Q1 was ahead on revenue, but earnings progress was significantly delayed

Consolidated first-quarter revenue was ¥1,163 million, operating profit was ¥35 million, ordinary profit was ¥18 million, and net income attributable to owners of the parent was ¥2 million. Progress against the full-year forecast was 23.4% for revenue, 5.0% for operating profit, 2.8% for ordinary profit, and 0.6% for net income. Revenue was close to the 25% benchmark for an even quarterly run rate, while operating profit and below were clearly lagging revenue.

According to the earnings presentation materials, first-quarter year-on-year changes were a 21.0% increase in revenue, a 53.9% decrease in operating profit, a 75.8% decrease in ordinary profit, and a 94.8% decrease in net income. The operating margin also fell 4.9 percentage points, from 8.0% in the same quarter of the previous year to 3.1%. However, the earnings summary does not provide year-on-year comparisons because quarterly consolidated financial statements were not prepared for the same period of the previous year. In the next earnings release, earnings progress will need to be assessed after clarifying the comparison period and differences in the scope of consolidation.

The full-year forecasts are ¥4,975 million in revenue, ¥707 million in operating profit, ¥674 million in ordinary profit, and ¥434 million in net income, with no revision made as of Q1. If 50% of the full-year forecast is used simply as a benchmark for FY2027-H1, the corresponding figures are ¥2,487.5 million in revenue, ¥353.5 million in operating profit, ¥337 million in ordinary profit, and ¥217 million in net income. The company has stated that standalone revenue and operating profit at Medix are broadly in line with plan, but has not provided a specific assessment of progress against plan for the consolidated group as a whole. The next release should be reviewed for cumulative consolidated results and the revenue and profit amounts required in the second half.