Can FY2027-H1 demonstrate that the full-year earnings growth plan is on track?

FY2027-Q1 consolidated revenue was ¥1,255.955 million, up 4.1% year on year, while operating profit was ¥165.147 million, down 2.1%. Ordinary profit was ¥188 million and net profit attributable to owners of the parent was ¥124 million, up 0.9% and 2.8% year on year, respectively. Revenue progress toward the full-year forecast of ¥6,000 million was 20.9%, but operating profit progress toward the ¥1,350 million forecast was 12.2%, indicating that profit is building more slowly than revenue.

Under a mechanical benchmark that allocates 50% of the full-year forecast to each of the first and second halves, FY2027-H1 would require revenue of ¥3,000 million, operating profit of ¥675 million, ordinary profit of ¥720 million and interim net profit attributable to owners of the parent of ¥490 million. Working back from the Q1 results, Q2 alone would need to generate approximately ¥1,744 million in revenue and approximately ¥510 million in operating profit. This calculation is a reference point that does not take seasonality into account, but if the company maintains its full-year plan at the H1 results, how it explains the revenue and profit levels required for the remainder of the year will be important.

The comparable FY2026-H1 results were revenue of ¥2,839 million, operating profit of ¥616 million, ordinary profit of ¥642 million and interim net profit of ¥441 million. Against the 50% first-half benchmark, FY2027-H1 would require year-on-year growth of approximately 5.7% in revenue, 9.6% in operating profit and 11.1% in interim net profit. FY2026-H1 revenue rose 3.3% year on year, while operating profit fell 3.8%. Accordingly, the full-year forecast for a 15.7% increase in operating profit will be difficult to support without confirming a recovery in margins, rather than revenue growth alone.

At the H1 results, we will want to assess overall demand trends by combining visitor numbers for the leisure business, Anitaッチ visitors and hotel guests, as well as segment margins. In particular, Anitaッチ and the hotel business were either down in revenue and profit or operating at a loss as of Q1. The focus of the next results will therefore be whether growth in the leisure business continues in Q2, whether earnings improvement in the two businesses is incorporated into the full-year operating profit forecast of ¥1,350 million, and whether the company maintains its full-year revenue forecast of ¥6,000 million and annual dividend of ¥20.