FY2027 ending June is planned to deliver higher revenue and operating profit, but the first quarter will show whether the recovery is getting underway.

For FY2026 ending June, revenue was ¥12,223 million and operating profit was ¥63 million, representing year-on-year declines of 2.6% and 65.9%, respectively. For FY2027 ending June, the company forecasts revenue of ¥13,000 million, operating profit of ¥80 million, ordinary profit of ¥420 million and net income attributable to owners of the parent of ¥280 million. Revenue is planned to increase 6.4% year on year, and operating profit is planned to rise by ¥17 million, but the operating profit target remains well below the ¥185 million recorded in FY2025.

Cumulative quarterly results for FY2026 show revenue of ¥2,742 million and an operating loss of ¥13 million in the first quarter, improving to revenue of ¥6,178 million and operating profit of ¥93 million for the first half, and revenue of ¥9,364 million and operating profit of ¥168 million for the first three quarters. Accordingly, next time it will be important to look beyond year-on-year changes and determine whether the company can turn the FY2026-Q1 loss into an operating profit in FY2027-Q1 and establish conditions for that improvement to continue from the second quarter onward.

Dividing the full-year forecast mechanically by four gives reference values of ¥3,250 million in revenue and ¥20 million in operating profit for FY2027-Q1. However, these are simple benchmarks that do not adjust for seasonality and are not quarterly targets presented by the company. At the earnings release, progress in operating profit as well as revenue, year-on-year changes, and whether the full-year forecast is maintained or revised should be reviewed together.

The operating profit forecast for FY2027 ending June is only ¥80 million, equivalent to an operating margin of approximately 0.62% on forecast revenue. Thus, even if revenue reaches ¥3,250 million, the contribution to the profit plan could be limited if low-margin projects and cost increases continue. At the next earnings release, we will track whether the recovery in packaging revenue, price pass-through and production-efficiency improvements are reflected in first-quarter results, alongside company-wide operating profit.