Q1 operating profit reached 76.4% of the full-year forecast, with sustainability to be tested in FY2027-H1

Revenue for Q1 of the fiscal year ending March 2027 was ¥11,764 million, up 2.2% year on year, while operating profit was ¥382 million, up 39.1%. Ordinary profit was ¥413 million and profit attributable to owners of the parent was ¥300 million, up 36.9% and 40.0% year on year, respectively. Profit growth was stronger than revenue growth, with the simple operating margin rising by approximately 0.9 percentage points, from approximately 2.4% in the year-earlier quarter to approximately 3.2%.

Progress against the full-year forecast was approximately 23.5% for revenue, calculated as ¥11,764 million ÷ ¥50,000 million, and approximately 76.4% for operating profit, calculated as ¥382 million ÷ ¥500 million. As 25% of the first quarter of the fiscal year has elapsed, revenue is broadly in line with the plan, while operating profit is well ahead of a simple time-apportioned level. However, the company has not disclosed its H1 profit plan or quarterly forecasts, so full-year achievement cannot be judged on the basis of these progress ratios alone.

If the full-year forecast is unchanged, the operating profit required after Q1 is ¥118 million and the remaining revenue required is ¥38,236 million. Accordingly, at the next results announcement it will be necessary to distinguish not only H1 cumulative operating profit but also how much profit was added in Q2 alone. Whether H1 cumulative operating profit exceeds ¥382 million and whether the approximately 3.2% Q1 operating margin can be maintained will be specific measures of the sustainability of this early profit performance.

As of Q1, the company had not revised its full-year forecasts, maintaining revenue of ¥50,000 million, operating profit of ¥500 million, ordinary profit of ¥500 million and net profit of ¥300 million. At the next results announcement, it will be necessary to confirm not only whether the strong Q1 results lead to an upward revision, but also how the company explains its profit assumptions for Q2 onward if the forecasts are maintained.