Q1 was broadly 25% on track against the full-year plan; H1 will test repeatability

First-quarter revenue was ¥3,643 million, operating profit was ¥784 million, ordinary profit was ¥778 million, and profit attributable to owners of the parent was ¥623 million. Year on year, revenue increased 25.0%, operating profit 24.6%, ordinary profit 20.6%, and net profit 61.0%, with each major stage of the income statement remaining profitable at a minimum.

The full-year forecast is revenue of ¥14,400 million, operating profit of ¥3,100 million, ordinary profit of ¥3,100 million, and profit attributable to owners of the parent of ¥3,100 million. Q1 progress was approximately 25.3% for revenue, 25.3% for operating profit, and 25.1% for ordinary profit, broadly in line with the 25% implied by dividing the year into four equal quarters. Net profit, however, was only approximately 20.1% of the full-year forecast, so the conversion of revenue into profit in the second half, including the tax burden and non-operating and extraordinary income and expenses, needs to be monitored.

The company attributed the increase in revenue to higher prescription online booking volumes, pharmaceutical distribution value, and system usage, as well as the consolidation impact of M&A. As of Q1, however, it had not disclosed the increase in revenue attributable to each factor or the profit contribution from existing businesses and acquired companies. The roughly 25% Q1 progress rate therefore should not be treated as a direct measure of the probability of achieving the full-year forecast without separating the apparent revenue growth from the expanded consolidation scope from growth in the existing businesses.

For the next update, covering H1, ¥7,200 million of revenue, ¥1,550 million of operating profit, and ¥1,550 million of ordinary profit will serve as key benchmarks against the plan. It will also be necessary to check whether the Q1 operating margin of 21.5% remains above 20% in H1, whether net profit approaches 50% of the full-year forecast, and whether the full-year forecasts of ¥14,400 million in revenue and ¥3,100 million in operating profit remain unchanged. No quarterly consolidated cash flow statement was prepared for Q1, so the relationship between profit progress and cash generation also remains unconfirmed.