Full-year forecast raised despite lower revenue and profit; next results will test execution against the plan

Consolidated revenue for the interim period of the fiscal year ending December 2026 was ¥6,787 million, operating profit was ¥178 million, ordinary profit was ¥178 million, and interim net profit attributable to owners of the parent was ¥177 million. Year on year, revenue fell 7.3%, operating profit fell 28.8%, ordinary profit fell 29.6%, and interim net profit fell 15.0%, with the decline in profit exceeding the decline in revenue.

The full-year forecasts are revenue of ¥12,000 million, operating profit of ¥270 million, ordinary profit of ¥265 million, and net profit attributable to owners of the parent of ¥240 million. As the forecasts as of the first quarter were revenue of ¥11,066 million and operating profit of ¥129 million, the forecasts after the earnings revision on 28 July represent increases of ¥934 million in revenue and ¥141 million in operating profit. Interim-period progress was approximately 56.6% for revenue and approximately 66.2% for operating profit, apparently ahead of the annual plan.

However, simply meeting the full-year forecasts requires the company to generate approximately ¥5,213 million in revenue and approximately ¥92 million in operating profit after the interim period. The third-quarter cumulative results and whether the company leaves its forecasts unchanged will show whether the interim decline in revenue and profit was due to a temporary reaction to prior-year replacement demand and the impact of the system failure, and whether the assumption of a recovery in the second half remains intact. Although operating profit progress is high through the interim period, second-half promotional expenses, component prices, and recovery costs for the ASKUL Agent business could weigh on profit. The source of profit therefore needs to be reviewed as well as profit progress.