cash flow. For the quarter ended July 2026, sales were ¥380mn, down 0.6% from a year earlier, while the operating loss narrowed to ¥96mn from ¥139mn and the net loss narrowed to ¥100mn from ¥136mn. Loss per share was ¥88.60, against ¥120.31 a year earlier.
| Metric | Q1 to Jul 2026 | Q1 to Jul 2025 |
|---|---|---|
| Net sales | ¥380mn | ¥382mn |
| Operating loss | ¥96mn | ¥139mn |
| Ordinary loss | ¥99mn | ¥134mn |
| Net loss | ¥100mn | ¥136mn |
| Loss per share | ¥88.60 | ¥120.31 |
The company's school-album business, roughly 81% of annual sales, is concentrated in the February-to-March graduation season. Collections arrive mostly in spring while payables and other costs front-load in December and January, a timing gap management says it normally bridges with cash on hand and bank borrowing. Combined with negative operating cash flow, that mismatch is what produced the one-year funding concern flagged in the filing.
To address it, MATSUMOTO says it is raising school-album prices to recover higher material and freight costs, cutting labor and personnel costs by about 4% from a year earlier, and cutting the representative director's compensation by 40% "to clarify management responsibility." It also plans to consolidate factories and offices and limit new capital spending to replacement investment only. The company notes these measures are still being carried out and that some have not reached final agreement with relevant parties, which is why it is disclosing a material uncertainty rather than treating the funding risk as resolved.
Despite the disclosure, MATSUMOTO left its full-year forecast unchanged: sales of ¥2,186mn, up 2.8%, operating profit of ¥32mn, ordinary profit of ¥10mn and net profit of ¥48mn, down 68.8% from the prior year, with earnings per share of ¥42.91. The company does not plan to pay a dividend. Net assets stood at ¥915mn at quarter-end, down from ¥996mn, with an equity ratio of 44.0%.
The filing does not name a lender or set a date by which the remediation plan must succeed. It states only that the uncertainty exists as of the July 31 balance sheet date, and that the financial statements are prepared on a going-concern basis without adjusting for that uncertainty.