Q1 operating profit ahead of the full-year plan

In Q1, covering April to June 2026, revenue was ¥9,697 million, operating profit was ¥564 million, ordinary profit was ¥566 million, and quarterly net profit attributable to owners of the parent was ¥286 million. These figures increased 12.7%, 27.5%, 21.9% and 10.7%, respectively, year on year, with all major profit items increasing.

The full-year forecasts remain unchanged at ¥39,000 million for revenue and ¥1,300 million for operating profit, putting Q1 progress at 24.9% for revenue and 43.4% for operating profit. Revenue was close to the 25% benchmark for an evenly distributed quarterly contribution, while operating profit was approximately 18.5 percentage points above it. Because the company has not disclosed a half-year plan, the simple 50% levels of the full-year forecasts, ¥19,500 million for revenue and ¥650 million for operating profit, must be used as a mechanical benchmark for the first half.

The Q1 operating margin was approximately 5.8%, improving by approximately 0.7 percentage points from approximately 5.1% in the same quarter of the previous year. The company cited the development and intensified sales of new products and sales at appropriate prices in wholesale, the opening of Joyful AK Kushiro in retail, improvements in customer satisfaction and gross margin, and the completion of condominium handovers in real estate. However, no monetary breakdown has been disclosed showing how much the store opening, new products, price revisions and gross-margin improvement each contributed to operating profit of ¥564 million.

At the next earnings announcement, we will assess the first-half cumulative revenue and operating profit, as well as whether the operating margin can remain in the 5% range. In particular, even if first-half profit progress remains strong, it will be necessary to review whether costs such as personnel expenses, logistics costs, raw-material prices and energy prices increased in Q2, together with profit margins by segment.