Can agricultural heating equipment continue to support the recovery in the first half?

First-quarter consolidated revenue was ¥1,240.917 million, up 21.3% year on year. The operating loss was ¥189.009 million, narrowing by ¥55.710 million from ¥244.719 million in the same period last year. The company cited higher sales of agricultural heating equipment resulting from sales efforts as the main factor, indicating that, at least in the first quarter, higher volumes or more sales orders drove the overall increase in revenue.

By segment, heating equipment revenue rose 24.3% year on year to ¥1,132.018 million, while sanitary equipment revenue fell 2.9% to ¥108.755 million. Heating equipment segment profit increased to ¥62.232 million from ¥29.970 million in the same period last year, while sanitary equipment segment profit also rose to ¥14.112 million from ¥12.726 million. Heating equipment is the segment where both revenue and profit growth can be confirmed, while the fact that sanitary equipment maintained segment profit despite lower revenue will be a focus for the next update.

First-half results for the same period last year were consolidated revenue of ¥3,111.520 million and an operating loss of ¥199.728 million. Subtracting first-quarter results, a simple calculation indicates that second-quarter revenue of ¥1,870.603 million would be required to reach the first-half revenue level recorded last year. To bring heating equipment alone to its first-half revenue of ¥2,884.931 million last year would require second-quarter revenue of ¥1,752.913 million, while sanitary equipment would need ¥117.194 million. These are mechanical comparisons that do not adjust for seasonality.

The company’s explanation remains qualitative, citing higher sales of agricultural heating equipment, and does not provide sales volume, average unit prices, revenue growth by product, order intake or order backlog. In the next earnings release, we will assess whether first-half heating equipment revenue maintained its 24.3% year-on-year growth pace, whether the decline in demand for sanitary equipment was temporary, and by how much the operating loss narrowed from ¥199.728 million, together with segment-level volume and pricing data.