Whether Q1’s front-loaded profit growth continues into FY2027-H1 is the key to the full-year profit decline plan

Revenue in Q1 of FY2027 was ¥71,981 million, operating profit was ¥1,447 million, ordinary profit was ¥1,710 million, and profit attributable to owners of the parent was ¥1,102 million. These figures represented year-on-year increases of 1.3%, 15.9%, 6.2% and 5.5%, respectively, showing increases across revenue and every profit level. Calculated against the full-year forecasts, revenue reached ¥71,981 million ÷ ¥285,000 million, or 25.3%, while operating profit reached ¥1,447 million ÷ ¥5,100 million, or 28.4%. Operating profit therefore ran 3.1 percentage points ahead of revenue.

The company’s full-year forecasts are revenue of ¥285,000 million, operating profit of ¥5,100 million, ordinary profit of ¥6,000 million and net profit of ¥3,000 million. Compared with the previous fiscal year, these imply a 0.2% increase in revenue but declines of 24.8% in operating profit, 24.0% in ordinary profit and 6.3% in net profit. Q1 operating profit growth of 15.9% is therefore at odds with the full-year assumption of lower profits, raising the question of whether the effects of pricing measures and more efficient sales promotion are temporary or represent a structural improvement that will continue into the second half. As of Q1, the full-year forecasts had not been revised, and the company had not disclosed quarterly profit plans or an H1 profit forecast.

As a simple half-year progress benchmark, revenue of ¥142,500 million and operating profit of ¥2,550 million would each represent 50% of the full-year forecast. However, in retail, seasonality and the timing of promotional activity affect performance, so these figures are benchmarks for comparison rather than company targets. In FY2027-H1, the key points will be whether standalone Q2 operating profit exceeds the year-earlier level, whether cumulative H1 operating profit continues to progress ahead of revenue, and whether margins are sufficient to support the ¥5,100 million full-year forecast.