SG Holdings (9143) Q2 2025 earnings summary

Executive summary

• Operating revenue increased 10% year-over-year in H1 FY2025/3 to ¥708.0B, driven by higher freight tariffs and Expolanka, despite a decline in Delivery Business package volume.

• Net income remained flat at ¥25.4B, while comprehensive income decreased 34.9% year-over-year to ¥21.7B.

• The full-year forecast was revised: operating revenue raised, operating income lowered, but both expected to rise year-over-year.

• C&F Holdings was consolidated from October, with synergies expected in logistics and cost management.

Financial highlights

• H1 FY2025/3 operating revenue: ¥708.0B (+10% YoY); operating income: ¥39.1B (+0.7% YoY); net income: ¥25.4B (flat YoY).

• ROE for H1: 9.0% (vs. 9.2% prior year); operating margin: 5.5% (vs. 6.0% prior year).

• Q2 operating revenue: ¥373.5B (+15% YoY); Q2 operating income: ¥19.6B (-3% YoY).

• Expolanka H1 revenue: ¥112.9B (+217% YoY); C&F H1 revenue: ¥60.3B (+3.4% YoY, not consolidated in H1).

• Total assets as of September 30, 2024: ¥1,030.9B, up from ¥897.0B at March 31, 2024.

Outlook and guidance

• FY2025/3 full-year revenue forecast: ¥1,470.0B (+12% YoY); operating income: ¥90.0B (+1% YoY); net income: ¥60.0B (+3% YoY).

• Dividend forecast maintained with a 1 yen increase to ¥52.00 per share.

• Delivery Business package forecast lowered to 1.32B (YoY 96%).

• Expolanka and C&F expected to drive growth in Logistics Business.

• Basic net income per share for the full year forecasted at ¥95.93.