FY2027 Q1 is on track, but profit declined year on year in every segment

In FY2027 Q1, operating revenue was ¥2,745 million, operating profit was ¥308 million, ordinary profit was ¥347 million, and net profit attributable to owners of the parent was ¥248 million. Year on year, operating revenue increased 0.9%, operating profit 1.4%, ordinary profit 4.5% and net profit 9.2%, representing modest growth in both revenue and profit at the consolidated level.

The full-year forecast is operating revenue of ¥11,200 million, operating profit of ¥1,260 million, ordinary profit of ¥1,280 million and net profit of ¥860 million. Progress as of Q1 was approximately 24.5%, 24.4%, 27.1% and 28.8%, respectively. Operating revenue and operating profit were broadly in line with the 25% elapsed portion of the year, while net profit had progressed relatively further, partly because of extraordinary income. In assessing the first half, priority should therefore be given to the accumulation of operating profit.

By segment, logistics operating revenue was ¥2,313 million, up 0.7% year on year, while segment profit was ¥231 million, down 4.5%. Real estate operating revenue was ¥345 million, up 3.5%, but segment profit was ¥208 million, down 7.2%. Other businesses generated operating revenue of ¥86 million, down 3.7%, and segment profit of ¥31 million, down 5.8%. Profit declined year on year in all three reportable segments.

The increase in consolidated operating profit was supported by a decline in selling, general and administrative expenses, while aggregate segment profit remained below the prior-year level. Accordingly, in FY2027-H1 we will review not only whether operating revenue reaches ¥5,600 million, half the full-year forecast, and operating profit reaches ¥630 million, but also whether the declines in logistics, real estate and other businesses narrow or turn positive year on year.