Assess the path to profitability in FY2027-H1 while losses persist despite revenue growth

Revenue for the first quarter of the fiscal year ending March 2027 was ¥989.6 million, up 29.2% from ¥766.0 million in the same period of the previous year. Operating income or loss improved from a ¥79.2 million loss in the same period of the previous year to a ¥27.0 million loss, but the operating loss remains. The ordinary loss was ¥27.6 million, and the quarterly net loss attributable to owners of the parent was ¥17.7 million, meaning that none of the various income levels had turned profitable.

The full-year forecasts are revenue of ¥4,376 million, operating profit of ¥60 million, ordinary profit of ¥59 million and net income attributable to owners of the parent of ¥34 million. First-quarter revenue progress was 22.6%, 2.4 percentage points below the simple quarterly run rate of 25%. However, the company has a seasonal pattern in which revenue and profit are concentrated from November through March, so it would be premature to judge the full-year plan unattainable based solely on the first quarter. The next results will provide an opportunity to assess whether revenue growth and loss reduction are continuing in the first half, which is normally a weaker period.

In FY2026-H1, revenue was ¥2,152.4 million and the operating loss was ¥87.6 million. In FY2027-H1, it will be important at a minimum to determine whether revenue exceeds the prior-year level and whether the operating loss narrows year on year. Since the first quarter saw the operating loss narrow by ¥52.2 million year on year, we will assess whether the same degree of improvement extends across the first half, or whether higher raw-material and personnel costs cause performance to deteriorate again in the second quarter.

There has been no revision to the full-year forecasts, and the company has not disclosed a quantitative bridge showing the operating profit required in the second half or the contribution to profit from its store, wholesale and renewable-energy businesses. In the next results, we will assess whether the company discloses H1 operating income or loss, the operating profit required in the second half, profit contributions from each segment, and the respective contributions, in millions of yen, from revenue growth, cost improvements and SG&A management to the reduction in the operating loss.