Focus will be on the likelihood of achieving the FY2027 plan for double-digit revenue growth and higher operating profit

FY2026 revenue was ¥566.865 billion, up 13.0% year on year, while operating profit was ¥27.096 billion, up 1.9%. The operating margin fell from 5.3% in the previous fiscal year to 4.8%, making it difficult to say that the increase in revenue translated directly into profit growth. The company’s FY2027 plan calls for revenue of ¥640 billion, operating profit of ¥32 billion, ordinary profit of ¥30.8 billion, and net income attributable to owners of the parent of ¥19 billion, with operating profit expected to increase 18.1% year on year. The planned operating margin is approximately 5.0%, requiring a recovery of approximately 0.2 percentage points from FY2026’s 4.8%.

The comparable FY2026-Q1 figures for FY2027-Q1 were revenue of ¥139.735 billion, operating profit of ¥7.263 billion, ordinary profit of ¥7.284 billion, and net income attributable to owners of the parent of ¥5.033 billion. In the next results release, it will be necessary to assess not only the year-on-year revenue growth rate but also the extent to which operating profit exceeds the ¥7.263 billion recorded in the same quarter of the prior year, and how the expansion of food, fresh produce and dispensing pharmacy operations was reflected in the operating margin through gross profit and SG&A expenses. Since the company does not disclose quarterly operating profit forecasts, investors will have to assess progress based on the combination of Q1 results and the full-year plan.

Of particular importance is the fact that the drivers of FY2026 revenue growth were divided among several initiatives, including new store openings, acquisitions of food supermarkets and a higher rate of stores with dispensing pharmacies. These initiatives can increase revenue while also raising store-opening costs, personnel expenses, logistics costs and depreciation. Depreciation was ¥14.472 billion in FY2026, and in FY2027-Q1 it will be necessary to confirm whether the contribution from newly opened and acquired stores is absorbing not only revenue but also depreciation and personnel expenses. Even if the full-year forecast is maintained, the disclosures do not yet sufficiently break down whether the assumptions are based on improvements at existing stores or the consolidation effect of acquired stores.