First-quarter results are around 25% of the full-year plan, but H1 achievement remains unverified

In the first quarter of the fiscal year ending March 2027, revenue was ¥9,193 million, up 8.2% year on year; operating income was ¥814 million, up 18.3%; ordinary income was ¥827 million, up 18.3%; and net income attributable to owners of the parent was ¥545 million, up 17.3%. The full-year forecasts are revenue of ¥37,500 million, operating income of ¥3,450 million, ordinary income of ¥3,450 million, and net income of ¥2,300 million. Actual progress against these forecasts was therefore 24.5%, 23.6%, 24.0%, and 23.7%, respectively.

The 3 months from April through June represent 25% of the full year, so revenue was close to plan, while operating income and net income were 1.4 and 1.3 percentage points below that benchmark, respectively. However, the company's first-quarter materials do not provide a self-assessment against the plan or the revenue and profit levels required for the remaining 9 months. Although the strength of the welfare-equipment services business can be confirmed, there is no quantitative information with which to assess seasonality or the allocation of earnings between H1 and H2.

Using a simple 50% of the full-year forecast as the benchmark for cumulative second-quarter results gives revenue of ¥18,750 million, operating income of ¥1,725 million, ordinary income of ¥1,725 million, and net income of ¥1,150 million. These are mechanical benchmarks that do not account for seasonality, not H1 forecasts provided by the company. In the next results release, we will check not only the variance from these benchmarks but also how the company expects rental revenue growth and cost increases to affect its ability to maintain full-year operating income of ¥3,450 million.