Why do profits fluctuate when compared from quarter to quarter?

Quarterly results for the previous period and the current period are shown on page 35 of the FY2024/1 Q2 Earnings Presentation. (https://ssl4.eir-parts.net/doc/9166/ir_material_for_fiscal_ym3/141438/00.pdf)

Basically, sales are higher in the first quarter, second quarter, third quarter, and fourth quarter, in that order, as is the case in most years.

On the other hand, profits can be blurred by multiple factors. Just as the previous quarter’s quarterly results fluctuated, this quarter’s results will fluctuate due to a variety of factors when compared to the results of the current quarter, which are only isolated to the quarterly accounting period. In the third quarter of this fiscal year, we expect cost accrual factors, and since we expect sales to grow in the fourth quarter in accordance with our seasonality, we believe that profits will tend to be more heavily weighted in the fourth quarter than in the third quarter. Since these variable factors have been factored in since the initial planning, we believe that we are generally making very good progress toward our full-year plan.

Tag: 2023/9/27