FY2027-H1 earnings accumulation will determine whether the ¥1,200 million full-year operating profit target is achievable

In the first quarter of the fiscal year ending March 2027, net sales were ¥6,668 million, down 7.0% year on year, while operating profit improved to ¥240 million and ordinary profit to ¥196 million. Progress toward the full-year operating profit forecast of ¥1,200 million was 20.0%, while progress for net sales was 23.5%. The decline in net sales was partly affected by the inclusion of Aineed's results for the same period of the previous fiscal year in the comparison, even though Aineed was excluded from the consolidated scope on 2 March 2026. It is therefore necessary to verify growth in the existing business on a first-half basis rather than conclude that the decline reflects a simple decrease in demand.

A simple benchmark based on dividing the full-year forecast by two is ¥14,164 million in net sales and ¥600 million in operating profit. This is not the company's first-half forecast, but a mechanical 50% progress line against the full-year targets. Based on first-quarter results, the company needs to generate a further ¥21,658 million in net sales and ¥959 million in operating profit from the second quarter onward. As net sales and operating profit in the first half of the previous fiscal year were ¥14,680 million and ¥280 million, respectively, it will be important in FY2027-H1 to determine whether the improvement in operating profit is continuing rather than merely reflecting a one-off reduction in selling, general and administrative expenses, in addition to achieving revenue growth.

Operating profit was ¥1,093 million in the fiscal year ended March 2026, and the company is targeting ¥1,200 million for the fiscal year ending March 2027. The increase is only ¥107 million, or 9.8%, so the plan does not extrapolate the first quarter's sharp profit growth rate to the full year. At the next results announcement, key points will include cumulative net sales and operating profit for the second quarter, progress against the full-year forecasts, the impact of differences in the consolidated scope compared with the previous year, and the explanation of the profit required from the third quarter onward.