SG Holdings Co., Ltd. hereby announces the financial results for the fiscal year ended March 31, 2024.
　
In the fiscal year ended March 31, 2024, the Delivery Business experienced a decline in the number of packages handled in express package delivery services due to the impact of weakening household consumer spending after price adjustments, and the Logistics Business experienced a decline in both ocean and air cargo volume due to ongoing concerns about slowing economic growth against a backdrop of monetary tightening due to rising prices and other factors, and freight tariffs remained at a low level. As a result, operating revenues decreased by 8.2% from the previous year to 1,316,940 million yen and operating income decreased by 34.1% to 89,204 million yen.
　      

Results for the Fiscal Year Ended March 31, 2024

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

Overview by Segment

In the Delivery Business, the number of both BtoB and BtoC packages handled decreased due to the impact of factors such as weakening consumer spending after adjustment of prices. Although the increase in the percentage of small packages is a downward factor, the average unit price rose due to the effects of the revision of reported fares from April 2023 and efforts to receive appropriate freight tariffs in each transaction. In addition, proposal sales for TMS^*1 continued to be made by GOAL^®*2, but sales decreased due to the absence of business related to COVID-19 that had been received in the previous fiscal year. Furthermore, the Group has continued initiatives to improve customer convenience and productivity through the promotion of digitalization, such as establishing an official Sagawa Express account for the LINE communication app operated and developed by Line Corporation (currently LY Corporation) in April 2023, enabling the use of functions including “delivery schedule notification” and “package inquiry service” on LINE. These efforts also included a joint project launched in December 2023 with Sumitomo Corporation and US startup developer of AI robotics software Dexterity, Inc. to conduct a demonstration experiment of the logistics industry’s first “AI-equipped loading robot” as part of efforts to address the shortage of transportation capability in future. As a result, operating revenues from this business segment decreased by 1.8% year on year to 1,028,530 million yen and operating income decreased by 18.3% to 81,503 million yen.
In the Logistics Business, although there have begun to be signs of a recovery in consumer sentiment in the United States, ocean and air cargo volume decreased due to factors such as continuing concerns about a slowdown in economic growth against the backdrop of monetary tightening resulting from rising prices. Although there were some increases in marine and air freight charges, they remained low overall. As a result, operating revenues decreased by 30.2% year on year to 219,761 million yen and there was an operating loss of 4,854 million yen (operating income of 19,239 million yen in the previous fiscal year).
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 35.4% year on year to 12,623 million yen while operating income decreased by 28.2% to 7,139 million yen.
In Other Businesses, as a result of the recovery in sales of new vehicles that had been performing poorly in the previous fiscal year due to the impact of factors such as the semiconductor shortage, operating revenues increased by 6.1% year on year to 56,024 million yen while operating income decreased by 20.5% to 3,415 million yen.
　

Future Outlook

Although a gradual economic recovery is expected due to the emergence of the effects of the government’s comprehensive economic measures and rising real wages, the outlook remains uncertain due to factors such as rising resource prices and the continued weakening of the yen in the foreign exchange market, as well as the continuation of tight global monetary policies and growing geopolitical risks. Under such conditions, the SG Holdings Group will engage in the enhancement of comprehensive logistics solutions (GOAL^®), the expansion of management resources leading to the creation of competitive advantages, and further advancement of governance, which continue to be key strategies for the final year of the SGH Story 2024 Mid-term Management Plan. In addition, taking into account the changes in the business environment since the Mid-term Management Plan was formulated, such as the response to the 2024 problem, the progression of inflation and the slowdown of the global economy, we will work to achieve sustainable growth by (1) building a platform for growth such as by entering growth areas and expanding new businesses, (2) maintaining and securing internal and external resources by raising unit prices for outsourcing to partner companies, and (3) restructuring of cost structure to continuously support the business by investing in labor saving and automation, and continuing efforts to receive appropriate freight tariffs.
　

(*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, 2025

Based on results for the fiscal year ended March 31, 2024 and current market trends, operating revenues in the fiscal year ending March 31, 2025 are forecasted to be 1,380,000 million yen.

Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2025

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

Dividends

With regard to the annual dividend forecast for the fiscal year ended March 31, 2024, the year-end dividend has been revised to 25 yen per share, a decrease of 1 yen from the previously announced forecast, since the consolidated financial results for the full year fell below the forecast at the beginning of the fiscal year. Combined with the interim dividend, the annual dividend is expected to be 51 yen per share, the same amount as the previous fiscal year.
The dividends for the fiscal year ending March 31, 2025 are planned to be as follows.

Dividend Forecast

For further information, please visit our Investor Relations website.
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