First-quarter progress is ahead on revenue against the full-year forecast

First-quarter revenue for the fiscal year ending March 2027 was ¥7,468 million and operating profit was ¥782 million, up 11.5% and 39.9%, respectively, year on year. Operating profit growth significantly outpaced revenue growth, highlighting improvement in profitability at the start of the fiscal year. However, the full-year forecast is ¥31,500 million in revenue and ¥3,800 million in operating profit, putting simple progress rates at just 23.7% for revenue and 20.6% for operating profit.

Against the 25% benchmark based on the assumption that quarterly performance is evenly distributed, revenue is broadly on plan, while operating profit is 4.4 percentage points below that level. First-quarter operating margin was approximately 10.5%, below the approximately 12.1% implied by the full-year forecast, leaving a numerical assumption that margins will rise toward the second half. The remaining full-year targets after the first quarter are ¥24,032 million in revenue and approximately ¥3,018 million in operating profit.

The first-quarter results stated that the forecast had been revised from the latest outlook previously announced, and the full-year forecast was updated to ¥31,500 million in revenue and ¥3,800 million in operating profit. However, the pre-revision forecast, revision amount and revision rate were not disclosed, so it is not possible to determine whether the latest forecast represents an upward revision or includes a change in other assumptions. In FY2027-H1, the reasons for any further revision will need to be assessed in terms of volume, pricing and costs, along with whether the forecast is revised again.

The next results will disclose cumulative figures for April through September 2026, making the simple six-month benchmarks of ¥15,750 million in revenue and ¥1,900 million in operating profit useful reference points. Seasonality cannot be ruled out, so these levels should not be used mechanically to judge whether the company has missed its targets. The focus should instead be on whether operating margin has improved from 10.5% in the first quarter and whether actual progress is being made toward the full-year target of 12.1%.