Revenue and operating profit are soft, but full-year forecasts remain unchanged

Revenue for the interim period was ¥13,139 million, down 2.1% from ¥13,419 million in the same period a year earlier. Operating profit also fell short of the ¥780 million recorded in the same period a year earlier, at ¥769.867 million, resulting in lower revenue and operating profit at the operating level. However, the operating margin was approximately 5.86%, broadly flat from approximately 5.82% in the same period a year earlier, so the decline in revenue did not translate directly into a significant deterioration in profitability.

At the ordinary profit level, ordinary profit rose 4.1% to ¥1,048.612 million from ¥1,006 million in the same period a year earlier. The increase in dividend income and other factors were cited as drivers, indicating that non-operating income is offsetting the weakness in operating profit. Interim net profit attributable to owners of the parent also increased 0.8% to ¥703.274 million, but this does not directly indicate growth in operating profit from the core business. In the next results announcement, the changes in operating profit and ordinary profit should be assessed separately.

The company’s forecasts for the fiscal year ending December 2026 are revenue of ¥28,000 million, operating profit of ¥1,350 million and net profit attributable to owners of the parent of ¥1,120 million, and these remained unchanged in the latest interim results. Progress as of the interim period was 46.9% for revenue, 57.0% for operating profit and 62.8% for net profit. In the third quarter, it will be necessary to confirm not only whether cumulative revenue has simply declined year on year, but also whether operating profit is building toward the ¥1,350 million forecast as planned and whether dependence on non-operating income is increasing.