FY2027 first half: sales on track, focus on recovery in operating profit

Revenue for the first quarter of the fiscal year ending March 2027 was ¥2,986 million, up 5.8% year on year. Progress against the full-year forecast of ¥12,125 million was 24.6%, nearly reaching the simple even-progress benchmark of 25% after three months. Operating profit, meanwhile, improved to ¥112 million, up 70.9% year on year, but progress against the full-year forecast of ¥740 million was only 15.1%, meaning profit is progressing more slowly than revenue.

First-quarter ordinary profit was ¥196 million, representing 26.1% progress against the full-year forecast of ¥751 million. Net profit attributable to owners of the parent was ¥127 million, representing 25.0% progress against the full-year forecast of ¥508 million. Accordingly, using simple even allocation as a benchmark, cumulative first-half figures of ¥6,063 million in revenue, ¥370 million in operating profit, ¥376 million in ordinary profit and ¥254 million in net profit represent potential checkpoints. However, as the company has not disclosed a first-half forecast or seasonality, these are mechanical benchmarks for measuring progress, not forecasts in themselves.

At the next earnings announcement, it will be necessary to confirm not only whether revenue is increasing in line with the plan, but also how much of the operating profit shortfall was recovered in the second quarter. In particular, the welfare equipment business recorded lower profit despite higher revenue, so growth in company-wide revenue may not translate directly into profit growth. Key disclosures will include first-half revenue and profit by segment, the amount attributable to each factor improving operating profit, and the reasons for maintaining or revising the full-year forecast.