Focus on first-half progress against the full-year plan and whether second-quarter performance can be replicated

Revenue in the first quarter of the fiscal year ending March 2027 was ¥361.763 billion, and operating profit was ¥64.731 billion. Progress against the full-year revenue forecast of ¥1,380.0 billion was 26.2%, while progress against the ¥215.0 billion operating profit forecast was 30.1%, putting operating profit approximately 3.9 percentage points ahead of revenue. Core operating profit was also ¥54.6 billion, reaching 26.3% of the full-year core operating profit forecast of ¥208.0 billion.

Because the company has not disclosed a first-half plan, revenue of ¥690.0 billion and operating profit of ¥107.5 billion, representing 50% of the full-year forecasts, are only benchmarks based on even progress through the year. To reach these benchmarks, after deducting first-quarter results, standalone second-quarter revenue of ¥328.2 billion and operating profit of ¥42.8 billion would be required. On the same basis, the benchmark for core operating profit is ¥104.0 billion for the first half and ¥49.4 billion for the standalone second quarter, although the company has not explained seasonality or the level required for the remainder of the year.

As of the first quarter, there had been no revision to the full-year earnings forecast, which remained at revenue of ¥1,380.0 billion and operating profit of ¥215.0 billion. At the next results announcement, both first-half cumulative results and standalone second-quarter results should be reviewed, along with the gap between core operating profit and operating profit, profit composition by segment, and whether the full-year forecast has been revised, rather than relying solely on simple progress rates. Falling below the 50% benchmark would not immediately mean that the plan will be missed, but it will be important to see whether the company provides its first assessment of first-half performance and the amounts required for the remainder of the year.