Can the strong start in the first quarter carry through to delivery in the first half and for the full year?

First-quarter revenue was ¥86,287 million, operating profit was ¥3,057 million, ordinary profit was ¥2,987 million, and quarterly profit attributable to owners of the parent was ¥2,143 million. Progress against the full-year forecasts was 23.6%, 25.5%, 27.2% and 29.8%, respectively, with profit progress slightly ahead of revenue. All major profit measures increased year on year, with revenue up 13.5%, operating profit up 17.2%, ordinary profit up 21.7% and net profit up 28.5%.

Using half of the full-year forecasts as a simple first-half benchmark, cumulative second-quarter revenue of ¥182,500 million, operating profit of ¥6,000 million, ordinary profit of ¥5,500 million and net profit of ¥3,600 million would be key reference points. On this basis, second-quarter revenue of ¥96,213 million and operating profit of ¥2,943 million would be required based on first-quarter results. This is a mechanical calculation that does not account for seasonality and is not the company's first-half plan. In practice, comparison with the previous year's cumulative second-quarter results, namely revenue of ¥155,996 million, operating profit of ¥4,555 million, ordinary profit of ¥4,172 million and net profit of ¥2,814 million, will also be important.

The company cited sales contributions from acquired companies, strong sales in China, increased sales of high-priced products such as roe, favourable catches and market conditions, and price pass-through and price revisions as factors behind the first quarter's revenue and profit growth. It also described higher raw material prices, competition from low-priced overseas products and lower profit in Europe. Since no supplementary financial-results materials or earnings briefing was held for the first quarter, and no amount bridge by factor or sales volumes were disclosed, the focus for the first half will be how far the company quantifies sales volumes and unit prices, price pass-through, raw material costs and the European business's profit contribution.