FY2027: Earnings are ahead of schedule, with the focus on building sales in the second half.

First-quarter sales for the fiscal year ending March 2027 were ¥31,087 million, operating profit was ¥4,751 million, ordinary profit was ¥5,229 million, and net profit attributable to owners of the parent was ¥3,729 million. Year on year, sales rose 14.6%, operating profit 34.1%, ordinary profit 52.7%, and net profit 37.6%. The operating margin also increased from approximately 13.1% in the prior-year quarter to approximately 15.3%.

The full-year forecasts are sales of ¥116,000 million, operating profit of ¥11,500 million, ordinary profit of ¥11,000 million, and net profit of ¥7,400 million. First-quarter progress was 26.8% for sales, compared with 41.3% for operating profit, 47.5% for ordinary profit, and 50.4% for net profit, with earnings progress substantially ahead of sales. Prior-year results were sales of ¥111,822 million and operating profit of ¥10,878 million, implying forecast growth of 3.7% in sales and 5.7% in operating profit this fiscal year.

GGS's targets for the final year of its plan include sales of ¥120,000 million, operating profit of ¥10,800 million, overseas sales of ¥90,000 million, and an overseas sales ratio of 75%. The current company forecast is ¥700 million above the plan for operating profit but ¥4,000 million below it for sales. Profit-margin improvement is therefore ahead of plan, while sales remain below the scale target.

The agrochemicals business is seasonal, with demand concentrated in particular quarters. Previous disclosures stated that sales and profit are concentrated in the fourth quarter, from January to March. It is therefore not appropriate to simply extrapolate the first-quarter operating margin for the full year. In FY2027-H1, we will monitor whether sales of ¥47,710 million and operating profit of ¥4,687 million in the prior-year period can be exceeded, and whether the improvement in first-quarter profitability is being reproduced through prices, product mix, and cost improvements rather than volume growth alone. The first-quarter financial summary did not disclose sales by region or profit contributions by factor.