Japanese technology company SoftBank Group posted a USD 23.4 billion loss in the April-June quarter as the value of its investments sank amid global worries about inflation and interest rates.

SoftBank Group Corp.’s loss of 3.16 trillion yen was a reversal from its 762 billion yen profit in the same quarter a year earlier. The company said on Monday that quarterly sales rose 6 per cent.

For the fiscal year that ended in March, Softbank racked up losses of 1.7 trillion yen (USD 13 billion), a reversal from the 4.9 trillion yen profit for the previous year. Annual sales grew 10.5 per cent to 6.2 trillion yen (USD 46 billion).

Although Softbank’s portfolio is not directly exposed to the war in Ukraine, the company warned that global uncertainty as well as inflation and soaring energy costs would likely hurt its profitability. Foreign exchange losses also bit into its earnings.

Softbank’s intended sale of British semiconductor and software design company Arm to Nvidia failed earlier this year.