Can first-half results maintain linear progress toward the full-year plan?

In the first quarter of the fiscal year ending March 2027, revenue was ¥42,485 million, up 3.1% year on year, and operating profit was ¥2,081 million, up 26.6%. The full-year forecasts are revenue of ¥170,000 million, operating profit of ¥8,100 million, ordinary profit of ¥8,200 million, and net income attributable to owners of the parent of ¥5,600 million. First-quarter progress rates were therefore 25.0%, 25.7%, 26.0% and 24.8%, respectively. The difference between revenue and operating profit progress was small, so at least as of the first quarter, profit was not materially behind the plan while revenue remained on track.

However, the assumption that the first half will account for half of the full year is merely a mechanical benchmark that does not reflect seasonality. The company has not disclosed performance forecasts or seasonality by first and second half, so ¥85,000 million in revenue and ¥4,050 million in operating profit should be treated not as forecasts, but as reference thresholds equivalent to 50% of the full-year forecasts. Even if results fall below these levels for the six months to the second quarter, this would not immediately indicate a full-year shortfall, but it will be important to see whether the reasons for the shortfall and the assumptions for a recovery in the second half are explained.

The first-quarter operating margin was approximately 4.90%, calculated from the disclosed revenue and operating profit. The forecast operating margin calculated from full-year revenue of ¥170,000 million and operating profit of ¥8,100 million is approximately 4.76%, so the first-quarter margin was slightly higher. The company has not directly disclosed the first-quarter operating margin, however, and the first-half margin will need to be independently verified from the figures in the earnings summary.

In addition, first-quarter segment profit totaled ¥1,812 million for the domestic vehicle sales business and the imported vehicle dealership business, while consolidated operating profit was ¥2,081 million. The disclosure provided does not show a detailed breakdown of the ¥269 million difference. In the first-half results, we will check the relationship between total segment profit, consolidated operating profit and the adjustment amount, and track whether the basis for maintaining the full-year forecasts can be explained through the segment build-up.