Q1 is progressing smoothly against the full-year plan, but H1 will confirm whether profit remains ahead of plan.

Revenue in Q1 of the fiscal year ending March 2027 was ¥10,792 million and operating profit was ¥1,717 million, representing year-on-year increases of 4.2% and 25.2%, respectively. The full-year forecasts are ¥44,017 million in revenue and ¥6,600 million in operating profit, giving simple progress rates of 24.5% and 26.0%, respectively. Compared with the 25% of the fiscal year elapsed in Q1, revenue was broadly in line with plan, while operating profit was approximately 1.0 percentage point ahead.

However, the company has disclosed only full-year forecasts and has not provided standalone H1 revenue or operating profit forecasts or quarterly seasonality. Accordingly, the figures of ¥22,009 million in revenue and ¥3,300 million in operating profit are not formal company targets for H1, but merely comparison benchmarks based on mechanically allocating 50% of the full-year forecasts. Actual profit progress may vary depending on the timing of childcare facility openings, subsidy recognition and seasonal changes in the number of children.

At the next earnings announcement, H1 cumulative results should be reviewed together with standalone Q2 revenue and operating profit. The company cited new facility openings and operating contracts, an increase in the number of children, the ALT business, subsidy-related measures, and improvements in hiring, procurement and operating efficiency as reasons for Q1's profit growth, but it has not disclosed the monetary contribution of each factor. Even if operating profit exceeds ¥3,300 million, it will be necessary to check whether Q2 includes any reversal of temporary subsidies or expenses.