SG Holdings Co., Ltd. hereby announces the financial results for the first quarter of the fiscal year ending March 31, 2025.
　
In the first quarter of the fiscal year ending March 31, 2025, the number of packages handled in express package delivery services declined due to lower real wages caused by rising inflation and an increasingly competitive environment in some areas, and although marine cargo volume declined, air cargo volume increased year on year due to the impact of geopolitical risks and the acquisition of new customers. As a result, during the three months ended June 30, 2024, operating revenues increased by 5.0% year on year to 334,527 million yen and operating income increased by 4.1% to 19,504 million yen.
In the third quarter of the previous fiscal year, the Company finalized the provisional accounting treatment for business combinations, and the figures for the fiscal year ended March 31, 2024 reflect the details of the finalization of the provisional accounting treatment.

Fiscal Year Ending March 31, 2025 Q1 Results

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

Overview by Segment

In the Delivery Business, both BtoB and BtoC delivery volume declined due to the effects of declining real wages caused by ongoing inflation and an increasingly competitive environment in some areas, but the average unit price rose due to the revision of reported fares from April 2024 and efforts to collect appropriate freight tariffs. As for TMS^*1, we continued our efforts to improve convenience for customers and productivity through proposal-based sales using GOAL^®*2 and promotion of various digitalization measures. As a result, operating revenues were down 0.1% year on year to 251,783 million yen and operating income was up 4.8% to 17,987 million yen.
In the Logistics Business, marine and air freight charges increased due to factors such as disruptions in marine transportation caused by the avoidance of passage through the Red Sea and Suez Canal and a shift to air transportation, while air cargo volume increased year on year due to the effects of the abovementioned geopolitical risks and the acquisition of new customers. As a result, operating revenues increased by 33.9% year on year to 68,608 million yen, and operating income was 36 million yen (operating loss of 1,243 million yen in the same period of the previous year).
In the Real Estate Business, results progressed according to plan. As a result, operating revenues from this business segment decreased by 3.8% year on year to 1,785 million yen while operating income increased by 3.0% to 1,199 million yen.
In Other Businesses, as a result of a decrease in sales of new vehicles such as large trucks, operating revenues decreased by 8.4% year on year to 12,349 million yen and operating income decreased by 67.4% to 378 million yen.

Future Outlook

In the final year of the “SGH Story 2024” Mid-term Management Plan, we will continue to focus on our key strategies of upgrading our GOAL^® comprehensive logistics solution, expanding management resources to create competitive advantages, and further improving governance. In addition, taking into account the changes in the business environment since the Mid-term Management Plan was formulated, such as 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.
The consolidated earnings forecast for the fiscal year ending March 31, 2025 remains unchanged from the consolidated earnings forecast for the first half and full year as announced on April 30, 2024. However, there are some changes to the forecasts by segment. The impact on performance of the acquisition of shares of Chilled & Frozen Logistics Holdings Co., Ltd. in July 2024 is currently under review, and is not included in the consolidated forecast or forecasts by segment. If any facts arise that should be disclosed in the future, we will promptly disclose them.

*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.

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