FY2027-H1: Focus on whether the plan is on track and the extent to which second-half weighting is being reduced

In FY2027 1Q, revenue was ¥991 million, operating profit was ¥48 million, ordinary profit was ¥47 million and net income was ¥9 million. The full-year forecasts are revenue of ¥4,187 million, operating profit of ¥327 million, ordinary profit of ¥322 million and net income of ¥353 million, representing 1Q progress of 23.7%, 14.8%, 14.8% and 2.7%, respectively. Revenue was close to the simple quarterly benchmark of 25%, while progress in operating profit and net income was relatively low.

However, this is the first year in which the company has moved to consolidated accounting from 1Q, and no consolidated results or year-on-year changes for the same period last year have been disclosed. Last year's 1Q operating loss of ¥43 million and operating margin of negative 6.8% provide reference information, but they were on a non-consolidated basis and therefore cannot be compared directly with this year's consolidated figures. In H1, it will be important whether the company can explain separately the consolidation effect of ジンジブキャリア and changes in the existing employment-support business.

The earnings presentation explains that revenue is seasonal, increasing in 2Q, the month in which job postings for new high-school graduates open, and in 4Q, when repeat contracts become fully active. It is therefore too early to conclude from the 1Q operating profit progress rate of 14.8% alone that the full-year target will be missed, but the amount of profit accumulated in H1 will be important for assessing the profit required in the second half. In particular, we will monitor whether H1 operating profit exceeds the 1Q progress rate of 14.8% against the ¥327 million full-year forecast, and whether the gap with the 23.7% revenue progress rate narrows.

In its August announcement, the company raised its full-year ordinary profit forecast by 5.2%, from ¥306 million to ¥322 million, while the 1Q materials set out assumptions including a ¥327 million consolidated operating profit forecast. In the H1 results, it will be necessary to review cumulative revenue, operating profit, ordinary profit and net income, as well as standalone 2Q figures, the increase attributable to seasonality, and whether the full-year forecasts are maintained or revised again.