FY2027 Q1 progress against the full-year plan is solid, but the first-half profit pace needs to be confirmed

FY2027 Q1 consolidated revenue was ¥28.682 billion, up 11.5% year on year, and operating profit was ¥1.307 billion, up 71.8%. Ordinary profit was ¥1.462 billion, up 117.1%, and profit attributable to owners of the parent was ¥996 million, up 153.4%. Operating profit grew faster than revenue, and the Q1 operating margin improved to approximately 4.56% from approximately 3.17% for FY2026.

The FY2027 full-year plan is revenue of ¥110.0 billion, operating profit of ¥3.5 billion, ordinary profit of ¥2.8 billion, profit attributable to owners of the parent of ¥2.65 billion and an annual dividend of ¥42. Progress against the full-year plan was approximately 26.1% for revenue, 37.3% for operating profit, 52.2% for ordinary profit and 37.6% for net profit. If the elapsed portion of the year is simply set at 25%, revenue is slightly ahead of plan and operating profit is ahead of schedule. Ordinary profit is affected by non-operating gains and losses, however, so it will be necessary to assess separately whether the same pace continues through the first half and beyond.

FY2026 revenue was ¥103.763 billion and operating profit was ¥3.283 billion. The next plan exceeds the previous year’s revenue by ¥6.237 billion, while planned operating profit increases by only ¥217 million. Since Q1 operating profit rose 71.8% year on year, the key issues are whether FY2027 H1 operating profit can exceed ¥1.75 billion and whether margins fall again because of higher raw-material and fuel costs.

The Q1 earnings explanation stated that strong sales in South America offset weak demand in Europe and North America overseas, while domestic sales volumes increased. The company also revised selling prices, passed costs through to product prices and reduced manufacturing costs. It has not disclosed the amounts of price pass-through or cost reductions, or actual sales volumes. In the next results announcement, we will check not only whether the full-year plan is unchanged, but also whether revenue progress reflects volumes or prices and whether the increase in operating profit represents a temporary price spread gain.