1Q operating profit exceeded the plan, but second-half earnings buildup is needed to achieve the full-year target

In 1Q of the fiscal year ending March 2027, gross profit was ¥17.5 billion, SG&A expenses were ¥13.7 billion, operating profit was ¥3.8 billion and net income attributable to owners of the parent was ¥2.6 billion. The financial summary showed operating profit of ¥3.836 billion and net income of ¥2.593 billion, with standalone 1Q earnings exceeding the prior-year period. The full-year plan calls for gross profit of ¥75.5 billion, SG&A expenses of ¥55.5 billion, operating profit of ¥20.0 billion and net income of ¥14.0 billion, with SG&A expenses disclosed as 25% of the full-year plan in 1Q.

The company cited LPG margins and sales volumes and growth in equipment gross profit as factors behind operating profit exceeding the initial plan by ¥900 million. The gross profit variance was ¥1.0 billion above plan, comprising ¥600 million from LPG, ¥200 million from electricity, ¥100 million from city gas and ¥100 million from the platform business. SG&A expenses, meanwhile, were ¥100 million above plan, with higher costs from inflation and advance procurement of materials and equipment absorbed through measures including improved operating efficiency.

Although the full-year operating profit forecast remained unchanged at ¥20.0 billion, the gross profit plan for 2Q–4Q was reduced by ¥1.0 billion from the initial plan, and the latest operating profit plan for 2Q–4Q was ¥16.2 billion. Accordingly, the ¥900 million 1Q outperformance did not directly lead to an upward revision of the full-year forecast. In FY2027-H1, it will be necessary to check cumulative 2Q operating profit, cumulative progress in SG&A expenses, changes in assumptions for raw-material prices and temperatures, and the second-half capacity to maintain the ¥20.0 billion full-year forecast.