Revenue increased, but the operating margin declined due to higher outsourced logistics costs

Consolidated operating revenue in FY2027-Q1 was ¥7,892 million, up 7.2% year on year, while operating profit was ¥293 million, down 17.4%. As profit moved in the opposite direction to the increase in operating revenue, the operating margin declined by approximately 1.1 percentage points, from approximately 4.8% in the same period of the previous year to approximately 3.7%. Ordinary profit also fell 13.4% to ¥463 million, making it important that the deterioration in operating profitability cannot be explained solely by a temporary extraordinary loss.

By segment, the logistics business reported operating revenue of ¥7,751.822 million, up 7.6% year on year, while segment profit fell 11.5% to ¥400.463 million. The company attributed the revenue increase to higher storage, cargo handling, inland transportation and air transportation revenue, while citing higher outsourced costs, including re-storage and temporary staffing expenses, as factors behind the decline in profit. The real estate business also reported operating revenue of ¥140.944 million and segment profit of ¥58.238 million, down 11.9% and 14.2%, respectively, leaving both segments weak at the profit level.

In the previous year, the logistics business reported operating revenue of ¥14,610 million and segment profit of ¥925 million in FY2026-H1, up 3.6% and 15.9%, respectively, year on year. For FY2026 as a whole, operating revenue increased to ¥29,545 million and segment profit to ¥1,816 million. The decline in profit in FY2027-Q1 is therefore best viewed as a period in which the increase in outsourced costs exceeded revenue growth and pressured profit, rather than as a halt in growth. In FY2027-H1, in addition to whether logistics operating revenue can maintain or exceed ¥14,610 million in the same period of the previous year, the focus will be on whether segment profit can recover to ¥925 million.