1Q sales progress remains in the 10% range against the FY2027 full-year plan, making a recovery in H1 necessary

In 1Q, from April through June 2026, sales were approximately ¥470 million and the operating loss was approximately ¥135 million. In the same period of the previous year, sales were approximately ¥833 million and operating profit was approximately ¥53 million, so sales declined approximately 43.6% year on year and the operating result moved from a profit to a loss. In contrast, the full-year forecasts for the fiscal year ending March 2027 are sales of ¥4.50 billion and operating profit of ¥450 million, and the company has not changed its forecasts at this point.

1Q sales of ¥470 million represented approximately 10.4% of the ¥4.50 billion full-year sales forecast. On a simple calculation, approximately ¥4.03 billion in sales will therefore be needed from 2Q onward, or an average of approximately ¥1.34 billion over the remaining 3 quarters. This is approximately 2.9 times 1Q sales. As 1Q recorded an operating loss of approximately ¥135 million, achieving the full-year operating profit forecast of ¥450 million will require approximately ¥585 million in operating profit from 2Q onward, or an average of approximately ¥195 million over the remaining 3 quarters.

The simple half-year benchmark for FY2027-H1 is sales of ¥2.25 billion and operating profit of ¥225 million. However, the company has not provided standalone H1 earnings forecasts or quarterly seasonality assumptions, so ¥2.25 billion and ¥225 million are reference points for assessing progress, not management targets. Whether the operating result turns profitable in H1 and whether the build-up in sales clearly accelerates from 2Q onward will be the first key test of the achievability of the full-year plan.

At the next earnings announcement, it will be important to review cumulative H1 sales and operating profit, as well as the updated basis for maintaining the full-year forecasts of ¥4.50 billion and ¥450 million. In particular, it will be necessary to confirm whether the 1Q operating loss can be eliminated in 2Q, whether the operating margin returns to positive territory by the end of H1, and whether the full-year forecasts are revised. If H1 results fall substantially below the simple half-year benchmarks, it will be necessary to reassess not only whether the full-year forecasts can remain unchanged, but also whether the sales and profit levels required for the remainder of the year are realistic.