Q1 was ahead of plan on profit, but full-year achievability, including the consolidation of the acquisition in H1, cannot yet be determined

Revenue for the first quarter of the fiscal year ending March 2027 was ¥23,699 million, up 37.4% year on year, while operating profit was ¥1,639 million, up 10.5%. The full-year forecasts are revenue of ¥103,000 million and operating profit of ¥6,000 million, putting Q1 progress at 23.0% for revenue and 27.3% for operating profit. Operating profit progress was 4.3 percentage points ahead of revenue, indicating that profit was ahead of sales on the surface.

However, as of Q1 the company had not disclosed a first-half forecast or a quarterly profit plan. Accordingly, revenue of ¥51,500 million and operating profit of ¥3,000 million are merely mechanical benchmarks obtained by halving the full-year forecasts, not the company’s formal first-half targets. At the next results announcement, it will be necessary to compare performance with these benchmarks, as well as to confirm actual progress against the full-year forecasts, the revenue and operating profit required in the remaining second half, and whether the forecasts have been maintained or revised.

Net income was ¥1,021 million in Q1, down 2.1% year on year, moving in the opposite direction from operating profit. The company attributed the decline to higher income taxes and other taxes, so a key issue for H1 will be whether the higher tax burden is temporary or will continue after Food Odyssey is consolidated. The full-year forecast for net income attributable to owners of the parent is ¥3,300 million, making ¥1,650 million the simple half-year benchmark.

In addition, the operating results of Food Odyssey Pty. Ltd. and its 26 subsidiaries will be consolidated from Q2. Q1 revenue and profit do not include the acquiree’s results, so changes in Q2 year-on-year and quarter-on-quarter figures will reflect the change in the scope of consolidation. At the next results announcement, it will be necessary to determine whether the revenue contribution from the change in the scope of consolidation can be separated from the performance of the existing businesses, and whether H1 progress is sufficient to maintain the full-year forecasts of ¥103,000 million in revenue and ¥6,000 million in operating profit.