Weakness in the port transportation and warehousing businesses and fixed-cost burden

「As a result, revenue increased to ¥908 million, up ¥65 million year on year (107.8%), while operating profit increased to ¥73 million, up ¥45 million (260.0%), resulting in higher revenue and profit.」

「Although the Kobe-area warehouses fell short of the plan set at the beginning of the period, they returned to profitability from an operating loss in the previous fiscal year.」

「Higher fixed asset taxes and depreciation expenses for the Hyogo Futo Logistics Center, together with surging personnel and materials costs for operations, also pressured profit.」

「Meanwhile, higher depreciation expenses for equipment and machinery and rising labor costs pressured profit. As a result, revenue was ¥815 million and the company posted an operating loss of ¥1 million.」

「In the warehousing business, handling volumes at the hazardous-goods warehouses in the Kobe and Himeji areas remained at approximately the previous fiscal year's level. In Kobe, however, revenue from cargo handling and ancillary services declined in line with the decrease in import and export cargo handled by the port operations business. In Himeji, the decline in steel handling volumes caused sales at general warehouses to remain sluggish. Consequently, revenue decreased 4.4% year on year to ¥1,197 million. Operating expenses also increased, including depreciation expenses for the hazardous-goods warehouse opened last November, and operating profit fell 57.4% to ¥54 million, resulting in lower revenue and profit.」

「The new hazardous-materials warehouse established in November last year incurred higher depreciation expenses, while administrative expenses required to operate the facility, including utility costs, also increased.」

「Operating profit was ¥22 million, down 61.5% year on year, partly due to higher costs, including depreciation of the Hyogo Futo Logistics Center.」

「As a result, revenue increased to ¥1,660 million, up ¥156 million from the previous fiscal year, or 110.4%, while operating profit increased to ¥70 million, up ¥47 million, or 311.3%, resulting in higher revenue and profit.」

「In the warehouse business, although handling of general cargo declined, the company’s focus on sales activities for hazardous materials led to smooth operations at the hazardous-materials warehouses in the Kobe and Himeji areas. In November 2022, the company also added one hazardous-materials warehouse building at the Hyogo Futo Logistics Center. In addition, the acquisition of the site for the Hyogo Futo Logistics Center at the end of the previous fiscal year and other factors reduced costs substantially and significantly improved the profit margin. As a result, revenue increased to ¥1,253 million, up 14.9% year on year, while operating profit increased to ¥128 million, up 126.7% year on year.」

「As a result, revenue increased to ¥831 million, up 17.4% year on year, and operating profit increased to ¥96 million, up 166.4% year on year, resulting in higher revenue and profit.」

「In the warehousing business, handling of general cargo in the Kobe area declined partly due to logistics stagnation caused by the COVID-19 pandemic, but steel-material handling at the Himeji warehouse increased, and operations at the Hyogo Pier Logistics Center proceeded smoothly, including the launch of a new project handling high-value-added dangerous-goods cargo. In addition, lower rent and other cost reductions resulting from the acquisition of the Hyogo Pier Logistics Center site at the end of the previous fiscal year contributed. As a result, revenue was ¥420 million, up 17.7% year on year, and operating profit was ¥57 million, up 210.1%.」

「As a result, revenue increased to ¥1,503 million, up ¥61 million from the previous fiscal year, or 104.3%, while operating profit declined to ¥22 million, down ¥44 million, or 33.7%, resulting in higher revenue but lower profit.」

「In the warehousing business, difficult conditions continued for general warehouses due partly to logistics stagnation caused by the COVID-19 pandemic, but sales activities focused on dangerous-goods warehouses enabled the dangerous-goods warehouse at the Hyogo Pier Logistics Center to operate smoothly. Revenue increased to ¥1,090 million, up 2.0% year on year, and operating profit rose to ¥56 million, up 19.8%, aided by the cost reduction from shifting operations to the Hyogo Pier Logistics Center following the sale of the Maya warehouse in the previous fiscal year.」

「In the warehousing business, special cargo such as dangerous goods matched the new facilities suited to current market needs and helped lift performance. However, the effects of the logistics stagnation that began last year continued, making conditions difficult for general warehouses. As a result, lower handling volumes reduced revenue to ¥708 million, down 2.0% year on year. Nevertheless, growth in special cargo supported earnings, resulting in operating profit of ¥36 million, up 14.7%.」

「In the standalone warehousing business, focused sales activities for hazardous-goods warehouses proved effective. The sale of Maya Warehouse and the shift of operations to the Hyogo Futo Logistics Center also reduced costs. As a result, revenue increased 0.7% year on year to ¥357 million, while operating profit increased 262.7% to ¥18 million.」

「As a result, the full-scale operation of the new warehouse offset the negative effects of the COVID-19 pandemic. Sales increased to ¥1,442 million, up ¥50 million year on year, or 103.6%, while operating income rose substantially to ¥67 million, up ¥50 million year on year, or 404.8%.」

「In the warehousing business, work-related revenue declined due to lower volumes of import and export cargo handled in the port operations business, but the dangerous-goods warehouse at the Hyogo Pier Logistics Center, which began operations in January 2020, operated smoothly as a new earnings base. Revenue increased to ¥1,069 million, up 2.7% year on year. Despite higher depreciation expenses for the new warehouse, efforts to reduce administrative expenses resulted in operating profit of ¥47 million, up 31.4%.」

