Full-year guidance unchanged, but first-quarter operating profit is well behind plan and requires a recovery in the first half

Revenue for the first quarter of the fiscal year ending March 2027 was ¥4,853 million, down 21.3% year on year, while operating profit was ¥59 million, down 89.2%. Ordinary profit was ¥103 million, and net loss attributable to owners of the parent was ¥64 million, with final profit turning from a year-earlier profit to a loss. Meanwhile, full-year guidance remains unchanged at revenue of ¥22,180 million, operating profit of ¥840 million, ordinary profit of ¥510 million, and profit attributable to owners of the parent of ¥250 million.

The first-quarter revenue progress rate was approximately 21.9%, calculated as ¥4,853 million divided by ¥22,180 million, about 3.1 percentage points below the simple 25% elapsed-year benchmark. The operating profit progress rate was only approximately 7.0%, calculated as ¥59 million divided by ¥840 million, indicating a larger shortfall against plan than revenue. Ordinary profit was approximately 20.2% of the full-year forecast, while progress for net profit was negative because first-quarter net profit was a loss of ¥64 million.

Deducting first-quarter results from the full-year forecasts leaves required revenue of ¥17,327 million, operating profit of ¥781 million, ordinary profit of ¥407 million, and profit attributable to owners of the parent of ¥314 million for the remaining three quarters. On a simple average basis, Q2-Q4 would need to generate approximately ¥5,776 million in revenue and ¥260 million in operating profit per quarter, requiring a clear acceleration from first-quarter revenue of ¥4,853 million and operating profit of ¥59 million.

The earnings presentation does not provide the company’s assessment of progress against full-year guidance or the revenue and profit levels required for the remainder of the year. At H1, we will assess what percentage of the full-year revenue forecast cumulative revenue has reached, how much operating profit has accumulated against the ¥840 million target, and whether the company provides specific explanations for maintaining its full-year guidance and for its second-half assumptions.