The pace of Q1 outperformance against plan will be assessed for sustainability in FY2027-H1

In FY2027-Q1, under IFRS, revenue was ¥106.641 billion, operating profit was ¥3.528 billion, pretax profit was ¥1.369 billion, and profit for the quarter attributable to owners of the parent was ¥924 million. Year on year, revenue increased 54.3%, operating profit 78.3%, pretax profit 89.5% and profit attributable to owners of the parent 152.6%. The results reflected not only a rebound from the low base in the prior-year quarter, but also a simultaneous recovery in exports, increases in logistics and inspection volumes, and a contribution from new-vehicle sales in Australia.

Progress against the full-year plan was 28.1% for revenue, 29.6% for operating profit, 27.4% for pretax profit and 28.9% for profit attributable to owners of the parent. The company considers these figures to be above the 25% benchmark, but this is simply a comparison with quarterly progress and does not adjust for seasonality or shipping schedules. In FY2027-H1, whether revenue builds to around ¥190 billion, equivalent to 50% of the full-year plan of ¥380 billion, and operating profit to around ¥5.95 billion, equivalent to 50% of the ¥11.9 billion plan, will be a practical benchmark for assessing the likelihood of achieving the plan.

In the previous fiscal year, FY2026, revenue was ¥315.507 billion and operating profit was ¥9.837 billion. For FY2027, the company plans revenue growth of 20.4% and operating profit growth of 21.0%. Q1 profit progress is ahead of revenue progress, but this reflects the recovery of multiple businesses, including imports and exports, logistics and inspections, as well as the low comparison base in the prior-year quarter. It will be necessary to distinguish whether margins in Australian retail and wholesale and the recovery of exports to New Zealand continue in Q2; without doing so, the strong Q1 growth cannot be treated as a direct indication of full-year earning power.

At the next earnings release, in addition to first-half cumulative revenue and operating profit, it will be necessary to review Q2 standalone margins, operating profit by segment, export sales volumes and Australian sales volumes. As of Q1, there had been no revision to the full-year earnings forecast, and the annual dividend forecast remained at ¥18. Accordingly, whether the earnings plan or dividend outlook changes in FY2027-H1, and whether first-half profit growth is driven by higher volumes or a one-off recovery in shipping, will be important factors in the assessment.