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

In the consolidated cumulative second quarter of the fiscal year ending March 31, 2023, as restrictions on economic and social activity due to novel coronavirus infections (hereinafter referred to as “COVID-19”) eased, the number of packages handled in express package delivery services was steady against the backdrop of expansion of the e-commerce market, and operating revenues increased by 3.5% to 751,312 million yen, while operating income was 64,144 million yen (up 9.0% year on year).

Fiscal Year Ending March 31, 2023 2Q Results

* 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 easing of restrictions on economic and social activity and the expansion of the e-commerce market. 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 due to active sales activities centered on GOAL^®(*2). Furthermore, as a result of continuing initiatives to improve productivity such as promoting various types of digitalization, operating revenues increased by 2.0% year on year to 517,477 million yen and operating income increased by 15.5% year on year to 43,866 million yen.
In international transportation in the Logistics Business, marine and air freight charges are normalizing after peaking in the third quarter of the previous fiscal year. Marine and air freight volume was soft due to factors such as concerns about a recession against the backdrop of rising prices and monetary tightening, and the impact of excess inventory centered on consumer goods in the United States. In Japan, we received contracts for new business through comprehensive solution proposals made by GOAL^®. As a result, operating revenues increased by 10.3% year on year to 204,542 million yen while operating income decreased by 1.6% to 14,516 million yen.
In the Real Estate Business, operating revenues decreased by 3.3% year on year to 3,672 million yen and operating income decreased by 19.6% year on year to 2,009 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 13.2% year on year to 25,620 million yen, and operating income increased by 2.9% year on year to 2,522 million yen. 

Future Outlook

Although the economy is on a trend of moderate recovery from the slump caused by COVID-19, the outlook remains uncertain due to concerns about a slowdown in economic growth caused by factors such as rising prices, the acceleration of the weakening of the yen in foreign exchange markets, and the spread of geopolitical risks. The SG Holdings Group will provide transportation services that flexibly meet the needs of customers 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.

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

Based on the cumulative second quarter results and market trends, the earnings forecast for the fiscal year ending March 31, 2023 has been revised to 1,600,000 million yen.

Details of Revision

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