SG Holdings Co., Ltd. hereby announces the financial results for the third quarter of the fiscal year ending March 31, 2022.

In the consolidated cumulative third quarter of the fiscal year ending March 31, 2022, although movements of recovery in economic activity remained weak while difficult conditions continued due to novel coronavirus infections (hereinafter referred to as “COVID-19”), new lifestyles such as the utilization of e-commerce became more widespread, and operating revenues increased by 18.8% to 1,166,640million yen, while operating income was 114,828 million yen (up 29.7% year-on-year).

Fiscal Year Ending March 31, 2022 3Q Results

The percentages in parentheses represent year-on-year changes.

Overview by Segment

In the Delivery Business, the number of packages handled in express package delivery services during the consolidated cumulative third quarter increased slightly year-on-year. Although measures such as the declaration of a state of emergency were lifted nationwide, weakness was seen in movements of recovery in corporate activities, and the number of BtoB packages handled in the express package delivery services that are the Group’s main product were on par with the previous year. Meanwhile, the number of BtoC packages handled was strong due to increase in users of Internet and other forms of mail order sales. In addition, TMS (*1) performed well as a result of proposal sales by GOAL (*2). As a result, operating revenues increased by 3.1% year-on-year to 790,452 million yen and operating income increased by 18.1% to 74,630 million yen.

In the Logistics Business, as marine and air freight tariffs continued to rise because there is still no resolution in sight for the global shortage of marine containers, Expolanka Holdings PLC, the Company’s consolidated subsidiary, stably secured container space to meet customer demand. In Japan, we received contracts for new business such as 3PL (third party logistics) through comprehensive solution proposals made by GOAL. As a result, operating revenues increased by 125.5% year-on-year to 326,696 million yen while operating income increased by 209.3% to 31,138 million yen.

In the Real Estate Business, the sale of real estate holdings is planned for the fourth quarter of the fiscal year ending March 31, 2022. As a result, operating revenues decreased by 73.2% year-on-year to 5,647 million yen while operating income decreased by 67.6% to 3,466 million yen.

In Other Businesses, BPO transactions increased, but operating revenues decreased by 11.1% year-on-year to 43,843 million yen while operating income increased by 23.1% to 3,515 million yen as a result of the decrease in “e-Collect.”

Future Outlook

The economy is on a trend of recovery from the slump caused by COVID-19, but the outlook remains uncertain due to factors such as COVID-19 spreading again as a result of variants. As a logistics group supporting social infrastructure the Group will continue to ensure steps to prevent infections and contribute to the realization of a sustainable society through the provision of services ahead of the times and optimal logistics solutions.

(*1) The Transportation Management System, a solution providing added value other than express package delivery services.

(*2) The GOAL® (GO Advanced Logistics) project team
A group-wide advanced logistics project team with the “goal” of working with customers to resolve logistics issues through the　provision of advanced logistics solutions

Revision of Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022

Based on the results of the third quarter, the earnings forecast for the fiscal year ending March 31, 2022 was revised from the previous forecast with operating revenues increasing by 70,000 million yen to 1,520,000 million yen and operating income increasing by 14,000 million yen to 139,000 million yen. The results for the fourth quarter of the fiscal year were calculated based on the assumption that the high marine and air freight tariffs associated with the marine container shortage would continue for the remainder of the fiscal year.

Details of Revision

*The Company conducted a split of the shares of its common stock on a 2-for-1 basis effective November 1, 2020. Basic net income per share was calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

Revision of Dividends

In conjunction with the earnings forecast revision, the Group has revised its dividend forecast by increasing it by 5 yen from the previous forecast to 46 yen per share.

Details of Revision

*The Company conducted a split of the shares of its common stock on a 2-for-1 basis on November 1, 2020, and the amount of dividends paid at the end of the second quarter of the previous fiscal year is the amount prior to the split.
* The dividends paid at the end of the second quarter of the previous fiscal year include a special dividend of 10.00 yen.

For further information, please visit our IR・ESG website.
https://www.sg-hldgs.co.jp/en/ir