Operating profit continues to rise despite lower revenue, but freight transportation is the main focus for FY2027-H1

In FY2027-Q1, consolidated revenue was ¥2,605 million, operating profit was ¥101 million, ordinary profit was ¥150 million, and net profit attributable to owners of the parent was ¥93 million. Year on year, revenue increased 2.6%, operating profit increased 82.3%, and ordinary profit increased 46.1%, while net profit declined 29.8%. The full-year forecasts were unchanged at revenue of ¥10,231 million and operating profit of ¥332 million, putting Q1 progress at 25.5% for revenue and 30.6% for operating profit.

By segment, the freight trucking business recorded revenue of ¥2,369.437 million and segment profit of ¥129.009 million, up 2.7% and 59.5% year on year, respectively. For the full fiscal year ended March 2026, the business recorded revenue of ¥9,167.511 million and segment profit of ¥347.300 million. Revenue declined 3.2%, while profit increased 103.3%. The key issue for FY2027-H1 is whether the pattern of profit improvement ahead of revenue recovery continues, driven by better freight rates, transport profitability and operating structures.

The real estate leasing business, meanwhile, recorded FY2027-Q1 revenue of ¥170.436 million and segment profit of ¥96.918 million. Revenue increased 4.9%, but profit declined 4.1%. For the full fiscal year ended March 2026, revenue was ¥657.372 million and profit was ¥413.330 million, both up year on year. However, the expiry of some tenant contracts in the previous fiscal year affected 3PL revenue, and stabilization through contract renewals had been expected. In FY2027-H1, occupancy after contract renewals, the presence of vacant space, and changes in rents and on-site operating costs will need to be monitored.

The Other business reported lower revenue and profit in FY2027-Q1, at ¥65.515 million and ¥15.622 million, respectively. For the full fiscal year ended March 2026, revenue was ¥253.765 million and profit was ¥79.705 million, down 6.4% and 14.1%, respectively. The company has cited higher depreciation expense following equipment replacement and lower vehicle sales, but has not disclosed the amounts attributable to each factor. In FY2027-H1, we will assess whether improved profitability in freight transportation alone can support growth in consolidated operating profit, and whether the non-core businesses are moving into the red or incurring additional costs.