Can the strong first-quarter progress be maintained in the second quarter?

In the first quarter of the fiscal year ending March 2027, revenue increased 46.6% to ¥1,473 million from ¥1,004 million in the same period of the previous year. Operating profit turned from a ¥36 million loss in the same period of the previous year to a ¥338 million profit, while ordinary profit improved from a ¥127 million loss to ¥368 million and net profit attributable to owners of the parent improved from a ¥61 million loss to ¥247 million. The key change this time was not only revenue growth but also a return to profitability.

The company’s forecast for the six months ending September 2026 is revenue of ¥2,700 million, operating profit of ¥510 million, ordinary profit of ¥530 million and net profit of ¥320 million. First-quarter progress was approximately 54.6% for revenue, 66.3% for operating profit, 69.4% for ordinary profit and 77.2% for net profit. Based simply on the cumulative differences, the second quarter alone would need to generate revenue of ¥1,227 million, operating profit of ¥172 million, ordinary profit of ¥162 million and net profit of ¥73 million.

Against the full-year forecasts, first-quarter progress was approximately 25.8% for revenue and 41.2% for operating profit, with operating profit progress ahead of revenue progress. However, the information available this time covers only first-quarter results and cumulative forecasts. The quarterly allocation of profit in the first-half forecast and detailed assumptions regarding ocean freight rates and vessel utilization have not been disclosed. The strong first-quarter progress should therefore not by itself be taken as a basis for assuming full-year upside; the second quarter’s standalone profit level needs to be examined.

At the next earnings release, in addition to whether the amounts required above were exceeded, it will be important to check the difference between operating profit and ordinary profit and the build-up of net profit after tax and other deductions. In particular, if the company achieves first-half operating profit of ¥510 million but falls short of net profit of ¥320 million, it will be important to see whether the bridge from operating profit to net profit, including non-operating income and expenses and the tax burden, is explained.