Will the plan for higher revenue and profit for FY2027, the fiscal year ending June, be validated from Q1?

For FY2026, the fiscal year ending June, revenue was ¥23.238 billion, operating profit was ¥2.649 billion, ordinary profit was ¥2.673 billion and net profit was ¥1.921 billion. Revenue increased 10.3% year on year and operating profit rose 53.3%. The operating margin also improved by 3.2 percentage points, from 8.2% in the previous fiscal year to 11.4%, indicating that profit growth outpaced revenue growth rather than the result being driven solely by a larger revenue base.

The company’s plan for FY2027, the fiscal year ending June, calls for revenue of ¥26.500 billion, operating profit of ¥3.180 billion, ordinary profit of ¥3.180 billion and net profit of ¥2.067 billion. Growth versus the previous fiscal year’s results is expected to be 14.0% for revenue, 20.0% for operating profit, 19.0% for ordinary profit and 7.5% for net profit. The operating margin would be 12.0% on a simple calculation, representing a further improvement from 11.4% in FY2026, despite the plan incorporating higher depreciation expenses at the new plant.

In the next reporting period, FY2027-Q1, it will be necessary to assess not only simple progress against the full-year forecasts but also whether revenue growth is driven by the per-unit impact of price revisions or by higher sales volume and an expanded customer base. The company has attributed FY2026’s profit growth to improvements at production sites, a lower loss rate and an improved manufacturing cost ratio. If revenue alone grows in Q1 while the operating margin declines, confidence in the profit-growth assumptions underlying the full-year plan will weaken.

At the same time, the company has consistently explained that its product mix of tofu, thick fried tofu and fried tofu results in lower profit in Q1 and higher profit in Q2. Accordingly, Q1 operating profit falling below the full-year average alone would not necessarily indicate that the plan is off track. In the Q1 results announcement, the key points will be the company’s assessment in light of seasonality, whether it maintains its full-year forecasts, and the specific changes in raw-materials, logistics and depreciation expenses.