SG Holdings Co., Ltd. hereby announces the financial results for the fiscal year ended March 31, 2022.

In the fiscal year ended March 31, 2022, the number of packages handled increased due to the expansion of the e-commerce market while there is no end in sight for novel coronavirus infections (hereinafter referred to as “COVID-19”), resulting in operating revenues increasing by 21.1% year on year to 1,588,375 million yen and operating income increased by 53.1% to 155,713 million yen.

Results for the Fiscal Year Ended March 31, 2022

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

Overview by Segment

In the Delivery Business, economic activity has been restricted due to repeated declarations of a state of emergency and applications of priority preventative measures, resulting in the number of BtoB packages handled being on par with the previous year. Meanwhile, the number of BtoC packages handled increased mainly due to a rise in the e-commerce rate in the merchandizing sector caused by the establishment of new lifestyles, resulting in the number of packages handled in express package delivery services slightly increasing year on year. In addition, TMS (*1) performed well as a result of proposal sales by GOAL (*2). As a result, operating revenues increased by 2.8% year on year to 1,043,186 million yen and operating income increased by 30.4% to 93,211 million yen.
In the Logistics Business, disruption of global supply chains continued with strain on air cargo space because there is still no resolution in sight for the global shortage of marine containers. As a consequence, while marine and air freight charges remained high, Expolanka Holdings PLC, as a subsidiary, stably secured container space to meet strong 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 129.6% year on year to 477,031 million yen while operating income increased by 280.2% to 48,459 million yen.
In the Real Estate Business, the Group made planned sales of real estate holdings. As a result, operating revenues from this business segment decreased by 50.6% year on year to 11,292 million yen while operating income decreased by 41.6% to 6,612 million yen.
In Other Businesses, BPO transactions increased while automobile sales and e-collect services declined. As a result, operating revenues from this business segment decreased by 14.5% year on year to 56,864 million yen while operating income increased by 10.7% to 4,658 million yen.

Future Outlook

Although the economy is on a trend of recovery from the slump caused by COVID-19, the outlook has become increasingly uncertain due to global conditions such as shortages of parts and materials caused by the global tightening of supply of marine containers, rising resource prices associated with the increase in logistics costs, and growing geopolitical risks. The Group will work toward creating next-generation competitive advantages realizing sustainable growth such as strengthening the transportation network in Japan and overseas including alliances, and promoting services aimed at resolving social and environmental issues such as decarbonization.

(*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.

Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023

Based on the results for the fiscal year ended March 31, 2022 and recent conditions, the forecast for the fiscal year ending March 31, 2023 is 1,650,000 million yen in operating revenues and 142,000 million yen in operating income.

Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023

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

Dividends

The annual dividend forecast for the fiscal year ended March 31, 2022 has been revised upward by 4 yen to 50 yen per share, based on the dividend policy targeting a consolidated payout ratio of 30%. Furthermore, the dividend forecast for the fiscal year ending March 31, 2023 is as follows.

Dividend Forecast

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