First-quarter performance broadly tracked the full-year plan

Revenue in the first quarter of the fiscal year ending March 2027 was ¥35,370 million, up 4.4% year on year. Operating profit was ¥2,061 million, up 43.5%, and ordinary profit was ¥2,108 million, up 58.4%. The operating margin rose by approximately 1.6 percentage points, from 4.2% in the year-earlier quarter to 5.8%, securing profit growth above the rate of revenue growth. Revenue increased in the domestic rice cracker business and overseas operations, while price revisions, concentration on key brands, improved production efficiency and higher profitability at TH FOODS, INC. drove profit growth.

Progress against the full-year forecasts was 24.7% for revenue, calculated as ¥35,370 million ÷ ¥143,000 million, and 24.8% for operating profit, calculated as ¥2,061 million ÷ ¥8,300 million. The deviation from simple one-quarter progress was approximately 0.3 percentage points for both revenue and operating profit, indicating no significant shortfall against the company’s plan as of the first quarter. To reach 50% of the full-year forecasts on a cumulative first-half basis, the benchmarks are revenue of ¥71,500 million and operating profit of ¥4,150 million. This puts second-quarter revenue of ¥36,130 million and operating profit of ¥2,089 million at one reference point for assessment.

On the other hand, quarterly net profit attributable to owners of the parent was ¥1,375 million, down 93.7% year on year. This was mainly due not to weaker operating performance, but to the absence of the ¥20,598 million gain on the step acquisition recorded in the year-earlier quarter in connection with TH FOODS, INC. becoming a consolidated subsidiary. Special losses in the current quarter were limited to a ¥17 million loss on disposal of fixed assets, and there were no significant impairment losses. The differing directions of operating profit and net profit should therefore not be interpreted as a deterioration in the business’s earnings power.

At the next FY2027-H1 results announcement, it will be important to check not only whether revenue and operating profit both reach 50% progress, but also whether the effect of the price revisions continues into the second quarter rather than being temporary. The company has not revised its full-year forecasts of ¥143,000 million in revenue, ¥8,300 million in operating profit, ¥7,700 million in ordinary profit and ¥4,300 million in profit attributable to owners of the parent. Its dividend forecast also remains unchanged at ¥24 after the stock split. Accordingly, if first-half operating profit falls below ¥4,150 million, the company will need to explain the assumption of a second-half concentration of earnings and any additional cost factors.