For FY2027-H1, the focus is on the profit ramp-up rather than revenue against the full-year forecast

Revenue for FY2027-Q1 was ¥3,784 million, up 36.5% year on year. However, operating loss was ¥99 million, ordinary loss was ¥277 million, and quarterly net loss attributable to owners of the parent was ¥211 million, leaving all 3 levels of profit in the red. Revenue progress against the full-year forecast of ¥18,000 million was 21.0%, approximately 4 percentage points below the 25% implied by simple even quarterly progress, while operating profit progress against the full-year forecast of ¥608 million was negative.

The company explained that upfront costs, including higher costs associated with expanding the scale of operations centered on the hotel conversion and nursing-care staffing businesses, were incurred, and said these were within the range anticipated in the plan at the start of the fiscal year. However, it has not disclosed the total amount of upfront costs or how much was incurred in each area, such as hotels, nursing care and call centers. No cash flow statement was prepared for Q1, so the relationship between the accounting impact of the losses and cash outflows cannot be confirmed.

Next time, we will review cumulative second-quarter revenue and operating profit together with the levels required for the remaining period against the full-year forecasts. Based on simple even half-year progress, revenue of ¥9,000 million and operating profit of ¥304 million would be mechanical benchmarks. Given the Q1 operating loss of ¥99 million, operating profit of approximately ¥403 million in Q2 alone would be required to reach half-year operating profit of ¥304 million. This is an estimate for measuring progress, not company guidance. It will also be necessary to check whether the forecasts are revised, when the upfront costs will run their course, and whether loss-making segments improve.