SG Holdings (9143) Q1 2025 earnings summary

Executive summary

• Q1 FY2025/3 saw year-over-year increases in consolidated operating revenue and income, driven by higher freight tariffs and strong logistics performance, especially Expolanka.

• Operating revenues for Q1 FY2025 rose 5.0% year-over-year to ¥334,527 million, with net income attributable to owners up 4.8% to ¥12,401 million.

• Delivery business faced a decline in package volume due to inflation and competition, but average unit price increased after fare revisions.

• SG Holdings acquired 84.83% of Chilled & Frozen Logistics Holdings Co., Ltd. (C&F) in July 2024 to enhance logistics solutions and expects synergies.

• Comprehensive income for the quarter was ¥16,298 million, down 11.5% year-over-year.

Financial highlights

• Operating revenue rose to ¥334.5B (+5.0% YoY); operating income increased to ¥19.5B (+4.1% YoY); net income attributable to owners was ¥12.4B (+4.8% YoY).

• ROE for Q1 was 8.8%, up from 8.6% a year earlier.

• Free cash flow improved to ¥18.5B from ¥4.2B YoY; cash and cash equivalents at period end were ¥146.7B.

• Equity ratio declined to 61.1% from 64.4% due to increased interest-bearing debt for the C&F acquisition.

• Total assets as of June 30, 2024, were ¥897,049 million, with total equity at ¥557,181 million.

Outlook and guidance

• Full-year FY2025/3 guidance unchanged: operating revenue ¥1,380.0B (+5% YoY), operating income ¥96.0B (+8% YoY), net income ¥64.5B (+11% YoY).

• Segment forecasts revised: delivery business revenue lowered due to reduced package volume forecast (1.36B packages), logistics business revenue raised reflecting Expolanka's Q1 results, real estate revenue increased on sales plan changes.

• Dividend forecast maintained at ¥52 per share.

• Basic net income per share forecast for the full year is ¥103.12.

• No revisions to previously announced earnings or dividend forecasts.