Profit is lagging revenue progress, requiring accelerated profit growth in FY2027-H1

In FY2027 Q1, revenue was ¥10,277 million, operating profit was ¥320 million, ordinary profit was ¥335 million, and net profit attributable to owners of the parent was ¥205 million. Progress against the full-year forecasts of ¥45,000 million in revenue, ¥2,250 million in operating profit, ¥2,250 million in ordinary profit, and ¥1,400 million in net profit was 22.8%, 14.2%, 14.9%, and 14.6%, respectively, indicating that profit is lagging revenue.

For the six months ended September in FY2026, revenue was ¥18,940 million and operating profit was ¥470 million. These represented 46.97% and 30.68%, respectively, of full-year revenue of ¥40,322 million and operating profit of ¥1,532 million. Applying these historical proportions mechanically to the FY2027 forecast gives H1 revenue of approximately ¥21,137 million and operating profit of approximately ¥690 million. These are not the company's H1 forecasts, but reference figures for understanding seasonality.

On this basis, the benchmark for Q2 alone after deducting Q1 results is approximately ¥10,860 million in revenue and ¥370 million in operating profit. Q1's operating margin was 3.11%, while achieving the H1 benchmarks of approximately ¥21,100 million in revenue and ¥690 million in operating profit would imply an operating margin of approximately 3.3%. Accordingly, the minimum condition is that the margin does not deteriorate materially in Q2.

The full-year forecast after Q1 remained unchanged at ¥45,000 million in revenue and ¥2,250 million in operating profit. In the next results, we would like to confirm not only the H1 figures, but also how much of the increase in revenue translated into operating profit, whether approximately ¥370 million in operating profit was secured in Q2 alone, and whether the burden on the second half required to maintain the full-year operating profit forecast has become excessive.