FY2027-H1: verify progress of around 50% after the full-year forecast upgrade

Revenue in FY2027 Q1 was ¥67,333 million, operating profit was ¥7,324 million, ordinary profit was ¥7,201 million, and net income attributable to owners of the parent was ¥6,111 million. Year on year, these figures represented increases of 22.8%, 96.6%, 147.4% and 2.6%, respectively, while the operating margin rose to approximately 10.9% from approximately 6.8% a year earlier. Net income, however, did not increase to the same extent as operating profit, requiring a further check during the interim period on how far the improvement flowed through to the bottom line.

Following Q1, the company revised its interim forecasts to revenue of ¥128,000 million, operating profit of ¥14,400 million, ordinary profit of ¥14,400 million and net income of ¥12,400 million. The increases from the previous forecasts were ¥11,000 million, ¥2,300 million, ¥2,500 million and ¥2,500 million, respectively. Full-year forecasts were also raised to revenue of ¥242,000 million, operating profit of ¥26,500 million, ordinary profit of ¥25,300 million and net income of ¥25,000 million, with the operating profit forecast raised by ¥3,400 million.

Q1 progress against the interim forecasts was 52.6% for revenue, 50.9% for operating profit, 50.0% for ordinary profit and 49.3% for net income. At the next results announcement, we will assess not only whether the interim forecasts were achieved, but also how much profit was added in Q2 alone and whether the assumption that ¥12,100 million of operating profit remains to be generated in the second half to meet the full-year forecast of ¥26,500 million is still valid. Key factors will be whether ocean freight market conditions, foreign exchange rates and fuel costs for coastal shipping have diverged from the assumptions underlying the upgraded forecasts.