Casa slashes forecasts and dividend after doubtful account error

Casa Co. Ltd. has revised its consolidated financial forecast for the fiscal year ending January 2026, anticipating a substantial decrease in key metrics. The full-year revenue forecast was lowered to JPY 12,768 million from JPY 13,236 million, with operating income revised from JPY 1,017 million to a loss of JPY 298 million. Net income attributable to owners of the parent is now projected at a loss of JPY 90 million, a significant reduction from the previously forecasted JPY 701 million. These adjustments stem from a forecasting error in the allowance for doubtful accounts related to recourse receivables, where the actual amount exceeded initial predictions.

In response to the revised financial outlook, Casa also announced a reduction in its year-end dividend forecast for the fiscal year ending January 2026, from JPY 32.00 to JPY 15.00 per share. The company noted that this decision reflects a re-evaluation of its profit distribution policy in light of updated performance expectations. Management stated that they are implementing measures to improve forecasting accuracy and strengthen collection systems for overdue receivables.

Additionally, some directors will voluntarily return a portion of their remuneration to acknowledge management's responsibility for the revised forecasts. The company emphasizes its commitment to stable dividend policies, balancing shareholder returns with the need to strengthen its financial position and retain internal reserves for business operations.