Strong third-quarter profit progress, but seasonality must be factored into verification of the full-year target

Cumulative third-quarter revenue for the fiscal year ending August 2026 was ¥11,148 million and operating profit was ¥1,142 million. The full-year forecasts are ¥14,300 million in revenue and ¥450 million in operating profit, representing progress of approximately 78.0% for revenue and approximately 253.8% for operating profit. Revenue progress is only slightly ahead of plan, while operating profit has already substantially exceeded the full-year forecast, meaning that fourth-quarter results are assumed to deviate significantly from the usual progress pattern.

To meet the full-year forecast on a straightforward basis, the company would need to add ¥3,152 million in revenue in the fourth quarter, while operating profit would need to decline by ¥692 million from the cumulative third-quarter figure of ¥1,142 million to ¥450 million for the full year. In the fiscal year ended August 2025, cumulative third-quarter revenue was ¥10,774 million against full-year revenue of ¥13,591 million, implying fourth-quarter revenue of ¥2,817 million. The current plan therefore assumes fourth-quarter revenue ¥335 million, or approximately 11.9%, above the prior-year level. Operating profit was ¥402 million for the previous full year and ¥734 million cumulatively through the third quarter, implying a fourth-quarter operating loss of ¥332 million. The current plan's fourth-quarter operating loss of ¥692 million is approximately ¥360 million wider than the prior-year loss.

The company has explained that weddings are concentrated in the September-November first quarter and March-May third quarter, resulting in a concentration of revenue and profit. On a cumulative basis, first-quarter revenue and operating profit were ¥4,262 million and ¥878 million, respectively; second-quarter cumulative revenue and operating profit were ¥7,265 million and ¥752 million; and third-quarter cumulative revenue and operating profit were ¥11,148 million and ¥1,142 million. Standalone second-quarter operating profit was therefore an approximately ¥126 million loss based on the cumulative difference. It is necessary to confirm whether the fourth-quarter loss plan can be explained by seasonality alone, including the business mix and the temporary nature of expenses.

The company made no changes to its full-year forecast in the third-quarter results and maintained revenue at ¥14,300 million, operating profit at ¥450 million, ordinary profit at ¥430 million and net income at ¥350 million. Since the income statement summary does not disclose the operating margin, whether the strong profit progress reflects a temporary seasonal factor or whether profitability will be sustained for the full year must be assessed not only from final profit but also from the breakdown of standalone fourth-quarter revenue, cost of sales, SG&A expenses and operating profit.