FY2027-H1: Focus on sustaining revenue and profit growth and the repeatability of earnings progress

FY2027-Q1 revenue was ¥35,306 million, up 4.5% year on year, operating profit was ¥5,553 million, up 3.6%, ordinary profit was ¥5,668 million, up 4.0%, and net profit attributable to owners of the parent was ¥3,814 million, up 9.4%. Progress against the full-year revenue forecast of ¥130,013 million was 27.2%, while progress against the full-year operating profit forecast of ¥13,048 million was 42.6%, meaning that earnings were advancing substantially faster than revenue.

However, it is too early to conclude that full-year results will exceed expectations based solely on the high progress rate for operating profit. The moving services business is highly seasonal, with differences between the first and second halves in the number of jobs, pricing and the timing of subcontracting costs. Q1 profit margins therefore cannot be extrapolated directly to the full year. The Q1 operating margin on revenue calculates to approximately 15.7%, compared with 10.1% for FY2026 as a whole, so the differences between the periods need to be taken into account.

For FY2027 as a whole, the company has forecast revenue of ¥130,013 million, operating profit of ¥13,048 million, ordinary profit of ¥13,368 million and net profit attributable to owners of the parent of ¥8,743 million. As of Q1, there had been no revision to the earnings forecasts. Next time, we will use as progress benchmarks whether revenue reaches approximately ¥65,006 million, half of the mechanically calculated full-year forecast, and whether operating profit exceeds ¥6,524 million.

Although changes in the scope of consolidation and higher moving prices boosted Q1 results, the earnings release does not disclose a profit bridge by factor or the allocation of the full-year plan by quarter. In the first-half results, it will be necessary to assess together the growth of existing businesses excluding the revenue contribution from changes in the scope of consolidation, the operating margin, trends in subcontracting and personnel costs, and whether the full-year forecasts are maintained or revised.