FY2027-Q1 generates 45% of full-year operating profit forecast, with repeatability through H1 the focus

First-quarter net sales were ¥1,282 million, operating profit was ¥67 million, ordinary profit was ¥63 million, and profit attributable to owners of the parent was ¥61 million. Year on year, net sales increased 5.2%, while operating profit, ordinary profit, and net profit rose 127.8%, 123.0%, and 184.9%, respectively, with profit growth substantially outpacing sales growth. The operating margin also rose from approximately 2.4% in the same period last year to approximately 5.3%.

The full-year forecasts are ¥5,216 million in net sales, ¥150 million in operating profit, ¥142 million in ordinary profit, and ¥127 million in profit attributable to owners of the parent. First-quarter progress was 24.6% for net sales, 44.7% for operating profit, 44.4% for ordinary profit, and 48.0% for net profit, indicating that, on the profit side, nearly half of the annual plan has already been achieved. However, the full-year operating profit forecast is 6.0% below the ¥160 million recorded in the previous fiscal year, and the company identifies persistently high raw-material, utility, and personnel-related costs, as well as labor shortages, as risks.

The company attributed the profit increase to new product launches, sales promotions, the development and sale of seasonal limited-edition products, and marketing through its app and social media, in addition to strong head-office initiatives for the Mister Donut business. The first-quarter earnings release did not provide a quantitative breakdown by factor, however, so it remains unclear whether growth by brand will continue through H1 or how much rising costs will weigh on the operating margin.

The company did not prepare a quarterly consolidated cash flow statement for Q1 and did not disclose cash flow from operating activities. Accordingly, at the next earnings announcement, it will be important to check not only whether H1 operating profit exceeds ¥75 million, but also whether cash flow from operating activities exceeds the ¥60.046 million recorded in the same period last year and whether the buildup toward the ¥150 million full-year forecast is supported by cash generation.