Revenue growth has been confirmed, but achieving profitability in FY2027 H1 is the key inflection point

Revenue in FY2027 1Q was ¥6,253.724 million, up 20.1% from ¥5,205.926 million in the same period a year earlier. The operating loss narrowed by ¥60.223 million, from ¥673.607 million to ¥613.384 million, while the operating margin improved by 3.1 percentage points, from approximately -12.9% to approximately -9.8%. However, operating results remained in the red despite higher revenue, and the increase in revenue has not yet translated directly into profit.

The full-year forecasts are revenue of ¥41,200 million and operating profit of ¥2,400 million, leaving 1Q revenue progress at approximately 15.2%. This appears slow compared with the simple 25% quarterly time-elapsed rate, but the company has explained that revenue tends to be higher in the second and fourth quarters, particularly in March, than in the first and third quarters. Even taking this seasonality into account, a substantial improvement in profit after the first half will be needed to move from the 1Q operating loss of ¥613.384 million to full-year operating profit of ¥2,400 million.

In the first half of FY2026, revenue was ¥16,912 million and operating profit was ¥544 million. Based on the difference from full-year operating profit of ¥3,049 million, second-half operating profit was ¥2,505 million on a simple calculation. If the current fiscal year achieves its full-year operating profit forecast of ¥2,400 million, and first-half operating profit recovers to the prior-year level of ¥544 million, second-half operating profit would need to be ¥1,856 million. This is only a mechanical benchmark calculated from reported results, not a quarterly forecast provided by the company.

In the next first-half results, it will be important to check not only year-on-year revenue growth, but also whether cumulative first-half operating profit turned positive and exceeded the ¥544 million recorded in the prior-year first half. In addition, it will be important to see whether the company discloses, together with first-half segment results, whether the revenue growth reported in 1Q was driven by volume, pricing, or project execution in the commercial kitchen equipment manufacturing and sales business. Without disclosure of orders received and order backlog, it will be difficult to determine whether the revenue growth reflects temporary project recognition or an accumulation of orders.