First-quarter revenue is on track, but operating profit is slightly behind plan

Operating revenue in the first quarter of the fiscal year ending March 2027 was ¥447,306 million and operating profit was ¥20,062 million, representing year-on-year increases of 21.7% and 14.9%, respectively. The full-year forecasts remain unchanged at ¥1,740,000 million for operating revenue and ¥97,000 million for operating profit, implying simple progress rates of 25.7% and 20.7%, respectively. Compared with 25% of the fiscal year having elapsed, revenue is broadly on track, while profit is approximately 4.3 percentage points behind.\n\nThe first-quarter operating margin was approximately 4.5%, calculated as ¥20,062 million divided by ¥447,306 million, down 0.3 percentage points year on year. The FY2026 full-year operating margin was 5.5%, so the current level is approximately 1.0 percentage point below the full-year level. Revenue growth has not translated directly into profit, as lower earnings in the Delivery and Logistics businesses, the timing of bonus accruals, and higher outsourcing and personnel costs are holding back profit progress.\n\nIn FY2027-H1, we will monitor how far the operating margin recovers in the second quarter alone and how much the cumulative operating profit progress rate rises from 20.7% in the first quarter. The first-quarter materials show progress against the full-year forecast by segment, but do not provide the company’s first-half plan or a profit bridge by factor for the first half. Even if the full-year forecast is maintained, it will be important to explain specifically when revenue growth will translate into profit and how much profit will be required in the second half.