FY2027-H1 generated approximately 70% of operating profit in Q1, making Q2 earnings repeatability the focus

Revenue for the first quarter of the fiscal year ending March 2027 was ¥11,637 million, operating profit was ¥975 million, ordinary profit was ¥1,011 million, and quarterly net income attributable to owners of the parent was ¥679 million. Year on year, revenue increased 38.0%, operating profit 522.2%, ordinary profit 475.6%, and net income 469.1%, with profit growth substantially outpacing revenue growth.

The cumulative second-quarter forecast presented by the company after Q1 is ¥20,690 million in revenue, ¥1,400 million in operating profit, ¥1,440 million in ordinary profit, and ¥890 million in net income. Q1 progress was 56.2% for revenue, 69.6% for operating profit, 70.2% for ordinary profit, and 76.3% for net income. On a simple remaining-balance calculation, Q2 would need to generate ¥9,053 million in revenue, ¥425 million in operating profit, ¥429 million in ordinary profit, and ¥211 million in net income.

The full-year forecasts are ¥38,470 million in revenue, ¥1,960 million in operating profit, ¥2,030 million in ordinary profit, and ¥1,280 million in net income. The Q1 results included revisions to both the full-year and H1 forecasts, but the pre-revision figures and the size of the revisions cannot be confirmed. It is therefore difficult to determine whether the substantial increase in Q1 profit reflects upward revisions to the company’s plan or an early reflection of results exceeding the plan.

The company cited new demand development and inventory purchase-sale differences as factors behind the increase in Q1 profit, but did not disclose the monetary contribution of the inventory purchase-sale differences. Accordingly, in Q2 it will be important to confirm not only whether the remaining ¥425 million in operating profit is achieved, but also whether profit can be secured through improvements in selling prices, volumes, and raw-material procurement excluding inventory effects. In the next results release, the key points will be the H1 results, whether the full-year forecast is maintained or revised again, and a monetary breakdown of the profit drivers.