Confirm whether Q1's front-loaded profit performance holds through FY2027-H1

Consolidated revenue in the first quarter of FY2027 ending March 2027 was ¥45,468 million, up 14.1% year on year, while operating profit was ¥6,867 million, up 9.4%. Net profit attributable to owners of the parent was ¥5,590 million, up 31.9%. The full-year forecasts are revenue of ¥181,000 million, operating profit of ¥18,900 million, ordinary profit of ¥19,100 million and net profit of ¥14,200 million, putting Q1 progress at 25.1% for revenue, 36.3% for operating profit and 39.4% for net profit.

The key issue for the next results announcement is that operating profit progress is 11.2 percentage points ahead of revenue progress. The company raised its full-year forecasts based on strong Q1 sales, sales to overseas distributors and tight control of selling, general and administrative expenses. However, the fact that it generated 36.3% of full-year operating profit in Q1 needs to be assessed in light of the possibility that advertising expenses, personnel expenses and DTC-related costs will increase in the second half. Against the full-year operating profit forecast of ¥18,900 million, the benchmark for simple 50% achievement in the first half is ¥9,450 million.

For revenue, ¥90,500 million, or half of the ¥181,000 million full-year forecast, is the simple benchmark for first-half progress. This is a mechanical benchmark that does not take seasonality into account and is not a figure disclosed by the company as a first-half target. Next time, we need to assess how far cumulative first-half revenue and operating profit exceed these benchmarks, and whether Q2 alone continues to deliver higher revenue and profit.

The Q1 results explanation provided a qualitative statement that progress was ahead of the forecast announced in May, but the progress rates against the full-year forecasts themselves were not disclosed. The company also did not prepare a quarterly cash flow statement for Q1, and did not disclose operating, investing or financing cash flow. In the first half, we want to assess the reliability of the revised plan based not only on earnings but also on cash generation and investment requirements.