Cosel revises full-year forecast downward, maintains dividend despite projected loss

Cosel Co., Ltd. has revised its consolidated full-year forecast for FY2025, with projected net sales of JPY 24,119 million, down JPY 9,206 million from the previous forecast of JPY 33,325 million. The company now anticipates an operating loss of JPY 814 million, a significant decline from the previously forecasted operating profit of JPY 2,626 million. This revision follows a weaker-than-expected first half, where actual net sales reached JPY 11,134 million, falling short of the JPY 14,728 million forecast, resulting in an operating loss of JPY 659 million for the interim period.

Despite the downturn, Cosel’s board of directors has approved an interim dividend of JPY 27 per share, payable on February 3, 2026, consistent with previous announcements. The year-end dividend forecast remains unchanged at JPY 28 per share, bringing the total annual dividend to JPY 55 per share for FY2025. The company’s forecast does not include potential foreign exchange gains or losses for the second half, citing the unpredictable nature of currency movements.

In addition to the financial revisions, Cosel announced the dissolution and liquidation of its non-consolidated subsidiary, Cosel Vietnam Co., Ltd., to optimize group management and strengthen its supply chain. This move, along with the planned dissolution of Shanghai Kesu Commercial Co., Ltd. (SCIT), is part of a broader strategy to streamline operations and focus on growth areas, including expanding cross-selling opportunities with LITEON and developing new COSELSYNC products for the mid-range market, targeting JPY 5 billion in sales within three years.