How much of the strong Q1 profit growth can be sustained in FY2027 H1?

In Q1 from April to June 2026, revenue was ¥34,994 million, operating profit was ¥4,279 million, ordinary profit was ¥4,489 million, and net profit attributable to owners of the parent was ¥2,995 million. Operating profit rose 14.5% year on year, outpacing the 5.4% increase in revenue. Progress against the full-year forecasts was approximately 24.1% for revenue and 24.9% for operating profit, broadly in line with a simple 25% quarterly allocation.

By contrast, FY2026 results were revenue of ¥138,616 million and operating profit of ¥17,078 million, while the company's FY2027 forecasts are revenue of ¥144,923 million and operating profit of ¥17,154 million. Growth from the previous year's actual results is limited to 4.5% for revenue and 0.4% for operating profit, meaning Q1 operating profit growth of 14.5% is well above the growth rate assumed in the full-year plan. Accordingly, even if operating profit reaches ¥8,577 million in H1, it will be necessary to distinguish whether this represents progress without a slowdown in the second half or reflects factors specific to Q1, such as individual projects and project profitability.

The company said that sales of food-service products, medical and scientific products, large food-processing machinery, large panel refrigeration equipment, and services increased in Q1 due to stronger demand. Sales of refrigerated and frozen showcases and small panel refrigeration equipment declined, affected by lower demand for new store openings and energy-saving renovations, as well as project postponements. Overall revenue growth alone does not show how much the stronger categories offset the weaker ones.

At the next earnings release, actual results will be assessed against simple 50% benchmarks of ¥72,462 million in H1 revenue and ¥8,577 million in H1 operating profit, to determine whether they are above or below those levels. It will also be necessary to check whether the full-year forecasts have been revised, the H1 operating margin, and the difference between standalone Q1 and Q2 profit. Since the full-year forecasts had not been revised as of Q1, even if they are maintained in H1, it will be important to explain whether margin improvement is continuing or whether higher costs and weaker demand are being factored into the second half.