Q1 operating profit plunged, making the scope for recovery toward the full-year plan the key focus

FY2027-Q1 revenue was ¥24.213 billion, down ¥661 million, or 2.7%, from ¥24.874 billion in the same period of the previous year. Operating profit fell ¥337 million, or 93.7%, from ¥359 million to ¥22 million. The operating margin declined from approximately 1.4% in the same period of the previous year to approximately 0.1%, meaning that profit fell more sharply than revenue, an important point. Ordinary loss was ¥50 million, while the quarterly net loss attributable to owners of the parent was ¥153 million, both swinging from profit in the same period of the previous year to loss.

By segment, revenue from the domestic food business was ¥16.186 billion, down 3.3% year on year, and the segment posted a loss of ¥320 million. The overseas food business also deteriorated, with revenue of ¥2.650 billion, down 11.5%, and segment profit of ¥103 million, down 60.4%. In contrast, the food-related business posted higher revenue and profit, with revenue of ¥5.375 billion, up 4.5%, and segment profit of ¥283 million, up 25.5%. Although the food-related business partly offset lower profit in the domestic and overseas food businesses, consolidated operating profit remained at just ¥22 million.

The company’s FY2027 full-year forecasts are revenue of ¥116.873 billion, operating profit of ¥5.208 billion, net income attributable to owners of the parent of ¥2.559 billion, and a dividend of ¥23 per share. These forecasts were unchanged as of Q1. Revenue progress against the full-year forecast was 20.7%, but operating profit progress was only 0.4%, indicating limited earnings progress at this stage. Food demand is weighted toward Q3, so the low Q1 profit alone does not establish that the full-year target will be missed. However, the extent to which operating income recovers in H1 will be the point at which the validity of the unchanged forecast is tested.