Q1 revenue growth was driven largely by the consolidation of the food business and needs to be separated from growth in the 2 existing businesses

Consolidated revenue for the first quarter of the fiscal year ending March 2027 was ¥754.945 million, up ¥263.560 million from ¥491.385 million in the year-earlier quarter. Revenue growth was 53.6%, but these figures are after 青柳食品販売株式会社 became a subsidiary in July 2025 and the food business was added as a new reporting segment. Accordingly, the simple year-on-year comparison includes a difference in the scope of consolidation.

Quarterly segment revenue was ¥510.712 million from hot-spring bathing, ¥9.646 million from real estate and ¥234.586 million from food. Food accounted for approximately 31.1% of consolidated revenue, while the 2 existing businesses, hot-spring bathing and real estate combined, generated ¥520.358 million. Comparing the current combined revenue of the 2 existing businesses mechanically with consolidated revenue of ¥491.385 million in the year-earlier quarter indicates growth of approximately 5.9%, but this is not a pro forma or organic growth rate provided by the company. Because the food business was not included in consolidated revenue in the year-earlier quarter, this is only a reference calculation to account for the difference in the scope of consolidation.

Hot-spring bathing revenue rose 6.5% year on year, while real estate revenue fell 17.7%. Year-on-year food revenue has not been disclosed. In the first half of the fiscal year ending March 2027, the food business may also be partially consolidated in the year-earlier period, so the difference between the comparison periods may be smaller than in Q1, although the conditions may not be fully comparable. In the next results, we will check whether food revenue, revenue from the existing hot-spring bathing and real estate businesses, and year-on-year comparisons for each segment are presented separately, or whether the difference in the food consolidation period is explained.