Q1 operating profit improvement marks only the beginning of a full-year recovery; FY2027-H1 will be the point at which profit accumulation can be confirmed

Consolidated revenue for the first quarter of the fiscal year ending March 2027 was ¥3,929 million, up 5.5% year on year. Operating results improved from the ¥23 million loss recorded in the year-earlier period to virtually zero on a reported basis in the current quarter. Ordinary profit was ¥48 million, and profit attributable to owners of the parent was ¥22 million. The recovery in revenue and narrowing of the operating deficit are positive, but operating profit remains close to zero in absolute terms, so a full-year earnings recovery cannot yet be considered confirmed.

In FY2026-H1, revenue was ¥7,573 million, the operating loss was ¥6 million, ordinary profit was ¥36 million, and interim profit attributable to owners of the parent was ¥0 million. For FY2027-H1, the first points to verify will be whether revenue exceeds the year-earlier period and operating profit turns positive. As the company has not disclosed a half-year forecast, ¥8,200 million, equivalent to 50% of the ¥16,400 million full-year forecast, and ¥78.5 million, equivalent to 50% of the ¥157 million operating profit forecast, should be viewed only as mechanically calculated progress benchmarks that do not account for seasonality.

Operating profit was virtually zero in Q1, while ordinary profit was ¥48 million, indicating a difference of approximately ¥48 million between the operating and ordinary profit levels. The Q1 earnings summary does not show any significant extraordinary gains or losses, but the items making up the difference between operating and ordinary profit, including the breakdown of non-operating income and expenses and foreign exchange-related gains and losses, have not been sufficiently disaggregated. In H1, it will be necessary to determine whether the improvement in operating profit resulted from sales volume, pricing and product mix in the core business, or included non-operating factors.

As of Q1, the full-year forecasts remained unchanged at revenue of ¥16,400 million, operating profit of ¥157 million, ordinary profit of ¥222 million, net profit of ¥155 million and an annual dividend of ¥12. As no supplementary earnings materials or earnings presentation is scheduled, the explanation of earnings factors in the H1 earnings summary will be the main basis for assessment. Particular attention will be paid to whether the Q1 revenue increase continued into the second quarter, whether operating profit moved from a loss to a stable profit, and whether external conditions changed enough to require a revision to the full-year forecast.