Operating profit turned positive in Q1, but the focus is whether the recovery became established in the first half

Consolidated revenue for Q1 of the fiscal year ending March 2027 was ¥15,624 million, down 9.0% year on year. Operating profit, however, was ¥243 million, turning positive from an operating loss of ¥89 million in the year-earlier quarter. Ordinary profit was ¥616 million, and profit attributable to owners of the parent was ¥331 million, with profitability secured from the operating level through to the bottom line. However, profit improved alongside a decline in revenue, so it is necessary to distinguish between a sustainable improvement accompanied by a recovery in volumes and an improvement driven by temporary factors such as inventory valuation losses.

By segment, the Sugar segment posted revenue of ¥10,580 million and an operating loss of ¥57 million. Since Sugar accounted for approximately 67.7% of Q1 revenue, its earnings have a major impact on consolidated results. Food recorded revenue of ¥819 million and operating profit of ¥77 million, Feed revenue of ¥2,749 million and an operating loss of ¥3 million, Agricultural Materials revenue of ¥847 million and operating profit of ¥63 million, and Real Estate revenue of ¥305 million and operating profit of ¥175 million. Higher profit in Food and Real Estate contributed to results, while Feed remained loss-making despite higher revenue.

The comparable first half of the fiscal year ended March 2026 recorded revenue of ¥32,978 million and an operating loss of ¥148 million. Sugar recorded revenue of ¥24,173 million and an operating loss of ¥309 million, Food recorded operating profit of ¥93 million, Feed an operating loss of ¥103 million, Agricultural Materials an operating loss of ¥45 million, and Real Estate operating profit of ¥261 million. In the next disclosure, we will look for whether first-half operating profit turns positive from the year-earlier loss and whether the reduction in the Sugar segment's loss depends solely on higher profit in Food and Real Estate.