H1 recovery in progress toward the full-year operating profit target is the key focus

FY2027 Q1 sales were ¥10,744 million, up 1.2% year on year, representing 23.9% of the full-year forecast of ¥45,000 million. Operating profit, however, was ¥288 million, down 27.2% year on year, representing only 15.6% of the full-year forecast of ¥1,850 million. Ordinary profit was ¥415 million, reaching 23.1% of the full-year forecast of ¥1,800 million, making operating profit the relatively weaker area.

In the prior-year FY2026 H1, sales were ¥21,411 million, operating profit was ¥809 million, ordinary profit was ¥829 million and interim net profit attributable to owners of the parent was ¥1,071 million. Whether FY2027 H1 exceeds these figures will be the direct benchmark for measuring year-on-year recovery. Dividing the full-year forecasts evenly between the two halves gives mechanical benchmarks of ¥22,500 million in sales, ¥925 million in operating profit, ¥900 million in ordinary profit and ¥625 million in net profit, but these are reference figures that do not reflect seasonality and were not disclosed by the company as H1 forecasts.

As of Q1, the full-year earnings forecasts had not been revised, and the company had not disclosed H1 forecasts, the profit required for the remaining period, or its own assessment of progress toward the full-year forecasts. In the H1 results, it will be necessary to assess not only whether operating profit exceeds the prior-year ¥809 million, but also whether the decline caused by food-related procurement costs and price competition is temporary and whether there is a basis for margin recovery in H2. This is a period to prioritize cumulative operating profit and margins rather than judging the full-year plan solely on sales progression.