FY2027-H1, following the upward revision, is the next checkpoint after the sharp increase in Q1 profit

Q1 revenue was ¥49,926 million, up 5.6% from ¥47,276 million a year earlier. Operating profit was ¥3,776 million, up 79.0% from ¥2,109 million, and the operating margin rose from approximately 4.5% to approximately 7.6%. Profit growth outpaced revenue growth. On a simple calculation, operating profit had reached 37.4% of the full-year forecast of ¥10.1 billion, while revenue had reached 24.6% of the full-year forecast of ¥202.9 billion.

However, Q1 progress cannot be viewed as equivalent to full-year achievement. In FY2026, first-half revenue was ¥95,078 million and operating profit was ¥4,691 million. For FY2027-H1, assuming an even split between the two halves, revenue of ¥101,450 million and operating profit of ¥5,050 million represent key thresholds to monitor. After deducting Q1 results, standalone Q2 revenue of ¥51,524 million and operating profit of ¥1,274 million will be required.

In Q1, full-year guidance was revised from ¥201.5 billion to ¥202.9 billion for revenue, from ¥9.0 billion to ¥10.1 billion for operating profit, from ¥12.9 billion to ¥14.0 billion for ordinary profit, and from ¥9.8 billion to ¥10.6 billion for net profit. The company cited strong performance at Mister Donut, higher revenue from the door-to-door sales group, an improvement from the impact of front-loaded cost recognition for the case-equipped mop cleaners in the prior-year quarter, and lower company-wide expenses. In the next results announcement, it will be important to determine whether these factors continued into Q2 or were largely one-off rebound effects specific to Q1.

The company did not prepare a quarterly consolidated cash flow statement for Q1, and details of cash flow from operating activities, cash flow from investing activities and the cash balance were not disclosed. Accordingly, the first-half results need to be assessed for whether higher profit translated into operating cash flow, the extent of cash outflows from growth and capital investment, and whether full-year guidance remains unchanged.