Message from the President
To Our Shareholders
Thank you for your continued support.
Interim Results for the Fiscal Year Ending March 31, 2024
During the first half of the fiscal year ending March 31, 2024, we saw an increase in transaction volume related to the recovery in international passenger flights in our Airport-Related Business, an increase in unit prices, mainly for production contract work, a recovery in production among our clients and increased production due to the hot weather, and wins of large-scale project orders in our engineering-related business. Despite these factors having a positive effect on sales, the decline in demand for ocean and air cargo and weakening cargo rates were significant. As a result, net sales amounted to ¥155,572 million, slightly lower than the previous fiscal year.
Operating income amounted to ¥8,180 million, up 10.9% year on while, while ordinary income and profit attributable to owners of parent amounted to ¥8,712 million and ¥5,532 million, increases of 4.6% and 7.5%, respectively. Despite continued price hikes in fuel prices and high electricity costs, we achieved these results due to the impact of higher sales, mainly in the Airport-Related Business, the receipt of appropriate unit prices, and improved operational efficiencies.
Outlook
The KONOIKE Group is entering the second year of our medium-term management plan, which concludes at the end of the fiscal year ending March 31, 2025. We intend to achieve the goals set under this plan by expanding our businesses and improving profitability. To this end, we intend to resolve the 2024 problem and other current company-wide issues, offer high-value-added services, develop new business models, and otherwise clarify our contracting and logistics strategy for the medium and long term. We will also conduct investments to optimize our management resources.
The business environment for our Airport-Related Business has been challenging due to the significant reductions in international passenger flights. However, we are seeing the beginnings of a recovery phase with an uptick in flights in the wake of eased border control measures. We will strive to strengthen our systems and expand our service domains in advance of the recovery in flights and toward the sustainable development of our ground handling business.
In Conclusion
As previously announced, we revised our full-year dividend forecast for the fiscal year ending March 31, 2024, to ¥51.00 per share. We will continue to allocate the cash we generate to investments for future growth, balanced by financial discipline. At the same time, we aim to increase dividends through stable dividend payments and earnings growth for greater shareholder returns.
I ask for your continued support as we strive to move forward.
Representative Director, Chairman, President and Chief Executive Officer 