Q1 is ahead of the full-year plan on profit

FY2027-Q1 revenue was ¥9.272 billion, up 2.3% year on year, while operating profit was ¥239 million, up 50.8%. Ordinary profit was ¥204 million and quarterly net profit was ¥194 million, up 31.9% and 53.0%, respectively, from the same period a year earlier. Revenue growth was modest, but profit growth was substantial, with operating profit improving by ¥81 million from ¥158 million in the prior-year quarter.

The company's FY2027 full-year forecasts are revenue of ¥36.2 billion, operating profit of ¥550 million, ordinary profit of ¥390 million and net profit of ¥320 million. As of FY2027-Q1, revenue had reached 25.6% of the full-year forecast and operating profit 43.5%, putting operating profit ahead of the 25% elapsed portion of the fiscal year. However, the retail sector is highly seasonal, so full-year performance cannot be assessed based solely on first-half profit progress. We will therefore monitor whether cumulative FY2027-H1 operating profit reaches at least ¥275 million.

FY2026-H1, the relevant comparison period, recorded revenue of ¥17.565 billion and operating profit of ¥280 million. Accordingly, operating profit in FY2027-H1 must exceed at least ¥280 million to surpass the prior-year period. Since ¥239 million was recorded in Q1 alone, a simple calculation suggests that Q2 operating profit above ¥41 million would put first-half operating profit ahead of the prior-year period. However, seasonal factors and the timing of promotional spending must also be taken into account.

The company cited special sales campaigns and new store openings at Gyomu Super, the benefit of new yakiniku specialty-store openings, improved margins from expanding DCM private-brand products, control of personnel costs, closer scrutiny of sales-promotion expenses and improved logistics efficiency through inventory reduction as reasons for the Q1 improvement. At the same time, it specifically noted a post-Golden Week pullback and weak sales of camping products involving overnight stays. The next results will therefore be assessed for whether operating profit growth continues into the first half and whether the full-year forecast of ¥550 million is maintained.