FY2027-Q1 reached approximately one-quarter of the full-year plan, but the extent of the year-on-year slowdown will need to be assessed through the first half

Consolidated revenue for the first quarter of the fiscal year ending February 2027 was ¥3,191 million, operating profit was ¥104 million, ordinary profit was ¥89 million, and profit attributable to owners of the parent was ¥69 million. Year on year, revenue fell 22.6%, operating profit fell 48.8%, ordinary profit fell 48.6%, and net profit fell 57.7%, making this a difficult start on the face of it. The company cited persistently high raw material and energy prices, higher labor costs following the minimum wage revision, and rising construction costs as adverse factors.

The full-year forecasts, however, remain unchanged from the latest published figures at revenue of ¥13,300 million, operating profit of ¥450 million, ordinary profit of ¥370 million, and profit attributable to owners of the parent of ¥320 million. Calculated simply, first-quarter progress was 24.0% for revenue, 23.1% for operating profit, 24.1% for ordinary profit, and 21.6% for net profit, broadly in line with the 25% calendar-year benchmark. Net profit progress was nevertheless lower than operating profit progress, indicating that the recovery in downstream profit, including extraordinary gains and losses and the tax burden, is lagging.

The simple half-year benchmarks are revenue of ¥6,650 million, operating profit of ¥225 million, ordinary profit of ¥185 million, and net profit of ¥160 million. These are not the company's first-half targets, but merely comparison benchmarks obtained by mechanically dividing the full-year forecasts by two. The extent to which FY2027-H1 approaches these levels will nevertheless be useful in assessing the reliability of the full-year forecasts. The company did not prepare a consolidated cash flow statement for the first quarter, so support for earnings from operating cash flow and the cash balance cannot be assessed until the next results announcement.

Next time, the focus will be not only on a recovery in revenue but also on an improvement in the operating margin, the gap between ordinary profit and net profit, and whether the full-year forecasts are revised. As there were no changes in accounting policies, changes in accounting estimates, restatements, or material changes in the scope of consolidation in the first quarter, year-on-year comparisons for FY2027-H1 are expected to be verifiable without major accounting discontinuities.