International logistics and distribution led growth in the first quarter, while transport and hotels saw profits decline

In the first quarter of the fiscal year ending March 2027, consolidated operating revenue was ¥460,532 million and operating profit was ¥23,134 million, up 7.7% and 5.2% year on year, respectively. The operating margin was approximately 5.02% on a calculated basis, down roughly 0.1 percentage point from approximately 5.14% in the same quarter a year earlier. Profit growth slightly trailed revenue growth, so the results did not represent a case in which higher revenue translated directly into higher profit.

By segment, international logistics reported operating revenue of ¥216,886 million and operating profit of ¥4,451 million, with revenue up 18.7% and profit up 585.9%. Distribution also posted operating profit of ¥2,297 million, up 37.5%, while real estate posted ¥4,912 million, up 8.4%. By contrast, transport operating revenue rose just 0.1% to ¥57,707 million, while operating profit fell 18.2% to ¥8,203 million. Hotels and leisure reported operating revenue of ¥90,743 million, down 0.6%, and operating profit of ¥2,282 million, down 48.4%, indicating substantial divergence among the segments.

Against this backdrop, it is necessary to distinguish whether the increase in consolidated profit reflects broad-based improvement across the businesses or depends on a rebound from the low base in international logistics in the same quarter a year earlier. As of the first quarter, the increase in operating profit was limited to ¥1,142 million, with a sharp recovery in logistics offsetting lower profits in transport and hotels. Next time, the focus will be not only on whether higher profits in international logistics continue, but also on whether the business can absorb transport personnel and depreciation costs and slowing demand in hotels and leisure while maintaining the consolidated operating margin above 5.0%.