FY2027 1Q is slightly behind the pace required to meet the full-year plan, making the catch-up in H1 the key focus

In FY2027 1Q (1 April to 30 June 2026), consolidated revenue was ¥6,885 million, operating profit was ¥988 million, ordinary profit was ¥1,001 million, and net income attributable to owners of the parent was ¥687 million. The full-year forecasts are revenue of ¥29,700 million, operating profit of ¥4,700 million, and net income attributable to owners of the parent of ¥3,450 million, putting progress at the end of 1Q at 23.2%, 21.0%, and 19.9%, respectively. Compared with the simple 25% benchmark based on equal quarterly allocation, the shortfalls are relatively larger for operating profit, at 4.0 percentage points, and net income, at 5.1 percentage points.

By contrast, year on year, revenue increased by ¥256 million, or 3.9%, from ¥6,629 million in FY2026 1Q. Operating profit increased by ¥159 million, or 19.2%, from ¥829 million, while net income attributable to owners of the parent increased 15.5%, from ¥595 million to ¥687 million. Accordingly, the issue at this stage is not declining revenue or a move into the red, but the pace of progress against the full-year forecasts while securing year-on-year growth in both revenue and profit.

For the next FY2027 H1, mechanical benchmarks equivalent to 50% of the full-year forecasts are revenue of ¥14,850 million, operating profit of ¥2,350 million, and net income of ¥1,725 million. FY2026 H1 results were revenue of ¥13,621 million, operating profit of ¥1,984 million, and net income of ¥1,451 million. Achieving these benchmarks would therefore represent year-on-year growth of approximately 9.0% in revenue, 18.4% in operating profit, and 18.9% in net income. However, the company has not provided an outlook for quarterly seasonality or profit allocation, so falling short of 50% alone should not be treated as a failure to meet the plan. Year-on-year results and any revisions to the full-year forecasts should also be reviewed.

To achieve the full-year forecasts based on the 1Q results, the company needs to generate an additional ¥22,815 million in revenue and ¥3,712 million in operating profit over the remaining 3 quarters. This equates to average quarterly revenue of ¥7,605 million and operating profit of approximately ¥1,237 million, both above the 1Q results of ¥6,885 million and ¥988 million, respectively. At the next results announcement, the focus will be on 2Q standalone revenue and operating profit, whether the full-year forecasts are maintained or revised, and whether cumulative H1 results are on the required pace.