FY2027-Q1 is broadly on track against the full-year plan, with potential for an upward revision to be assessed at the first-half results

FY2027-Q1 revenue was ¥6,729 million, up 13.1% year on year, and operating profit was ¥855 million, up 48.4%. With full-year forecasts of ¥27,000 million in revenue and ¥3,300 million in operating profit, the simple progress rates are 24.9% for revenue and 25.9% for operating profit. At least on a standalone first-quarter basis, both revenue and operating profit had reached around one-quarter of the full-year plan.

On the profit side, ordinary profit of ¥915 million and profit attributable to owners of the parent of ¥532 million also exceeded the year-earlier figures. Operating profit growth outpaced revenue growth, while the operating margin rose 3.0 percentage points from 9.7% in the year-earlier quarter to 12.7%, confirming progress in profitability as well as simple revenue growth. However, the supplementary materials do not disclose progress against the first-half plan or the company's own assessment, such as whether results are above or below plan.

As of the first quarter, the full-year forecasts remained unchanged at ¥27,000 million in revenue, ¥3,300 million in operating profit, ¥3,500 million in ordinary profit and ¥2,200 million in net profit. At the first-half results, it will be important to assess not only first-half revenue and operating profit, but also how the company views the ¥20,271 million in revenue and ¥2,445 million in operating profit required in the second half. In particular, it is important to determine whether the Q1 operating margin of 12.7% is assumed to continue into the second half and how fully increases in raw material prices, personnel expenses and advertising expenses are reflected in the plan.

The company did not prepare a quarterly cash flow statement in its earnings report, so operating and investing cash flow at Q1 cannot be confirmed. At the first-half results, whether the company additionally discloses cash generated from operating activities, capital expenditures and changes in cash balances will also help assess the quality of the full-year plan.