2027 Fiscal Year First Quarter Financial Summary (Consolidated) [Japanese GAAP]

Performance overview

This quarter's first quarter net sales were JPY 9,899 million, down 5.4% YoY. Operating loss was JPY 387 million, ordinary loss was JPY 352 million, and net loss attributable to owners of the parent was JPY 327 million, indicating that the earnings environment remains challenging. The Restaurant business faces a slow recovery in customer visits and higher costs for raw materials and labor, leading to revenue and profit declines. ODM/OEM expects continued production capacity to meet demand but faces revenue and profit decline. Real estate leasing and Transportation show relatively stable or improving trends in parts of the business. The company aims to maximize profitability through the GK2030 medium-term plan.

Financial position and outlook

Total assets at quarter-end were JPY 45,291 million, with the equity ratio falling to 19.6%. Liabilities rose, including an increase in short-term borrowings, while cash declined. There is no change to the earnings forecast for the fiscal year ending March 2027 from the forecast published in May 2026. However, external factors such as exchange rates, raw material price movements, and labor costs remain uncertain.