FY2027 Q1 was strong, but the focus next time will be whether lower food-segment earnings can be absorbed

For the first quarter of the fiscal year ending March 2027, consolidated revenue was ¥257.2 billion, operating profit was ¥12.4 billion, ordinary profit was ¥11.6 billion, and profit attributable to owners of the parent was ¥7.4 billion. Revenue increased 14.1% year on year, operating profit 20.9%, ordinary profit 13.7%, and net profit 14.3%. Revenue and operating profit reached record highs for a first quarter. The full-year forecasts are revenue of ¥1 trillion, operating profit of ¥42.5 billion, ordinary profit of ¥43.0 billion, and net profit of ¥29.0 billion.

First-quarter progress toward the full-year forecasts was 26.3% for revenue, 29.3% for operating profit, 27.1% for ordinary profit, and 25.7% for net profit. Operating profit is ahead of revenue in first-quarter progress, but achieving the full-year plan will likely require both revenue and operating profit to be around 50% of plan by FY2027 H1. The revenue forecast was raised from ¥980.0 billion to ¥1 trillion, reflecting a revision to the assumed exchange rate from ¥150 to ¥155 per dollar and strong performance in the fisheries business. The forecasts for operating profit of ¥42.5 billion, ordinary profit of ¥43.0 billion, and net profit of ¥29.0 billion were unchanged.

By segment, the fisheries business recorded revenue of ¥107.6 billion and operating profit of ¥5.4 billion, representing year-on-year increases of 24.6% and 72.6%, respectively. The food business recorded revenue of ¥138.2 billion and operating profit of ¥8.4 billion. Revenue increased 7.4%, while operating profit declined 4.1%. The fine chemicals business recorded revenue of ¥3.8 billion and operating profit of ¥0.5 billion, while the logistics business recorded revenue of ¥4.2 billion and operating profit of ¥0.5 billion. Group-wide profit growth was driven largely by fisheries, which absorbed the decline in food-segment earnings caused by higher raw material costs.

Next time, it will be necessary to determine whether the upward revenue revision reflects higher volumes and expanded sales or merely an apparent increase resulting from foreign-exchange translation. The first-quarter materials do not disclose a company-wide table matching prices with volumes, the amount of risk incorporated into the full-year plan, or orders received and order backlog. In FY2027 H1, the focus will be on whether the fisheries business can raise its operating profit progress from 25.2% in the first quarter to a level appropriate for the first half, whether food-segment operating profit recovers from its year-on-year decline, and whether the full-year profit forecasts are maintained.