FY2027-H1: assessing progress toward the full-year operating profit target of ¥1,350 million

FY2027-Q1 revenue was ¥5,448 million, up 12.6% year on year, and operating profit was ¥334 million, up 236.2%. Ordinary profit was ¥311 million, up 437.7%, while quarterly net profit attributable to owners of the parent was ¥208 million, up 641.6%, indicating a significant improvement across profit items, including non-operating factors. Dividing revenue and operating profit by the full-year forecasts of ¥22,000 million and ¥1,350 million, respectively, gives progress rates of approximately 24.8% for both as of Q1.

The full-year plan calls for revenue of ¥22,000 million, operating profit of ¥1,350 million, ordinary profit of ¥1,050 million and net profit of ¥700 million, representing year-on-year growth of 7.1% in revenue and 30.4% in operating profit. On a simple half-year basis, ¥11,000 million in revenue, ¥675 million in operating profit, ¥525 million in ordinary profit and ¥350 million in net profit would provide reference points for FY2027-H1. However, Sanritsu’s results are affected by the handling of large precision equipment and warehouse operating schedules, so reaching 50% should not be treated mechanically as the company’s forecast, but rather as a benchmark for assessing the reasonableness of progress.

In Q1, all four businesses posted year-on-year increases in both revenue and profit: the Packaging Business generated revenue of ¥3,873 million and segment profit of ¥524 million; the Transportation Business generated revenue of ¥693 million and profit of ¥87 million; the Warehousing Business generated revenue of ¥812 million and profit of ¥117 million; and the Rental Building Business generated revenue of ¥68 million and profit of ¥22 million. On the other hand, the Q1 summary did not disclose the operating margin, operating cash flow, regional revenue, or orders received and order backlog. In H1, it will be necessary to check not only whether consolidated profit increased, but also whether disclosures on the operating margin and cash generation are supplemented.

FY2026 revenue was ¥20,532 million and operating profit was ¥1,035 million, so the FY2027 plan requires increases of ¥1,468 million in revenue and ¥315 million in operating profit. After achieving approximately one-quarter of the plan in Q1, exceeding ¥11,000 million in revenue and ¥675 million in operating profit on a cumulative Q2 basis would indicate broadly on-track first-half progress. Conversely, if revenue falls below ¥11,000 million and operating profit also fails to reach ¥675 million, it will be important to assess how convincingly the company can explain its assumption that recovery in large precision equipment and U.S. machine tools will be concentrated in the second half.