FY2027 1Q: Sharp profit growth, with earnings momentum to be validated in the first half

In FY2027 1Q, net sales were ¥32,376 million, operating profit was ¥3,429 million, ordinary profit was ¥3,361 million, and net income attributable to owners of the parent was ¥2,230 million. Year on year, net sales rose 7.0%, operating profit 74.9%, ordinary profit 90.1%, and net income 124.9%, with profit growth outpacing sales growth. Progress against the full-year forecast was 24.3% for net sales, 31.2% for operating profit, 32.0% for ordinary profit, and 34.3% for net income, meaning profit progress was ahead of the 25% share of the year represented by one quarter.

The 1Q operating margin was approximately 10.6%, calculated by dividing operating profit of ¥3,429 million by net sales of ¥32,376 million. By comparison, the operating margin was approximately 8.4% in the first half of FY2026, based on ¥5,168 million divided by ¥61,480 million, and approximately 8.1% for FY2026 as a whole, based on ¥10,236 million divided by ¥125,605 million. The high 1Q margin reflected higher gross profit and a review of the cost structure of selling, general and administrative expenses, but costs related to commissioning the new plant, wage increases, workforce expansion, and sales promotion may increase from the first half onward.

For FY2027, the company forecasts net sales of ¥133,000 million, operating profit of ¥11,000 million, ordinary profit of ¥10,500 million, and net income of ¥6,500 million. Whether first-half net sales reach ¥66,500 million and operating profit reaches ¥5,500 million will serve as a benchmark for determining whether the company can combine expanded 1DAY sales with SG&A control, rather than merely reflecting seasonality. At the next results announcement, it will also be necessary to check whether changes in operating profit are disclosed by gross profit, investment in personnel, advertising and promotional expenses, and new-plant-related costs.