Create Corporation Revises Earnings Forecast Down 28.6% on Asset Impairment

Create Corporation Revises Earnings Forecast Down 28.6% on Asset Impairment

Create Corporation (TSE:3024) has lowered its net profit guidance for the fiscal year ending March 2026, citing an impairment charge related to declining land values at its Kakogawa office.

The company identified impairment indicators on business-use real estate at its Kakogawa office following a decline in land valuations. Amid uncertain macroeconomic conditions stemming from Middle East geopolitical tensions, management adopted more conservative cash flow projections. The recoverable amount of the asset fell below its book value, triggering a JPY 134M impairment loss recorded as an extraordinary item. Revenue, operating profit, and ordinary income (keijo rieki)—a Japan-specific metric combining operating profit with non-operating income and expenses—are each expected to fall modestly short of prior forecasts.

Despite the 28.6% net profit decline, Create Corporation maintained its year-end dividend at JPY 26/share, exceeding the company’s stated consolidated dividend payout ratio policy of 30 percent. Management views the impairment as a one-time charge with limited impact on underlying operating performance. The ordinary income decline of 3.0 percent reflects the broader revenue and cost pressures rather than operational deterioration, suggesting the company expects normalized earnings recovery in subsequent periods.

Source: Original filing (TDnet) | 日本語版

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