FY2027 Q1 got off to a weak start relative to the full-year forecast

In Q1, from April to June 2026, revenue was ¥9,899 million, the operating loss was ¥387 million, the ordinary loss was ¥352 million, and the net loss attributable to owners of the parent was ¥327 million. In the same quarter of the previous year, revenue was ¥10,461 million and the operating loss was ¥106 million. Thus, the operating loss widened substantially relative to the 5.4% decline in revenue, highlighting the deterioration in profitability.

Q1 revenue represented approximately 22.1% of the full-year forecast of ¥44,700 million, below the 25% share represented by one quarter of the fiscal year. Against the full-year operating profit forecast of ¥760 million, Q1 recorded an operating loss of ¥387 million, making simple progress negative. To maintain the full-year plan, the company will need not only to restore revenue volume from Q2 onward, but also to absorb higher costs such as raw materials, labor and utilities and build profit.

The company explained that customer traffic in the restaurant business remained sluggish because of bad weather, including heavy rain and typhoons, while the ODM/OEM business saw a decline in the number of in-flight meals loaded on China and Middle East routes. Meanwhile, non-operating and extraordinary items such as a ¥34 million gain on the sale of fixed assets, a ¥24 million loss on the disposal of fixed assets and a ¥43 million impairment loss were small compared with the ¥387 million operating loss. The Q1 loss therefore cannot be explained solely by these items.

The full-year forecasts are revenue of ¥44,700 million, operating profit of ¥760 million, ordinary profit of ¥660 million and net profit of ¥260 million. The annual dividend forecast remains ¥7. In FY2027 H1, whether operating profit at least returns to positive territory or exceeds the ¥210 million operating profit recorded in FY2026 H1 will be a concrete benchmark for assessing the achievability of the full-year forecast. The company did not prepare a quarterly cash flow statement for Q1 and did not disclose operating cash flow, so H1 will require confirmation not only of earnings but also of cash generation.