A strong start in Q1, but can H1 overturn the full-year earnings decline forecast?

The next scheduled earnings announcement currently disclosed is 13 November 2026. In the latest Q1, revenue was ¥4,155.8 million, operating profit was ¥282.4 million, ordinary profit was ¥296.0 million, and net income attributable to owners of the parent was ¥199.0 million, representing year-on-year increases of 7.2%, 17.0%, 20.1% and 10.7%, respectively. The company attributed the revenue growth to sales to Japan's food-service industry and sales to the US food-service and convenience-food markets, indicating that demand conditions were not weak, at least at the start of the year.

However, revenue is ahead of profit in terms of progress against the full-year plan. Q1 revenue progress was 4,155.8 million ÷ 18,423 million, or 22.6%; operating profit was 282.4 million ÷ 1,546 million, or 18.3%; and net income was 199.0 million ÷ 1,129 million, or 17.6%. If half of the full-year plan is used simply as an H1 benchmark, the comparison figures are revenue of ¥9,211.5 million, operating profit of ¥773.0 million and net income of ¥564.5 million. However, the company has not disclosed formal H1 targets or seasonality, so these figures are only mechanical reference points.

Compared with the previous fiscal year, FY2026 revenue of ¥17,343.3 million increased 6.7%, while operating profit of ¥1,566.4 million declined 1.6% and net income of ¥1,153 million declined 4.6%. The FY2027 plan calls for revenue to rise 6.2% to ¥18,423 million, while operating profit is expected to decline 1.3% to ¥1,546 million, ordinary profit to decline 3.5% to ¥1,541 million, and net income to decline 2.1% to ¥1,129 million. As of Q1, there has been no change to this full-year earnings forecast.

Accordingly, in H1 it will not be sufficient to look only at whether revenue and profit increased year on year. We will need to see whether revenue reaches 50% of the plan, whether operating profit accumulates at a corresponding pace, and whether the company raises its full-year operating profit forecast of ¥1,546 million. After Q1, ¥1,263.6 million in operating profit remains necessary to meet the full-year forecast. If profit progress does not approach revenue progress in H1, the full-year forecast of higher revenue but lower profit is likely to remain unchanged.