Operating profit reached 77.4% of the full-year forecast in 1Q; focus turns to whether this can be sustained through the first half

In 1Q, from April to June 2026, revenue rose 5.3% year on year to ¥1,813 million, operating profit increased 11.5% to ¥103 million, ordinary profit rose 11.5% to ¥107 million, and net profit for the quarter increased 9.2% to ¥73 million. Revenue and profit both increased, while profit growth outpaced revenue growth.

The full-year forecasts are ¥6,150 million in revenue, ¥133 million in operating profit, ¥145 million in ordinary profit and ¥85 million in net profit. Progress at the 1Q stage was therefore 29.5%, 77.4%, 73.8% and 85.9%, respectively. If half of the full-year plan is used as a simple benchmark for the first half, cumulative 2Q revenue of ¥3,075 million is one point to watch. Operating profit, however, has already reached ¥103 million, most of the full-year plan, leaving only ¥30 million required for the remainder of the year. Net profit would reach the full-year forecast with a further ¥12 million.

These figures indicate considerable headroom against the profit targets, while also showing that revenue and profit are progressing at very different rates. The company cited revisions to selling prices and other terms, product development and renewals, consignment sales including prescription drug distribution, expansion of store private-label products, cross-selling, and sales of summer and heatstroke-prevention products as factors behind the 1Q results. It has not disclosed the contribution or volume impact of each factor. In the water sales business, demand for the core 12-liter bottles remained solid, while sales of water-related products fell below the year-earlier level. It therefore cannot be confirmed that the company-wide lead in profit performance was evenly generated across the businesses.

In the first half of the fiscal year ending March 2027, in addition to whether cumulative 2Q revenue exceeds ¥3,075 million, it will be necessary to determine whether operating profit can remain at the 1Q level of ¥103 million or whether the remaining ¥30 million can be reliably added. The company did not prepare a quarterly cash flow statement for 1Q, and there is still no information to support profit progress with operating cash flow. At the next results announcement, the company will need to be checked for any revision to its forecasts, the profit contribution of each factor, and cumulative first-half revenue and profit.