Can the first-quarter upside be repeated in the first half?

First-quarter revenue was ¥41,157 million, up 1.5% year on year, operating profit was ¥4,991 million, up 17.6%, and ordinary profit was ¥5,129 million, up 12.2%. Net income attributable to owners of the parent, however, was ¥3,137 million, down 10.9%, indicating that improved gross margins and cost controls, rather than top-line growth, drove the increase in profit. Progress against the revised full-year forecasts was approximately 24.4% for revenue and 25.9% for operating profit.

The company raised its FY2027 full-year forecasts, citing first-quarter results that were slightly ahead of expectations: revenue from ¥168,700 million to ¥169,000 million, operating profit from ¥18,500 million to ¥19,300 million, ordinary profit from ¥18,900 million to ¥19,700 million, and net income from ¥12,200 million to ¥12,600 million. The first-half ordinary profit forecast was also raised from the previous ¥9,000 million to ¥9,800 million, making this ¥9,800 million the clearest benchmark for the interim results.

The previous-year FY2026-H1 results were revenue of ¥80,276 million, operating profit of ¥8,430 million, ordinary profit of ¥8,606 million, and net income of ¥6,117 million. Accordingly, in FY2027-H1, we will look to see whether at least revenue and operating profit exceed the previous-year period, and whether the increase in operating profit translates into ordinary profit of ¥9,800 million. In the evaluated disclosures available at present, the revised first-half forecasts for revenue and operating profit have not been presented as clearly defined figures to the same extent as the ordinary profit forecast.

In the next results announcement, it will be necessary to determine whether SG&A expenses again came in below plan in the July–September quarter, following the April–June quarter, or whether the variance reflected first-quarter-specific expense timing. In addition to whether the full-year forecasts are revised again or left unchanged, an important point will be how specifically the company discloses first-half results and the revenue and operating profit required in the second half.