Can the final year of the revised 11th Medium-Term Management Plan show renewed acceleration from FY2027-Q1?

FY2026 revenue fell 1.3% year on year to ¥39.134 billion, while operating profit increased to ¥1.128 billion. The FY2027 company plan calls for revenue of ¥42.0 billion, operating profit of ¥1.440 billion, ordinary profit of ¥1.620 billion and net profit attributable to owners of the parent of ¥1.055 billion. On a simple calculation, the plan requires increases of ¥2.866 billion in revenue and ¥312 million in operating profit, equivalent to revenue growth of 7.3% and operating profit growth of 27.6%.

However, these targets follow substantial reductions from the initial targets under the 11th Medium-Term Management Plan. The original final-year targets were revenue of ¥52.0 billion, ordinary profit of ¥2.8 billion, an ordinary profit margin of 5.4% and ROE of 8.0%. They were revised to revenue of ¥42.0 billion, ordinary profit of ¥1.620 billion, an ordinary profit margin of 3.9% and ROE of 4.0% due to an uncompleted M&A transaction, delays in launching the services business, changes in the business environment and foreign-exchange fluctuations. In FY2027-Q1, it will be necessary to assess not only progress against the revised plan but also whether the assumptions for growth investment have weakened again.

In FY2026-Q1, revenue was ¥8.251 billion, operating loss was ¥213 million, ordinary loss was ¥135 million and net loss attributable to owners of the parent was ¥298 million. Accordingly, whether FY2027-Q1 revenue exceeds the prior-year period and operating profit reaches at least breakeven will be an important initial test for evaluating the full-year operating profit target of ¥1.440 billion. Demand in the stationery and office supplies business is seasonal and concentrated in the second half, so the full-year plan cannot be mechanically apportioned to Q1. However, a renewed expansion of losses would increase the risk to plan achievement.

For shareholder returns, the FY2027 plan provides for an annual dividend of ¥15 and a payout ratio of 40.0%, maintaining the dividend amount from FY2026, when the dividend was ¥15 and the payout ratio was 42.2%. In the next results, it will be necessary to check for revisions to the earnings forecast, Q1 operating profit or loss, the contribution to revenue growth by segment, and whether the dividend policy is maintained alongside the profit plan.