Rizap Incurs 1st Group Net Loss in 11 Years
Tokyo, May 16 (Jiji Press)--Japanese fitness gym operator Rizap Group Inc. <2928> has reported its first annual group net loss in 11 years, citing poor performance at subsidiaries and massive restructuring costs.
For the year that ended in March, Rizap logged a net loss of 21,498 million yen, against the year-before profit of 10,472 million yen, according to the company's announcement Wednesday.
The operating balance deteriorated to a loss of 9,388 million yen from a profit of 11,780 million yen. But sales jumped 82.3 pct to 222,500 million yen.
Some of the subsidiaries Rizap acquired in its shopping binge in the past years performed poorly, including music store operator Wonder Corp. <3344>, Rizap officials said.
Costs to shut unprofitable group outlets and losses on the sale of sluggish businesses also ballooned, the officials also said.
[Copyright The Jiji Press, Ltd.]