Interim operating profit ahead of full-year plan; focus on securing ¥97 million in second-half profit

For the interim period of the fiscal year ending November 2026, revenue was ¥3,351 million, operating profit was ¥124 million, ordinary profit was ¥144 million, and interim net income attributable to owners of the parent was ¥48 million. The full-year forecasts are revenue of ¥7,033 million, operating profit of ¥221 million, ordinary profit of ¥219 million, and net income of ¥144 million, representing progress rates of 47.7%, 56.1%, 65.8%, and 33.3%, respectively. Revenue is slightly below the simple 50% benchmark for half the fiscal year, while operating profit and ordinary profit are both above half of their respective plans.

To achieve the full-year plan in the remaining second half, the company needs revenue of ¥3,682 million, operating profit of ¥97 million, ordinary profit of ¥75 million, and net income of ¥96 million. Since ¥124 million in operating profit had already been secured by the end of the interim period, the company needs to earn ¥97 million in the second half. The required amount of profit is therefore relatively small compared with the remaining revenue target. However, the net income progress rate remains at 33.3%, so the improvement in operating profit has not flowed through directly to the bottom line. In the third quarter, it will be necessary to monitor the build-up in net income, including the tax burden and non-operating income and expenses.

Compared with the same period of the previous year, interim revenue increased 10.2% from approximately ¥3,040 million to ¥3,351 million, while operating profit rose 111.1% from approximately ¥59 million to ¥124 million. The company attributes the increases in revenue and profit to revisions to service outsourcing fees, operational reviews, system implementations for new retailers, expansion of optional services, acquisition of new customers, and increases in agricultural product sales and collection volumes. However, it has not disclosed how many millions of yen of profit each factor contributed. In the third quarter, the key issue will be whether the effects of fee revisions and system implementations are continuing or were concentrated in the interim period.

The full-year earnings forecasts were not revised as of the interim period, and the annual dividend forecast was also maintained at ¥5.00. In addition, the company has not provided quarterly forecasts. Accordingly, the third-quarter assessment should combine more than a simple 75% progress benchmark, including comparison with cumulative revenue of ¥4,742 million and operating profit of ¥52 million in the third quarter of the previous year, the amount required in the fourth quarter to meet the full-year forecasts, and trends in profit margins.