| Metric | This Period | Prior Year Same Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥2994.7億 | ¥2807.4億 | +6.7% |
| Operating Income / Operating Profit | ¥221.1億 | ¥178.3億 | +24.0% |
| Ordinary Income | ¥212.8億 | ¥180.4億 | +18.0% |
| Net Income | ¥42.0億 | ¥132.7億 | -14.3% |
| ROE | 2.7% | 10.2% | - |
The fiscal year ended March 2025 results were Revenue ¥2,994.7億 (YoY +¥187.3億 +6.7%), Operating Income ¥221.1億 (YoY +¥42.8億 +24.0%), Ordinary Income ¥212.8億 (YoY +¥32.4億 +18.0%), and Net Income attributable to owners of the parent ¥111.5億 (YoY +¥11.1億 +11.1%). In addition to a revenue growth trend, Operating Margin improved from 6.4% to 7.4% (+1.0pt), and operating leverage worked effectively, resulting in double-digit operating profit growth.
[Revenue] Revenue amounted to ¥2,994.7億 (YoY +6.7%), marking the second consecutive year of revenue growth. Gross profit was ¥461.2億 (Gross margin 15.4%), up +15.1% YoY, supported by correction of storage/delivery unit prices and improved utilization rates. The main drivers of revenue growth were recovery in logistics demand and the pass-through of price revisions, leading to expanded volumes handled domestically and internationally.
[Profitability] SG&A was ¥240.1億 (SG&A ratio 8.0%), up +8.0% YoY, but gross profit expansion absorbed this increase, and Operating Income reached ¥221.1億 (YoY +24.0%), achieving double-digit profit growth. Operating Margin improved to 7.4% (from 6.4% a year earlier), a +1.0pt improvement, reflecting fixed-cost absorption and the effect of price revisions. Non-operating income was ¥17.2億 (dividend income received ¥6.5億, foreign exchange gains ¥3.3億, etc.), and non-operating expenses were ¥25.4億 (interest expense ¥9.9億, foreign exchange losses ¥2.9億, etc.), yielding a net non-operating deficit of -¥8.2億. Ordinary Income was ¥212.8億 (YoY +18.0%), broadly in line with operating profit growth. Extraordinary gains/losses were a net -¥3.2億 (gain on sales of investment securities ¥5.2億, loss on retirement of fixed assets ¥5.2億, impairment loss ¥5.0億, etc.), relatively minor, with recurring income comprising the bulk of profits. Pre-tax income was ¥209.6億, with income taxes of ¥64.2億 (effective tax rate 30.6%) and non-controlling interests of ¥33.9億 deducted, resulting in Net Income attributable to owners of the parent of ¥111.5億 (YoY +11.1%). Conclusion: revenue and profit growth.
[Profitability] Operating Margin 7.4% (improved +1.0pt from 6.4% prior year), Net Income Margin 3.7% (slight increase from 3.6%), indicating notable improvement in operating-stage profitability. ROE 2.7% is calculated as Net Income attributable to owners of the parent ¥111.5億 divided by prior-year-end shareholders’ equity ¥1,297.5億; low net margin and deduction for non-controlling interests are constraining factors. [Cash Quality] Operating Cash Flow (OCF) ¥237.0億 is 2.1x Net Income (Net Income attributable to owners of the parent ¥111.5億), indicating high quality; EBITDA is approximately ¥335億 (Operating Income ¥221億 + Depreciation ¥114億), and OCF/EBITDA ratio is 0.71x, below the 0.9x threshold, with working capital absorption such as an increase in trade receivables of -¥22.9億 suppressing cash conversion. [Investment Efficiency] Total Asset Turnover 0.964x (Revenue ¥2,994.7億 ÷ average total assets during the period approx. ¥3,105億), CapEx ¥98.6億 vs. Depreciation ¥114.1億 yielding a CapEx/Depreciation ratio of 0.86, at a maintenance level. Goodwill ¥23.2億 (0.7% of total assets) is immaterial, and goodwill amortization ¥2.55億 is about 0.8% of EBITDA, with limited impact. [Financial Soundness] Equity Ratio 50.6% (Net Assets ¥1,570.9億 ÷ Total Assets ¥3,107.1億), Interest-bearing debt (short-term borrowings ¥5.5億 + long-term borrowings ¥510.7億 + bonds ¥160.0億) ¥676.2億, Debt/EBITDA 2.0x, Interest Coverage 22.4x (EBIT ¥221.1億 ÷ interest expense ¥9.9億), indicating high soundness. Current Ratio 178% (Current Assets ¥1,006.4億 ÷ Current Liabilities ¥565.3億), Cash and Deposits ¥480.4億 equals 87x short-term borrowings ¥5.5億, implying extremely low maturity mismatch risk.
