FY2027 1Q reached 86.8% of the full-year operating profit plan, but sustainability will be assessed in H1

FY2027 1Q, covering April to June 2026, generated revenue of ¥24,118 million, up 16.7% year on year, and operating profit of ¥781 million, up 95.3%. Ordinary profit was ¥928 million and net income attributable to owners of the parent was ¥627 million, up 83.2% and 95.2%, respectively. Revenue progress against the full-year forecast of ¥95,000 million was 25.4%, broadly in line with the proportion of the fiscal year elapsed, while operating profit had already reached 86.8% of the full-year forecast of ¥900 million.

Profit progress alone looks very strong, but the key point is that the full-year forecast had not been revised as of the 1Q results. Ordinary profit had reached 92.8% of the ¥1,000 million full-year forecast, while net income had reached 83.6% of the ¥750 million forecast. It is therefore reasonable to assume that the company plan incorporates the possibility of higher promotional, raw material and logistics costs, as well as post-acquisition expenses, from 2Q onward, or seasonal factors. However, the amounts of these items had not been disclosed as of 1Q.

In FY2026 1Q, revenue was ¥20,669 million and operating profit was ¥400 million, making the increase in operating profit this time ¥381 million. The next point to check is whether revenue of ¥43,855 million and operating profit of ¥712 million in FY2026 H1 can be exceeded. In particular, if operating profit falls sharply in 2Q alone, the likelihood increases that the strong 1Q progress was temporary, driven by the timing of price revisions or promotional activity.

In FY2027 H1, the focus will be on cumulative H1 revenue and operating profit, as well as a quantitative explanation of why the full-year forecast is being maintained. As of 1Q, the company cited appropriate price pass-through, sales focused on profitability, new product launches and a review of food-service outlets, but it had not disclosed the profit contribution of each initiative or the amount of cost increases expected in H2.