Caica Digital revises earnings forecast downward after acquisition impact

Caica Digital has revised its consolidated earnings forecast for the fiscal year ending October 2025, anticipating lower sales and profits. The company now expects net sales of JPY 5,195m (down from JPY 5,409m), operating profit of JPY 70m (down from JPY 132m), and ordinary profit of JPY 76m (down from JPY 141m). A significant contributor to the revision is a projected net loss attributable to parent company shareholders of JPY 166m, a sharp decline from the previously forecast JPY 906m.

This substantial revision is primarily due to an extraordinary loss of JPY 705m, stemming from the full impairment of goodwill recognized upon the acquisition of NexCo. The company determined that the goodwill should be fully impaired due to an unexpected rise in Caica Digital's share price post-agreement and NexCo's underperformance.

Additionally, Caica Digital will recognize an extraordinary gain of JPY 685m from the reversal of allowance for doubtful accounts related to a claim against its subsidiary, Caica Financial Holdings. However, this is partially offset by an extraordinary loss of JPY 712m from the impairment of shares in NexCo. The company also noted that its medium-term management plan for the fiscal year ending October 2026 is currently under review.