Q1 profit ahead of plan; FY2027-H1 to test plan execution

In Q1, covering April to June 2026, revenue was ¥30,901 million, up 3.0% year on year, and operating profit was ¥3,503 million, up 3.4%. Progress against the FY2027 full-year forecasts was 24.0% for revenue, calculated as ¥30,901 million ÷ ¥129,000 million, and 28.7% for operating profit, calculated as ¥3,503 million ÷ ¥12,200 million. Assuming that 25% of the fiscal year had elapsed, revenue was broadly on plan, while operating profit was 3.7 percentage points ahead, indicating profit-led progress.

FY2026-H1, the relevant comparison period, recorded revenue of ¥58,982 million and operating profit of ¥6,143 million. If FY2027-H1 exceeds these levels, the company will have achieved not only quarterly progress against plan but also year-on-year revenue and profit growth. A simple 50% allocation of the full-year forecasts between H1 and H2 would imply revenue of ¥64,500 million and operating profit of ¥6,100 million. However, these are not company targets that must be achieved, as they do not reflect the company’s plans based on seasonality or product launch timing. They should instead be treated as reference points for measuring progress.

The full-year plan calls for revenue of ¥129,000 million, operating profit of ¥12,200 million, ordinary profit of ¥12,500 million, and net income attributable to owners of the parent of ¥8,550 million. No earnings forecast revisions had been made as of Q1. The plan calls for revenue growth of 7.0% year on year but operating profit growth of only 2.2%, so it is necessary to determine whether the 28.7% Q1 progress rate for operating profit reflects temporary profit front-loading in H1 or incorporates an expected decline in profitability in H2.

At the next earnings release, H1 consolidated revenue and operating profit should be reviewed together with progress against the full-year forecasts, year-on-year changes, and whether the full-year forecasts have been revised. In particular, if revenue exceeds ¥58,982 million but operating profit falls below ¥6,143 million, sales volume growth may not be translating into profit. Conversely, if both revenue of ¥64,500 million and operating profit of ¥6,100 million are exceeded, it will be easier to assess whether the headroom against the full-year plan extends beyond Q1.