Q1 revenue growth accompanied by losses at every profit level; H1 will show whether the full-year recovery is visible

Operating revenue in Q1 of the fiscal year ending March 2027 was ¥14,211 million, up ¥493 million, or 3.6%, year on year. However, operating profit deteriorated from a ¥29 million profit in the same period of the previous year to an operating loss of ¥94 million. Ordinary profit likewise moved from a ¥87 million profit to a ¥101 million loss, while net profit attributable to owners of the parent fell from a ¥140 million profit to a ¥305 million loss. Revenue growth and profit deterioration occurred simultaneously, so revenue progress alone is insufficient to assess the distance to the full-year plan.

In the most recent first half of the fiscal year ended March 2026, operating revenue was ¥30,455 million and operating profit was ¥2,280 million. Against full-year actual results of ¥64,183 million in operating revenue and ¥5,979 million in operating profit, progress was 47.5% and 38.1%, respectively. These figures are historical reference points that include seasonality and do not mean that H1 of the fiscal year ending March 2027 will follow the same pattern. However, if H1 operating profit falls significantly below ¥2,280 million, reliance on a recovery in the second half to achieve the full-year forecast of ¥6,552 million will increase.

The company has maintained its full-year forecasts of ¥67,123 million in operating revenue, ¥6,552 million in operating profit, ¥6,437 million in ordinary profit, and ¥4,381 million in net profit attributable to owners of the parent. Q1 operating revenue represents approximately 21.2% of the full-year forecast, while operating profit progress is negative because the company posted a ¥94 million loss. On a simple even quarterly allocation, H1 operating revenue would be expected to reach ¥33,562 million, but the next results release will need to be assessed not only on the amount itself, but also on how much of the Q1 loss has been absorbed.

The Q1 summary report did not disclose the operating margin on revenue, making a year-on-year comparison of the operating margin impossible. In addition, no quarterly consolidated statement of cash flows was prepared, so it is not possible to determine how the loss affected cash generation. In H1, we will need to review the cumulative figures for operating revenue, operating profit, and operating margin, together with any revision to the full-year forecast, when cost increases are expected to level off, and whether operating cash flow is disclosed.