Determine whether the strong operating profit progress seen in Q1 continued into FY2027 H1

The reporting period for Q1 of FY2027, the fiscal year ending February 2027, ran from 1 March 2026 to 31 May 2026. Revenue was ¥3,159 million, up 9.2% year on year, and operating profit was ¥261 million, up 39.7%. With full-year forecasts of ¥12,000 million in revenue and ¥600 million in operating profit, Q1 progress was 26.3% and 43.5%, respectively. Compared with simple time-based progress of 25.0% after 3 months, revenue was broadly in line with the plan, while operating profit was clearly ahead.

This difference means that profit grew faster than revenue. The Q1 operating margin was 8.3%, an improvement of 1.8 percentage points from approximately 6.5% in the year-earlier quarter. However, the food-service and pub business experiences monthly and seasonal fluctuations in customer traffic, and the company has not disclosed a basis for extrapolating Q1's margin directly to H1 or the full year. In H1, ¥6,000 million in revenue and ¥300 million in operating profit should be used as mechanical benchmarks for 50% progress, while the company's assessment based on actual seasonality should also be reviewed.

The Q1 supplementary materials presented the full-year earnings forecasts, but did not show progress against those forecasts, management's self-assessment against the plan, or the revenue and profit levels required for the remainder of the period. The income statement also focused mainly on cumulative figures, so whether standalone second-quarter results will be disclosed is another point to monitor. In the H1 results, it will be important not only to show cumulative revenue and operating profit, but also standalone Q2 changes, the reasons for maintaining the full-year forecasts of ¥12,000 million and ¥600 million, and the specific levels required in the second half.