Q1 profit progress ahead of revenue, with FY2027-H1 to test the sustainability of the full-year forecast

In FY2027-Q1, revenue was ¥16.994 billion, up 11.4% year on year, operating profit was ¥2.114 billion, up 13.0%, ordinary profit was ¥2.120 billion, up 13.4%, and quarterly net profit was ¥1.436 billion, up 13.4%. Progress against the full-year forecast was 25.4% for revenue, 31.1% for operating profit, 31.2% for ordinary profit and 31.9% for net profit, with progress for the profit measures ahead of revenue.

On a simple even-quarter allocation basis, the Q1 benchmark against the ¥67.0 billion full-year revenue forecast is ¥16.750 billion, while the benchmark against the ¥6.8 billion operating profit forecast is ¥1.7 billion. Actual revenue exceeded the benchmark by ¥244 million and operating profit by ¥414 million, indicating revenue growth accompanied by margin improvement at this stage. However, the food-service industry is seasonal, and second-half margins may fluctuate with customer traffic during the summer and year-end/New Year period, the reversal of campaign effects and start-up costs for new stores. It is therefore too early to conclude that the full-year targets will be achieved based on Q1 progress alone.

The FY2027 full-year forecasts are revenue of ¥67.0 billion, operating profit of ¥6.8 billion, ordinary profit of ¥6.8 billion and net profit of ¥4.5 billion. Revenue is planned to increase 7.6% from the previous year, operating profit 3.3% and ordinary profit 3.2%, while net profit is projected to decline 4.9%. In addition to the modest planned increase in operating profit, net profit is the only measure expected to decline. At the interim results, it will therefore be necessary to assess whether changes in non-operating income and expenses, extraordinary income and expenses, and the tax burden are assumed. No extraordinary income or extraordinary loss was recorded in Q1, so it will also be important to determine whether any one-off factors arise in FY2027-H1.

At the next earnings release, we will first check whether revenue reaches around ¥33.5 billion and operating profit around ¥3.4 billion. We will also assess whether operating profit progress continues to outpace revenue progress, whether the ¥6.8 billion full-year operating profit forecast is revised, and whether progress toward the ¥4.5 billion net profit forecast diverges from operating profit. The company did not disclose its own assessment of whether Q1 was on plan, above plan or below plan, so at the interim stage, numerical progress and the presence or absence of forecast revisions must be assessed separately.