SG Holdings Co.,Ltd. revised consolidated earnings guidance for the fiscal year ending March 31, 2025. For the year, the company expects operating revenue to be JPY 1,478,000 million against previous guidance of JPY 1,470,000 million. Operating income to be JPY 87,000 million against previous guidance of JPY 90,000 million.

Net income attributable to owners of the parent to be JPY 56,000 million against previous guidance of JPY 60,000 million. Basic net income per share to be JPY 89.53 against previous guidance of JPY 95.93. Reasons for the revisions: The full-year forecasts were revised due to the expectation that the results of the Delivery Business for the second six months of the fiscal year (October 1, 2024 to March 31, 2025) would fall short of assumptions, and that the results of the Logistics Business would exceed assumptions.

In the Delivery Business, the average unit price is progressing as expected due to factors such as a revision of reported fares in April 2024 and efforts to receive appropriate freight tariffs in each transaction. Meanwhile, with the positive trend in real wages not yet firmly established, it also seems that consumer sentiment is stalling. Additionally, with the expansion of in-house delivery networks by some major e-commerce companies, the competitive environment remains harsh.

As a result, the total number of packages for the full year is expected to land at JPY 1.31 billion, falling short of the forecast of JPY 1.32 billion. Furthermore, in terms of expenses, the company is controlling costs in line with the number of packages, but the company also believe that securing resources is necessary for the sustainable and stable provision of services. Based on this rationale, the company has factored in additional costs to ensure that it can maintain a certain level of wages for employees.

In light of factors such as this business environment, the company has revised its earnings forecast for the Delivery Business downward. In the Logistics Business, ocean and air freight rates were steady due to factors such as disruptions in ocean transportation caused by the avoidance of passage through the Red Sea and fluctuations in market prices caused by the associated shift to air transportation, in addition to progression of pricing negotiations with customers. Furthermore, the upward revision was made in light of the fact that the volume of ocean cargo is progressing better than expected due to factors such as the impact of geopolitical risks and the acquisition of new customers.

No changes have been made to the Real Estate Business and Other Businesses from the earnings forecast announced on November 8, 2024. Based on the above, the full-year forecasts for operating revenue, operating income, ordinary income and net income attributable to owners of the parent have been revised. There will be no revision to the dividend forecast due to the revision to the earnings forecast.