First-quarter loss in the first year of consolidation and the substantial improvement in the full-year forecast

The first quarter of the fiscal year ending March 2027 was the first consolidated quarter after 4 companies, including BJC, were newly added to the scope of consolidation. Revenue was ¥11,075 million, operating loss was ¥531 million, ordinary loss was ¥737 million, and quarterly net loss attributable to owners of the parent was ¥495 million. There were no consolidated results in the same quarter of the previous year, so care is needed because growth and margins cannot be assessed using a simple year-on-year comparison.

The full-year forecasts are revenue of ¥56,000 million–¥60,000 million, operating profit of ¥7,500 million–¥10,000 million, and adjusted net profit of ¥5,900 million–¥7,400 million. First-quarter revenue represents 19.8% of the lower end and 18.5% of the upper end of the full-year forecast range. As the company was operating at a loss of ¥531 million in the first quarter, it will need to generate cumulative operating profit of approximately ¥8,031 million–¥10,531 million from the second quarter onward to achieve the full-year operating profit forecast.

The unconsolidated results for the fiscal year ended March 2026 were revenue of ¥29,359 million and operating profit of ¥3,802 million, while FY2027 is on a consolidated basis including the acquired companies. The business scope therefore differs from that of the previous year. In FY2027-H1, it will be necessary to distinguish between revenue growth from the expanded scope of consolidation and the extent to which fixed-cost burdens, including the shift in sales channels and post-acquisition costs, have been absorbed, rather than simply checking whether cumulative revenue has increased.

At the next earnings announcement, it will be important to see whether the company can disclose Q2 cumulative revenue, operating profit, ordinary profit and net profit, as well as standalone Q2 revenue and operating income or loss. To determine whether the first-quarter loss resulted from temporary launch costs or from a delay in profit generation relative to the full-year plan, operating margin, the SG&A ratio and whether the full-year forecast has been revised must also be reviewed together.