Reached 96% of the first-half operating profit target in Q1, but a gap remains versus sales progress

Revenue in FY2027/3 Q1 was ¥5,620 million, operating profit was ¥289 million, ordinary profit was ¥274 million, and net income attributable to owners of the parent was ¥174 million. Revenue increased 12.7% year on year, while operating profit rose 346.3%, lifting the operating margin from approximately 1.3% in the same quarter of the previous year to approximately 5.1%, a 3.9-percentage-point improvement. The improvement in operating profit significantly exceeded the rate of sales growth, indicating that the effects of process improvements, higher production efficiency, and cost reductions were reflected in the Q1 margin.

The H1 plan for FY2027/3, presented when the company reported results for FY2026/3, called for revenue of ¥10,700 million, operating profit of ¥300 million, ordinary profit of ¥330 million, and net income of ¥220 million. Compared with this plan, Q1 progress was 52.5% for revenue, 96.3% for operating profit, 83.0% for ordinary profit, and 79.1% for net income. The H1 plan implies an operating margin of approximately 2.8%, compared with approximately 5.1% in Q1, so operating performance is substantially ahead of plan when viewed solely from the profit perspective.

The full-year plan calls for revenue of ¥22,000 million, operating profit of ¥850 million, ordinary profit of ¥900 million, and net income of ¥600 million. This represents targets of approximately 0.6% revenue growth and approximately 17.6% operating profit growth from FY2026 results. Although the Q1 earnings summary states that the forecast announced in May remains unchanged, it does not repeat the numerical targets or disclose a quarterly sales and profit bridge. In H1, it will be necessary to confirm not only whether operating profit exceeds plan, but also whether revenue reaches ¥10,700 million, whether the margin improvement is temporary, and whether the full-year operating profit forecast of ¥850 million is maintained.