KADOKAWA has sharply revised its consolidated net profit forecast for the fiscal year ending March 2027, from ¥5.8 billion to ¥1.0 billion. The company said it had recorded approximately ¥5.4 billion in extraordinary losses related to the early retirement program, with 154 people applying. Its forecasts for net sales and operating profit remain unchanged.
KADOKAWA revised its consolidated earnings forecast for the fiscal year ending March 2027 on the 13th. While its forecasts for net sales, operating profit and ordinary profit remain unchanged at ¥300.3 billion, ¥10.1 billion and ¥12.0 billion, respectively, net profit attributable to owners of the parent was cut by 82.8%, from ¥5.8 billion to ¥1.0 billion.
The main reason for the downward revision to net profit was the recording of approximately ¥5.4 billion in extraordinary losses during the quarter in connection with the results of the special early retirement recruitment program announced on 2 July. The company expects approximately ¥1.1 billion in personnel cost savings from the second quarter onward, but has not changed its forecasts for operating profit or ordinary profit.
Results for the previous fiscal year were net sales of ¥282.9808 billion, operating profit of ¥8.102 billion, ordinary profit of ¥11.701 billion and net profit of ¥1.278 billion. The cumulative first-quarter period progressed largely as expected, mainly reflecting business reforms in the Publishing and IP Creation segment, the company said.