Operating and ordinary losses have continued for 9 consecutive periods, with weak earnings power persisting in FY2027-H1

FY2027-H1 recorded an operating loss of ¥304.017 million and an ordinary loss of ¥353.535 million. The company had recorded operating and ordinary losses for 8 consecutive periods through the previous fiscal year, and losses in the current interim period extended the consecutive run to 9 periods. FY2026 also recorded an operating loss of ¥81.337 million and an ordinary loss of ¥190.731 million, making it important that the operating and ordinary losses are not attributable solely to temporary interim-period factors.

Compared with the previous year's interim period, the operating loss in FY2026-H1 was ¥4.239 million and the ordinary loss was ¥59.214 million. In FY2027-H1, the operating loss widened by approximately ¥299.8 million and the ordinary loss by approximately ¥294.3 million. Even taking into account the effects of fixed costs and production volumes associated with the suspension and resumption of operations at the Sakura Plant, a recovery in operating profit has not yet been confirmed. FY2025-H1 recorded an operating loss of ¥16.638 million and an ordinary loss of ¥47.185 million, so operating results have remained in the red for the latest 3 interim periods.

Meanwhile, FY2027-H1 net income attributable to owners of the parent was ¥3,916.597 million due to the recognition of extraordinary income. As a result, looking only at net income makes it appear that the company returned to profitability, but operating profit and ordinary profit, which reflect recurring sales volumes, manufacturing costs and fixed costs, remained negative. In the next earnings release, it will be necessary to confirm whether the operating loss has narrowed from ¥304.017 million, whether a recovery in revenue has translated into improved gross profit, and whether the effects of the improvement measures can be explained in terms of amounts and volumes.