OCF was ¥237.0億 (YoY +8.2%). Starting from OCF subtotal (before working capital changes) ¥309.4億, after working capital movements including increase in trade receivables -¥22.9億 and increase in trade payables +¥7.0億, and after deducting corporate taxes paid -¥58.1億, the resulting OCF was as reported. OCF/EBITDA 0.71x (EBITDA approx. ¥335億) is below the 0.9x threshold; an increase in accounts receivable associated with volume growth suppressed cash conversion. Investing Cash Flow was -¥96.4億, with capital expenditures -¥98.6億 and intangible asset acquisitions -¥17.5億, partially offset by proceeds from sale of tangible assets +¥3.5億. Free Cash Flow was ¥140.6億 (OCF + Investing CF), ample and covering total dividends of approx. ¥36.5億 by 3.68x, indicating high sustainability. Financing Cash Flow was -¥34.2億, with share buybacks -¥119.6億, dividend payments -¥36.5億, and dividends to non-controlling interests -¥19.1億 funded by long-term borrowings +¥114.0億 and proceeds from treasury stock disposal +¥80.3億. Net short-term borrowings decreased by -¥58.9億, and year-end cash and deposits rose to ¥480.4億 (from ¥354.9億 at the beginning, +35.3%). The accrual ratio ((Net Income - OCF) ÷ Net Income) is -4.0%, negative, indicating cash flows exceed profits and a healthy structure.
This period's profits are mainly operating-driven, with Operating Income ¥221.1億 broadly consistent with Ordinary Income ¥212.8億. Net non-operating items were a net -¥8.2億 (Non-operating income ¥17.2億, Non-operating expenses ¥25.4億), with dividend income received ¥6.5億 and foreign exchange gains ¥3.3億 offset by interest expense ¥9.9億 and foreign exchange losses ¥2.9億, meaning one-off factors are limited. Extraordinary items were a net -¥3.2億 (extraordinary gains ¥8.9億, extraordinary losses ¥12.1億), including gain on sale of investment securities ¥5.2億, loss on retirement of fixed assets ¥5.2億, impairment loss ¥5.0億, etc., but immaterial in total. There is a roughly 48% gap between Ordinary Income ¥212.8億 and Net Income attributable to owners of the parent ¥111.5億, primarily due to income taxes ¥64.2億 (effective tax rate 30.6%) and deduction for non-controlling interests ¥33.9億. Total Comprehensive Income was ¥267.3億 (¥222.2億 attributable to owners of the parent, ¥45.1億 attributable to non-controlling interests); the difference from Net Income attributable to owners of the parent ¥111.5億 reflects Other Comprehensive Income +¥110.7億 including foreign currency translation adjustments ¥54.0億, valuation difference on available-for-sale securities ¥42.8億, actuarial adjustments related to retirement benefits ¥20.7億, etc. Accrual quality is good: OCF ¥237.0億 is more than 2.1x Net Income, supporting recurring-income backing.
Full-year guidance projects Revenue ¥3,160.0億 (YoY +5.5%), Operating Income ¥230.0億 (YoY +4.0%), Ordinary Income ¥211.0億 (YoY -0.9%), and Net Income attributable to owners of the parent ¥125.0億 (YoY +12.1%). Progress rates are Revenue 94.8%, Operating Income 96.1%, Ordinary Income 100.8%, and Net Income attributable to owners of the parent 89.2%, indicating results are broadly achieved on a full-year basis. The next-period guidance anticipates continued operating profit growth (+4.0%), while Ordinary Income is nearly flat (-0.9%), suggesting a conservative estimate for non-operating items. Net Income attributable to owners of the parent is expected to rise +12.1%, assuming changes in tax burden and non-controlling interests. EPS forecast is ¥166.40 (from actual ¥148.27, +12.2%), dividend forecast ¥25.00 (the actual ¥49.00 is the pre-stock-split level and adjusted for comparison), indicating continued shareholder returns.
