Will double-digit growth in Q1 continue through the first half?

In the first quarter of the fiscal year ending February 2027, consolidated revenue was 18,583,195 thousand yen, operating profit was 2,003,091 thousand yen, ordinary profit was 2,232,234 thousand yen, and net profit attributable to owners of the parent was 1,550,813 thousand yen. These figures represented year-on-year increases of 11.7%, 18.5%, 17.4% and 11.6%, respectively, with operating profit growth exceeding revenue growth by 6.8 percentage points. At least as of Q1, higher revenue is flowing through to profit.

The company attributed the increase in revenue to solid sales to restaurant chains and food supermarkets, as well as the booking of large-scale projects in the large-scale bakery equipment segment. By segment, revenue and segment profit in the commercial kitchen equipment manufacturing and sales business were 16,832,110 thousand yen and 1,885,757 thousand yen, respectively, while the corresponding figures for the large-scale bakery equipment manufacturing and sales business were 1,631,293 thousand yen and 267,502 thousand yen. The two businesses account for a substantial portion of consolidated operating profit, making full-year performance susceptible to the timing of revenue and profit recognition in these segments.

The full-year forecasts are revenue of 67,000,000 thousand yen, operating profit of 6,700,000 thousand yen, ordinary profit of 7,400,000 thousand yen and net profit of 5,300,000 thousand yen. As of the first-quarter results, these forecasts were unchanged from the previous release. Q1 progress against the full-year forecasts was approximately 27.7% for revenue, 29.9% for operating profit and 29.3% for net profit. The simple benchmarks for reaching 50% in the first half are revenue of 33,500,000 thousand yen, operating profit of 3,350,000 thousand yen and net profit of 2,650,000 thousand yen.

On the other hand, the explanation for the Q1 changes is mainly qualitative, citing solid sales and the booking of large-scale projects. No project-level revenue, sales volume, order backlog or quantified absorption of higher costs was disclosed. Accordingly, in FY2027-H1 it will be important to monitor not only consolidated revenue and operating profit progress, but also whether the Q1 segment trends of 5.3% year-on-year growth in commercial kitchen equipment and positive year-on-year growth in large-scale bakery equipment are maintained.