Profit is lagging the full-year plan for the fiscal year ending February 2027

First-quarter operating revenue for the fiscal year ending February 2027 was ¥95.274 billion, operating profit was ¥2.403 billion, ordinary profit was ¥2.489 billion, and net income attributable to owners of the parent was ¥1.632 billion. Year on year, operating revenue fell 0.4%, operating profit fell 11.8%, ordinary profit fell 11.5%, and net income fell 18.8%, indicating a substantial decline in profit despite sales remaining broadly flat.

The full-year forecasts remain unchanged at operating revenue of ¥400 billion, operating profit of ¥14.7 billion, ordinary profit of ¥14.7 billion, and net income of ¥9.3 billion. First-quarter progress was 23.8% for operating revenue, 16.3% for operating profit, 16.9% for ordinary profit, and 17.5% for net income. Operating revenue was close to the 25% elapsed-quarter benchmark, while operating profit and the metrics below it were lagging. In the second quarter, whether results reach the simple first-half run-rate of ¥200 billion in operating revenue and ¥7.35 billion in operating profit will be a benchmark for assessing the achievability of the full-year plan.

The company cites raw-material prices, delivery costs, and the competitive environment as challenging factors, but has not disclosed how many hundreds of millions of yen these factors reduced first-quarter operating profit by. Nor do the supplementary materials show progress against the full-year forecasts or the profit level required over the remaining 9 months. For FY2027-H1, in addition to operating revenue and operating profit, we would like to confirm gross margin, SG&A expenses, the effect of price revisions, and the impact of delivery costs and labor costs on an amount basis.