Profit recovery in the Autobacs business is the next focus behind consolidated earnings growth

In FY2027-Q1, consolidated revenue was ¥3,356 million, up 4.6% year on year, operating profit was ¥150 million, up 22.5%, ordinary profit was ¥163 million, up 15.4%, and profit for the quarter attributable to owners of the parent was ¥116 million, up 32.2%. On the surface, revenue and earnings increased, but the sources of profit differ by segment, so it is too early to judge an improvement in the profitability of the core business based solely on growth in consolidated operating profit.

Revenue in the Autobacs business was ¥2,845,282 thousand, up 3.5% year on year, while segment profit was ¥201,624 thousand, down ¥46,670 thousand from ¥248,294 thousand in the same period of the previous year. The segment profit margin on revenue was approximately 7.1%, down from approximately 9.0% in the same period of the previous year. The key point to confirm next time will be whether personnel expenses, store operating costs, promotional expenses and equipment-related costs are pressuring profit, even as revenue from maintenance demand, consumables and vehicle inspections and servicing grows.

Meanwhile, revenue in the food-service business was ¥511,542 thousand, up 11.5% year on year, and segment profit was ¥44,652 thousand, compared with a loss of ¥33,157 thousand in the same period of the previous year. The ¥77,809 thousand improvement in food-service profit offset the decline in profit from the Autobacs business, meaning that the 22.5% increase in consolidated operating profit does not represent uniform improvement across the businesses. In FY2027-H1, it will be necessary to confirm whether segment profit in the Autobacs business is approaching the ¥248,294 thousand level recorded in the same period of the previous year, whether the food-service business can remain profitable after absorbing new-store costs, and whether the breakdown of the ¥96,276 thousand adjustment between segment profit and consolidated operating profit is disclosed.