First-quarter revenue was in line with plan, while operating profit was slightly behind.

In the first quarter of the fiscal year ending March 2027, consolidated revenue was ¥8,762 million, operating profit was ¥451 million, ordinary profit was ¥509 million and net income attributable to owners of the parent was ¥285 million. Progress against the full-year forecasts was 25.0%, 23.7%, 25.5% and 23.8%, respectively. Revenue and ordinary profit were around one-quarter of the full-year forecasts, while operating profit and net income were slightly below that level.

Year on year, revenue increased 3.5%, operating profit increased 2.3%, ordinary profit increased 0.3% and net income increased 1.1%. Since revenue growth exceeded operating profit growth, the cumulative first-half results will need to be reviewed to determine the effects of the business mix, pricing and costs, rather than assuming simple volume growth alone. Factors behind the first-quarter revenue and profit increases included higher shipment volumes in the gas-related business, higher liquefied petroleum gas selling prices, demand from major food products customers and large machinery orders in the equipment and materials business.

The full-year plan calls for revenue of ¥35,000 million, operating profit of ¥1,900 million, ordinary profit of ¥2,000 million and net income of ¥1,200 million. The operating profit plan is unchanged from the previous fiscal year’s actual result. As of the first quarter, there was no revision to the earnings forecast. Revenue progress was broadly in line with the 25% calendar-year benchmark, while operating profit was only at 23.7%. Assuming the first half progresses evenly without seasonality, the benchmarks are revenue of ¥17,500 million, operating profit of ¥950 million, ordinary profit of ¥1,000 million and net income of ¥600 million.

At the next results announcement, we will want to assess the extent to which cumulative first-half results through the end of September exceed these simple even-progress benchmarks, as well as whether operating profit in the second quarter alone can remain positive year on year. The company has not provided quantitative first-half earnings forecasts, so the 50% threshold is a progress-monitoring benchmark, not a company target. Even if the full-year forecasts are maintained, it will be important to determine whether revenue growth is translating into profit and whether any improvement or deterioration in the operating margin is explained.