Q1 broadly tracks the full-year plan, but H1 earnings progress will be checked in FY2027-H1

Sales in Q1 of the fiscal year ending March 2027 were ¥5,382 million and operating profit was ¥180 million, up 3.4% and 6.9%, respectively, from the same quarter of the previous year. Progress against the full-year forecasts of sales of ¥22,800 million and operating profit of ¥700 million was approximately 23.6% for sales and 25.7% for operating profit. Operating profit progress was approximately 2.1 percentage points ahead of sales progress, so at least as of Q1, profit was not lagging sales.

However, the information provided does not disclose first-half seasonality or the monthly earnings structure. Accordingly, the simple 50% benchmarks of sales of ¥11,400 million and operating profit of ¥350 million are mechanical reference points for measuring the distance to the plan at the next results announcement, not the company's seasonally adjusted forecasts. Rather than judging full-year achievement based solely on Q1 progress, it is necessary to confirm how much sales and operating profit accumulated in Q2 alone.

The full-year company forecasts are sales of ¥22,800 million, operating profit of ¥700 million, ordinary profit of ¥750 million and net profit of ¥370 million, representing increases of 1.3%, 7.9%, 6.5% and 3.7%, respectively, from the previous year's actual results. No revisions to the earnings forecasts were made in the Q1 results, and both sales and operating profit increased modestly. Next time, in addition to checking whether the company can secure 50% of operating profit in the cumulative first half, we will check whether the operating profit required in the second half can be kept within ¥350 million.

Q1 also provided sales and profit for four categories: Yellow Hat, TSUTAYA, Up Garage and Other. However, cumulative first-half profit by segment and a factor-based breakdown of amounts such as sales from vehicle inspection and other services have not yet been confirmed. In FY2027-H1, it will be important to see whether the contribution of each business to first-half sales of ¥11,400 million and operating profit of ¥350 million is disclosed, in addition to whether the full-year forecasts are maintained or revised.