The key focus is whether the company can recover from the sharp Q1 decline and return to its FY2027 full-year forecasts of ¥3,400 million in revenue and ¥170 million in operating profit

Revenue in Q1 of the fiscal year ending March 2027 was ¥524 million, down 51.0% from ¥1,068 million in the same quarter a year earlier. Operating income turned from a ¥161 million profit in the prior-year quarter to a ¥92 million loss, while ordinary income and net income for the quarter were both losses of ¥75 million. The company cited the unwinding of temporary demand created by the acai boom a year earlier, adjustments to inventory held in distribution channels, and restraint on price increases to avoid discouraging consumer purchases as the main factors.

The full-year forecasts for the fiscal year ending March 2027 remain unchanged at ¥3,400 million in revenue, ¥170 million in operating profit, ¥150 million in ordinary profit and ¥100 million in net income. Simply deducting Q1 results from the full-year forecasts leaves ¥2,876 million in revenue and ¥262 million in operating profit to be generated over the remaining three quarters. Because operating profit was negative in Q1, progress should not be judged solely by the usual progress ratio. It will be important to see whether Q2 alone turned profitable and whether the cumulative H1 loss narrowed.

In Q1 of the fiscal year ended March 2026, revenue was ¥1,068 million and operating profit was ¥161 million, implying an operating margin of approximately 15.1%. By contrast, the operating margin this time was approximately negative 17.7%. The plan calls for revenue to rise 8.2% and operating profit 80.0% in the fiscal year ending March 2027, from revenue of ¥3,142 million and operating profit of ¥94 million in the fiscal year ended March 2026. As of Q1, however, the prior year's temporary demand and related cost front-loading occurred at the same time, and the assumptions underlying the plan have not yet been quantified.

At the next earnings release, investors will need to review standalone Q2 revenue and operating income in addition to cumulative H1 revenue and operating income. In particular, if H1 revenue falls below the simple half-year benchmark of ¥1,700 million, the revenue required in the second half to meet the full-year forecast will exceed ¥1,700 million, increasing the burden even on a simple comparison that excludes seasonality. The company has also not disclosed the numerical assumptions underlying its full-year forecasts, such as foreign exchange rates, raw-material prices and sales volumes. Accordingly, the review should cover not only whether the forecasts are maintained, but also whether the company provides additional support for a recovery in demand and cost absorption over the remainder of the year.