Meeting the revised first-half plan will require a significant catch-up in Q2

In Q1, from April to June 2026, revenue was ¥23,592 million, down 1.2% year on year, and operating profit was ¥371 million, down 82.1%. Progress against the full-year revenue forecast of ¥145,400 million was 16.2%, while progress against the operating profit forecast of ¥26,100 million was 1.4%. Both were below the 25% proportion of the fiscal year that had elapsed. The delay in profit progress was particularly pronounced, making the recovery in profitability, rather than revenue, the bottleneck to achieving the first-half target.

The company revised its FY2027-H1 forecasts to revenue of ¥55,600 million, operating profit of ¥4,200 million, ordinary profit of ¥7,000 million and profit attributable to owners of the parent of ¥5,400 million. The revisions represent decreases of 7.2% for revenue, 40.0% for operating profit, 23.9% for ordinary profit and 20.6% for profit attributable to owners of the parent. However, the pre-revision first-half forecast amounts cannot be confirmed from the disclosed data, so the monetary differences resulting from this revision cannot all be recalculated.

Based on the revised first-half plan, Q2 alone needs to generate revenue of ¥32,008 million, operating profit of ¥3,829 million, ordinary profit of ¥4,402 million and profit attributable to owners of the parent of ¥3,151 million. Compared with Q1, this represents approximately 1.36 times the revenue and approximately 10.3 times the operating profit. Although Q2 seasonality must be taken into account, achieving the first-half plan will require not only a recovery in revenue but also normalization of the profit margin, which deteriorated sharply in Q1.

The full-year forecasts remain unchanged at revenue of ¥145,400 million, operating profit of ¥26,100 million, ordinary profit of ¥34,100 million and profit attributable to owners of the parent of ¥25,600 million. At the next earnings announcement, it will first be necessary to check the results for the four first-half indicators and progress against the full-year forecasts, and then monitor whether the explanation that any first-half shortfall can be absorbed by second-half seasonality is maintained or whether the full-year forecasts are revised again.