Interim and year dividends for the period total ¥49 per share (interim ¥24.5, year-end ¥24.5, pre-split basis), with payout ratio 36.3% (dividends totaling approx. ¥40.5億 relative to Net Income attributable to owners of the parent ¥111.5億). Total dividends approx. ¥36.5億 (based on average shares outstanding 75,214 thousand) are covered 3.68x by Free Cash Flow ¥140.6億, indicating high sustainability. Share buybacks of ¥119.6億 were executed, and total returns (dividends + buybacks) were approx. ¥156億, an aggressive level exceeding Net Income for the period. Total Return Ratio is approx. 140% (Total Returns ¥156億 ÷ Net Income attributable to owners of the parent ¥111.5億), demonstrating a shareholder-return stance supported by liquidity and financial capacity. A 3-for-1 stock split for common shares was implemented effective May 1, 2025, and the next-period dividend forecast of ¥25.00 is expected on a post-split basis. With Equity Ratio 50.6% and Debt/EBITDA 2.0x, there is ample financial capacity to continue stable dividends.
Volume decline risk from slowdown in global trade and domestic consumption: Revenue ¥2,994.7億 growth +6.7% depends on demand conditions; trade stagnation or consumption contraction could depress utilization and unit prices for storage/delivery, pressuring Operating Margin 7.4%. As indicated by an increase in trade receivables of -¥22.9億, working capital absorption accompanying volume growth is ongoing, and rapid demand declines could create collection risk and inventory burdens.
Structural constraint of high tax burden: Effective tax rate 30.6% and deduction of non-controlling interests ¥33.9億 relative to Net Income attributable to owners of the parent ¥111.5億 keep Net Income Margin at 3.7%. The tax burden coefficient 0.53 (tax burden ¥64.2億 + non-controlling interests ¥33.9億 relative to pre-tax income ¥209.6億) is high; if regional mix and non-deductible items persist, ROE at 2.7% may remain low.
Fixed-cost inflation and risk of reversal of operating leverage: SG&A ¥240.1億 rose +8.0% YoY, outpacing revenue growth +6.7%. With rigid cost structure including personnel expenses ¥385.7億 and lease expenses ¥229.6億, if revenue growth slows, the improving trend in Operating Margin 7.4% may reverse, and the low Gross Margin 15.4% could pressure profitability.
Profitability & Return
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Margin | 7.4% | 6.3% (3.7%–8.5%) | +1.1pt |
| Net Income Margin | 1.4% | 2.7% (1.6%–4.7%) | -1.3pt |
Operating Margin exceeds the industry median by 1.1pt, indicating relatively strong profitability within the industry, but Net Income Margin lags the median by 1.3pt due to tax burden and deduction for non-controlling interests.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 6.7% | 5.0% (-0.4%–9.4%) | +1.7pt |
Revenue growth rate exceeds the median by 1.7pt, maintaining a relatively solid top-line growth trend within the industry.
※Source: Company aggregation
Improvement to Operating Margin 7.4% and continued revenue and profit growth: Operating Margin improved from 6.4% to 7.4% (+1.0pt), achieving double-digit Operating Income growth of +24.0%. Although Gross Margin 15.4% remains low, SG&A control and fixed-cost absorption enabled operating-stage profitability improvement. If price revisions continue to take hold and utilization is maintained, there is upside to the conservative next-period guidance of Operating Income +4.0%. Sustainability of operating leverage and improvement in working capital collection are keys to medium-term profit growth.
Coexistence of financial soundness and shareholder returns: With Equity Ratio 50.6%, Debt/EBITDA 2.0x, and Interest Coverage 22.4x, financial resilience is strong. Payout ratio 36.3% and FCF coverage 3.68x indicate dividend sustainability. The company executed share buybacks of ¥119.6億 during the period, and Total Return Ratio of approx. 140% demonstrates an active return stance. With cash on hand ¥480.4億 and OCF generation ¥237.0億, there is scope for continued stable dividends and flexible share buybacks in the next period.
This report was automatically generated by AI analyzing XBRL financial statement data to produce a financial results analysis. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your own responsibility; please consult professionals as necessary.