Can profit progress toward the full-year plan return to the pace of revenue in FY2027-H1?

Revenue for April to June 2027 was ¥2,725 million, operating income was ¥192 million, and net income attributable to owners of the parent was ¥130 million. The full-year forecasts are ¥11,300 million, ¥840 million and ¥680 million, respectively, putting Q1 progress at 24.1% for revenue, 22.9% for operating income and 19.1% for net income. Operating income progress was 1.2 percentage points behind revenue, while net income progress was 4.9 percentage points behind.

Compared with the same period of the prior year, revenue declined only 1.2%, from ¥2,757 million to ¥2,725 million, while operating income fell 24.1%, from ¥253 million to ¥192 million, and net income fell 34.0%, from ¥197 million to ¥130 million. FY2026-H1 results were revenue of ¥5,455 million, operating income of ¥455 million and net income of ¥354 million. These figures will provide the benchmark for measuring profit recovery in the six months through Q2.

The company has not revised its full-year earnings forecasts as of Q1, so there is currently no basis for concluding that the full-year plan will be missed. The simple 50% progress benchmarks are revenue of ¥5,650 million, operating income of ¥420 million and net income of ¥340 million. Falling below these levels would increase the amount of profit that must be generated in the second half. In particular, even if revenue meets plan, the scope for recovery in operating income will be limited if margins remain low.

In FY2027-H1, it will be necessary to assess not only whether revenue exceeds the ¥5,455 million recorded in the same period of the prior year, but also whether operating income can recover to the prior-year level of ¥455 million. Another key point for the next results announcement will be whether the company maintains its full-year forecasts of ¥11,300 million in revenue, ¥840 million in operating income and ¥680 million in net income, or revises them because of the delayed progress.