In Q1, profit recovery is lagging sales progress, making it a key question whether the upfront investment can be absorbed in the first half.

In Q1, covering 1 April to 30 June 2026, net sales were ¥7,189 million, up 2.0% year on year, while operating profit was ¥953 million, down 11.4%, and ordinary profit was ¥967 million, down 10.9%. Net sales increased by ¥143 million from the prior-year quarter, whereas operating profit fell by ¥122 million, indicating that higher sales have not translated directly into profit growth.

Progress against the full-year forecast was 23.1% for net sales, calculated as ¥7,189 million ÷ ¥31,119 million, and 21.9% for operating profit, calculated as ¥953 million ÷ ¥4,352 million. On a simple arithmetic basis, ¥23,930 million of the full-year net sales forecast and ¥3,399 million of the operating profit forecast remain. However, the company has not disclosed first-half and second-half forecasts or quarterly seasonality, so these remaining amounts cannot be treated as the second-half plan as they stand. At the next results announcement, it will be necessary to distinguish first-half results from the levels of sales and profit required in the second half to maintain the full-year forecast.

For comparison, FY2026-H1 net sales were ¥15,784 million and operating profit was ¥2,718 million. In FY2027-H1, whether operating profit exceeds ¥2,718 million, in addition to net sales exceeding this level, will be a direct benchmark for assessing the likelihood of achieving full-year operating profit of ¥4,352 million. As of Q1, sales growth was limited to 2.0%, while the full-year net sales forecast assumes 4.7% growth over the prior-year result, so additional explanation is needed regarding first-half sales volume and product mix or second-half growth.

For its alcoholic beverages and soft drinks business, the company cited higher sales from product development and stronger sales capabilities, alongside lower profit due to the burden of upfront investment to strengthen the brands of its core products. However, the disclosure does not break down how many millions of yen the brand-building investment reduced operating profit by, whether the investment was concentrated in Q1, or whether it will continue after the first half. Q1 operating margin was approximately 13.3% on a simple calculation, versus approximately 14.0% based on the full-year forecast. At the first-half results announcement, it will be necessary to check whether operating margin recovers from the 13% range and whether the amount and effects of the upfront investment are presented quantitatively.