SG Holdings Co., Ltd. hereby announces the financial results for the first quarter of the fiscal year ending March 31, 2023.

In the first quarter of the fiscal year ending March 31, 2023, as restrictions on socioeconomic activity due to novel coronavirus infections (hereinafter referred to as “COVID-19”) were relaxed, new lifestyles became established, and the number of packages handled was steady. As a result, operating revenues increased by 11.3% to 386,938 million yen, while operating income was 33,280 million yen (up 15.1% year on year).
The main results are described below.

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

Overview by Segment

In the Delivery Business, BtoB and BtoC packages were steady, backed by the resumption of economic activity and the expansion of the e-commerce market. Meanwhile, the average unit price decreased slightly due to the impact of the decrease in large packages despite continued efforts to receive appropriate freight tariffs. Furthermore, TMS (*1) continued to perform well as a result of proposal sales by GOAL^® (*2). In addition, the Company continued efforts to improve productivity, such as the promotion of various forms of digitalization. As a result, operating revenues increased by 1.6% year on year to 258,498 million yen and operating income increased by 8.5% to 21,939 million yen.
In the Logistics Business, marine and air freight tariffs have been firm since peaking in the third quarter of the previous fiscal year. Meanwhile, purchasing costs have risen due to the continued tightening of supply and demand caused by factors such as the shortage of containers. Furthermore, the volume of air cargo weakened due to the impact of lockdowns that continued in parts of Asia until June, but marine cargo was steady, resulting in operating revenues increasing 48.0% year on year to 114,085 million yen and operating income increasing 45.5% to 8,331 million yen.
In the Real Estate Business, operating revenues decreased by 4.4% year on year to 1,901 million yen and operating income decreased by 25.1% year on year to 1,050 million yen due to the sale of properties in the previous fiscal year and a decrease in rent income, but results were as planned.
In Other Businesses, although there was an increase in logistics IT projects within the total logistics proposals by GOAL^®, sales of new vehicles decreased due to the semiconductor shortage. As a result, operating revenues decreased by 11.6% year on year to 12,453 million yen and operating income increased by 33.0% to 1,261 million yen.

Future Outlook

The downturn in the economy caused by COVID-19 is on a trend of recovery, but the outlook remains uncertain due to factors such as rising raw material prices, the acceleration of the weakening of the yen in foreign exchange markets, and concerns about the renewed spread of COVID-19. The SG Holdings Group will provide transportation services that flexibly meet the needs of customers changing day to day through the enhancement of comprehensive logistics solutions (GOAL^®) and the expansion of management resources leading to the creation of competitive advantages, which are key strategies for the first year of the SGH Story 2024 Mid-term Management Plan.

*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.

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