Rizap Suffers Net Loss for 2nd Consecutive Year

Economy

Tokyo, June 10 (Jiji Press)--Rizap Group Inc. <2928> said Wednesday it had a second consecutive annual net loss in the year ended in March as its gym membership fell sharply due to the coronavirus pandemic.

The Japanese company’s consolidated net loss totaled 6,046 million yen, though down from 19,423 million yen in the previous year. It booked large impairment losses on less profitable gyms.

“The number of new members has decreased sharply since February, when coronavirus cases involving a gym were reported,” Rizap President Takeshi Seto said.

In addition, an apparel unit ran into financial difficulty after Japan’s consumption tax was raised from 8 pct to 10 pct in October.

Rizap posted an operating loss of 752 million yen after a loss of 8,394 million yen in the previous year.

[Copyright The Jiji Press, Ltd.]

Jiji Press