Q1 combines operating profit growth with declines in ordinary and net income

Operating revenue in the first quarter of the fiscal year ending February 2027 was ¥135,893 million, up 3.0% from the prior-year period, while operating income was ¥655 million, up 18.3%. Solid food sales and new store openings supported the top line, securing operating profit growth. However, ordinary income was ¥489 million, down 15.5%, and quarterly net income attributable to owners of the parent was ¥478 million, down 7.0%, indicating that operating profit growth has not flowed through to lower-line earnings.

The company attributed the increase in selling, general and administrative expenses to growth investments, including new store openings and the revitalisation of existing stores, human capital investment, sales promotions and higher costs associated with the absorption-type merger with トキハインダストリー. At the same time, it said it pursued efficiency improvements through DX investment, labour-saving fixtures and a review of checkout layouts. However, the first-quarter results summary does not provide a breakdown by amount of the reasons for the decline in ordinary income, such as non-operating income and expenses and finance costs.

In FY2027-H1, it will be necessary to determine whether the increase in operating income reflects temporary cost controls or is reproducible through improved gross profit and store productivity. In particular, the factors behind ordinary income falling below the prior-year period, changes in the tax burden and the impact of M&A-related costs should be confirmed, while tracking whether the gap between operating profit and net income narrows.