「In the warehouse business, growth at the hazardous-materials warehouse in the Himeji area was constrained, while the other general-goods warehouses also struggled in increasingly difficult conditions. Meanwhile, the Hyogo Futo Logistics Center, which began operations as a newly built facility at the end of the previous fiscal year and combines hazardous-materials and general-goods warehouses, began to drive performance despite the challenging environment. As a result, revenue increased to ¥722 million, up 5.1% year on year. Although depreciation expenses for the new warehouse also increased, the company worked to further reduce administrative expenses and posted an operating profit of ¥31 million, up 28.4% year on year.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses declined as export handling volumes in the port operations business fell, but the dangerous-goods warehouse performed steadily and rental warehouse revenue provided support. As a result, revenue was ¥354 million, up 5.4% year on year, while operating profit declined to ¥5 million, down 61.3%, due to higher costs, including depreciation expenses for the Hyogo Pier Logistics Center, which began operating in January 2020.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses declined in line with lower volumes of import and export cargo handled in the port operations business, but the dangerous-goods warehouse in the Himeji area, which began operating in September of the previous fiscal year, operated smoothly during the current period. Revenue therefore increased to ¥1,040 million, up 4.1% year on year, and operating profit rose to ¥35 million, up 5.6%.」

「In the warehousing business, the dangerous-goods warehouse in the Himeji area continued to perform well, and new warehouse land was secured at Hyogo Pier in Kobe Port, with part of it beginning operations as a rental warehouse. Although handling volumes declined to 56 thousand tonnes, down 21.2% year on year, handling of high-value-added cargo and the launch of the rental warehouse contributed to higher revenue of ¥687 million, up 7.7%. Operating profit also increased to ¥24 million, up 112.9%.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses remained firm, and the dangerous-goods warehouse in the Himeji area, which began operations in August 2018, reached full operation. Revenue was ¥336 million, up 2.4% year on year, and operating profit was ¥13 million, up 17.3%.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses increased in line with higher volumes of import and export cargo handled in the port operations business, and the dangerous-goods warehouse in the Himeji area, which began operating in September, also contributed. Revenue therefore increased to ¥999 million, up 7.9% year on year, while operating profit rose substantially to ¥33 million, up 464.6%.」

「In the warehousing business, handling of import cargo, supported by stable domestic economic conditions, provided a foundation, while handling of export cargo grew strongly against the backdrop of the weaker yen. In the Himeji area, the company sought to move away from steel-material warehousing and completed and began operating the area's first dangerous-goods warehouse in September. As a result, handling volumes recovered substantially, leading to higher revenue of ¥638 million, up 4.5% year on year. In addition, the effects of reducing costs such as warehouse operations resulted in operating profit of ¥11 million, compared with an operating loss of ¥0 million in the same period of the previous year, marking a return to profitability.」

「In the warehousing business, work-related revenue at the Kobe-area warehouses increased as revenue in the port operations business rose, and efforts to reduce administrative expenses also contributed. Revenue was ¥328 million, up 6.1% year on year, and operating profit was ¥11 million, up 684.3% year on year.」

「However, despite efforts to improve profitability, the company posted an operating loss of ¥3 million (compared with a ¥38 million loss in the previous fiscal year), falling short of contributing to profit.」

「Partly reflecting the effects of reviewing management and operations following the organizational integration of the Kobe and Osaka logistics centers, operating income was ¥6 million, compared with an operating loss of ¥23 million in the previous year.」

「Revenue increased to ¥610 million, up 3.1% year on year, but the company was unable to fully cover administrative expenses. Although the operating loss narrowed to ¥0 million from ¥25 million in the previous year, the increase in revenue did not yet contribute to profit.」

「In the warehousing business, work-related revenue at both the Kobe and Osaka logistics centers increased as revenue in the port operations business rose, and the Maya warehouse operated smoothly. As a result, revenue was ¥309 million, up 4.8% year on year, and operating profit was ¥1 million, compared with an operating loss of ¥8 million in the same period of the previous year.」

「As a result, cargo handling volume fell sharply to 76.5% of the previous fiscal year’s level, and sales declined to ¥1,175 million, down ¥46 million year on year, or 96.2%. Repairs to ageing facilities and higher administrative expenses also contributed to an operating loss of ¥38 million, compared with an operating loss of ¥10 million in the previous fiscal year.」

「In the warehousing business, although a base level of fixed cargo was secured individually, handling revenue declined along with the decline in sales in the related port transportation business. Despite efforts to reduce administrative expenses, the Company remained unable to absorb its fixed-cost burden. As a result, sales were ¥891 million, down 3.8% year on year, and the operating loss was ¥23 million, compared with an operating loss of ¥6 million in the same period of the previous year.」

「In the warehousing business, the company secured a base volume of recurring cargo and pursued new business, but handled volumes remained under severe pressure due to weakness in the related port transportation business. As a result, revenue was ¥592 million, down 4.0% year on year. Despite efforts to reduce expenses, the burden of fixed costs remained heavy relative to stagnant revenue, resulting in an operating loss of ¥25 million, compared with operating income of ¥1 million in the previous year.」