Establishing new earnings pillars beyond rental greenery

「Building a more stable revenue base in businesses handling horticultural products, such as wall and rooftop greening, remains a challenge. To establish new revenue bases, we intend to make medium-term investments in a range of businesses, including retail businesses such as cafés integrated with greenery and online mail-order businesses.」

「At a meeting of the Board of Directors held on 15 January 2024, the Company resolved to acquire all shares of a new company to be established through a company split, specifically an incorporation-type company split, of the Inner Natural business, part of the lifestyle-space business operated by LIMグループ株式会社, and make it a subsidiary. The acquisition was completed on 1 April 2024.」

「Following the acquisition of all shares of Nicolai Bergmann株式会社 on 25 December 2023, the Company included Nicolai Bergmann株式会社 and its subsidiary, Nicolai Bergmann LTD., in the scope of consolidation.」

「Expanding its share of the landscaping business is essential to further develop and accelerate growth in the green business, and the Company aims to expand its market share by inheriting landscaping expertise and know-how. By acquiring the shares of Nicolai Bergmann株式会社 and making it a subsidiary, the Company aims to further enhance brand value, develop new products and varieties, and expand distribution channels by leveraging the Group’s corporate customers. It determined that this would enable further growth together with the Group’s flower business and decided to acquire the shares while retaining Mr. Nicolai Bergmann as Representative Director and President of the company.」

「At a meeting of the Board of Directors held on 12 November 2022, the Company resolved to establish a wholly owned subsidiary to acquire the mail-order business for ornamental trees, flowers and seedlings operated by 株式会社改良園. The Company entered into a business transfer agreement dated 18 November 2022.」

「金子園芸株式会社 has been included in the scope of consolidation because the Company acquired its shares during the first quarter of the current consolidated fiscal period, making it a subsidiary.」

「For the Group, establishing a more stable revenue base in businesses handling horticultural products, including wall and rooftop greening, in addition to the rental greenery business, remains a challenge. We established a web marketing division and intend to make medium-term investments in a range of businesses to establish new revenue bases.」

「In the retail business, demand for plants among individual customers increased as a result of telework and requests to refrain from going out. At the Farm UNIVERSAL Osaka, the opening of the third strawberry-growing greenhouse had a synergistic effect, helping to increase customer traffic and resulting in higher revenue and profit. As a result, segment revenue was ¥1,571,254 thousand, up 16.7% year on year, and operating profit was ¥77,168 thousand, compared with an operating loss of ¥60,953 thousand in the same quarter of the previous year.」

「On 31 July 2020, the Company entered into an agreement to acquire the business operated by 株式会社小林ナーセリー, which covers the production and sale of ornamental trees, flowers and seedlings, through its wholly owned subsidiary, and completed the acquisition. Although the Group had not entered the production of ornamental trees, flowers and seedlings as part of its broad horticultural operations, it determined that the acquisition was necessary to expand and grow its horticultural products business as the market continues to diversify.」

「Against this backdrop, in our core Green Business, our Group continued to focus on marketing activities to acquire new rental greenery customers and promote sales, and pursued initiatives to create synergies between flower shops and horticultural goods stores and online sales and improve profitability.」

「We pursued initiatives to open new stores, create synergies between flower shops and horticultural goods stores and online sales, and improve profitability.」

「We pursued initiatives to create synergies between flower shops and horticultural goods stores and online sales.」

「For our Group, a key challenge is to establish a more stable earnings base in businesses handling horticultural products other than rental greenery, such as wall and rooftop greening. We intend to make medium-term investments in various businesses to establish new earnings pillars.」

「Against this backdrop, in our core Green Business, our Group continued to focus on marketing activities to acquire new rental greenery customers and promote sales, and pursued initiatives to create synergies between flower shops and horticultural goods stores and online sales.」

「In the retail business, we acquired all issued shares of 園芸ネット株式会社 on 1 October 2018, making it a subsidiary, and have included it in the scope of consolidation from the second quarter of the current fiscal year.」

「At a meeting of the Board of Directors held on 8 August 2018, we resolved to enter into a share transfer agreement with 株式会社アーキネット on the same day to acquire 100% of the issued shares of the company to be newly established by 株式会社アーキネット through an incorporation-type company split to succeed to the gardening net business, hereinafter referred to as 園芸ネット株式会社, and make it a consolidated subsidiary. The acquisition was completed on 1 October 2018.」

「To further expand the Green Business, we pursued initiatives to strengthen profitability, including cost reductions, to recover the initial investment in the retail business, which is centered on operating flower shops and horticultural goods stores.」

「For our Group, a key challenge is to establish a more stable earnings base in businesses handling horticultural products other than rental greenery, such as wall and rooftop greening. We intend to make medium-term investments in various businesses to establish new earnings pillars.」

「For our Group, a key challenge is to establish a more stable earnings base in businesses handling horticultural products other than rental greenery, such as wall and rooftop greening. We intend to make medium-term investments in various businesses to establish new earnings pillars.」