FY2027 1Q is progressing broadly in line with the full-year forecast

Revenue in FY2027 1Q was ¥27,182 million, operating profit was ¥8,588 million, and profit for the quarter attributable to owners of the parent was ¥6,241 million. Year on year, revenue increased 4.0%, operating profit increased 7.5%, and net profit increased 12.1%. Results therefore showed growth in both revenue and profit, rather than declines, with profit growth outpacing revenue growth.

The full-year forecasts are revenue of ¥123,000 million, operating profit of ¥38,500 million, and profit for the year attributable to owners of the parent of ¥27,500 million. First-quarter progress rates are therefore 22.1%, 22.3%, and 22.7%, respectively. A simple comparison of first-quarter results with 25% of the full-year forecast shows that results were slightly below that level. However, revenue was ¥26,140 million and operating profit was ¥7,985 million in FY2026 1Q, so the company secured year-on-year growth in both revenue and profit. At this point, results cannot be said to be running substantially below the full-year forecast.

At the next update, FY2027 H1, a mechanical benchmark of half the full-year forecast would imply revenue of ¥61,500 million, operating profit of ¥19,250 million, and profit for the year of ¥13,750 million. However, the company has explained that results have historically been weighted toward the second and third quarters because of the peak sales season for finished products and the impact of new model launches. Full-year achievement should therefore not be judged solely by a simple 50% first-half test. In addition to cumulative H1 results, it will be necessary to assess the demand assumptions for the second half, the foreign exchange assumptions, and whether the full-year forecast is revised.