Honyaku Center (2483) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 net sales fell 8.0% YoY to ¥2,454 million; operating income declined 70.8% to ¥62 million and net income attributable to parent shareholders fell 74.1% to ¥36 million.

• Translation sales weakened on lower orders from major customers and the absence of prior-year spot projects; Interpretation sales reached a first-quarter record.

Financial highlights

• Gross profit was ¥1,172 million versus ¥1,303 million YoY; SG&A rose to ¥1,110 million from ¥1,090 million.

• Ordinary income was ¥67 million, down 69.3% YoY; comprehensive income was ¥35 million, down 75.3%.

• Net income before taxes was ¥67 million versus ¥219 million YoY; income taxes were ¥30 million versus ¥76 million.

Outlook and guidance

• FY2027 guidance remains unchanged: net sales ¥11,300 million (+3.9%), operating income ¥750 million (+6.2%), ordinary income ¥780 million (+4.1%) and net income ¥500 million (+8.1%).

• Q2 cumulative guidance: net sales ¥5,500 million (+2.8%), operating income ¥260 million (-25.0%), ordinary income ¥270 million (-26.5%) and net income ¥160 million (-33.1%).

• FY2027 EPS forecast is ¥148.74; Q2 cumulative EPS forecast is ¥47.60.