Revenue and operating profit rose in Q1, but the full-year outlook remains unchanged

FY2027-Q1 revenue was ¥35,333 million, up 5.4% year on year, operating profit was ¥2,017 million, up 10.1%, ordinary profit was ¥1,786 million, up 21.8%, and profit attributable to owners of the parent was ¥1,020 million, up 72.3%. Operating profit grew faster than revenue, improving the operating margin by 0.2 percentage points, from approximately 5.5% in the year-earlier period to approximately 5.7% in the current period.

The company maintained its full-year forecasts for the fiscal year ending March 2027 at revenue of ¥145,000 million, operating profit of ¥9,500 million, ordinary profit of ¥9,000 million, and profit attributable to owners of the parent of ¥5,000 million. On a simple calculation, first-quarter progress was 24.4% for revenue, 21.2% for operating profit, and 20.4% for profit attributable to owners of the parent. However, the supplementary earnings presentation did not disclose numerical progress rates against the full-year forecasts and only provided a qualitative explanation that results were expected to be in line with the initial plan.

The company plans to increase full-year operating profit by ¥1,129 million, or 13.5%, from ¥8,371 million in FY2026 to ¥9,500 million in FY2027. The plan assumes continued profit growth following actual operating profit of ¥7,091 million in FY2025 and ¥8,371 million in FY2026, but the operating profit still required after Q1 is ¥7,483 million. Because seasonality in the year-earlier period and second-half concentration by segment have not been disclosed, whether FY2027-H1 can secure approximately ¥4.75 billion will be the first milestone for testing the company’s assessment that performance is proceeding as planned.

At the next earnings announcement, it will be important to check not only first-half revenue and operating profit, but also whether the company explicitly discloses progress rates against its full-year forecasts. In particular, for operating profit, key points will be whether improvements from pricing adjustments and profitability management continued into Q2, and whether the dividend plan of an interim dividend of ¥18 and year-end dividend of ¥18, for total annual dividends of ¥36, remains unchanged.