Message from the President
To Our Shareholders
Thank you for your continued support.
Results for the First Half of the Fiscal Year Ending March 2025
Net sales for the first half of the fiscal year ending March 31, 2025, rose 9.1% year on year to ¥169,689 million. This increase was due to factors including a recovery in air cargo unit prices and an increase in volume in International-Related, particularly in North America. Other positive factors included an increase in Airport-Related volume and unit price increases, reflecting a recovery in international passenger flights, higher warehousing and distribution volume with firm customer demand and a new operating facility, and our ongoing wins of new large-scale spot contract services.
We swung to a net positive operating income of ¥12,019 million (up 46.9% year on year) with increases in volume, particularly in Airport-Related and International-Related. In addition, volume increases in Steel-Related in our Environment division, reduced fuel expenses, and ongoing efficiency gains contributed to this positive result. Ordinary income amounted to ¥12,116 million (up 39.1%), while profit attributable to owners of parent amounted to ¥9,722 million (up 75.7%), owing in part to disposals of strategic shareholdings.
Future Outlook
As the KONOIKE Group enters the final year of our medium-term management plan, we continue to improve profitability under a basic policy of leveraging synergies between people and technology, striving to go beyond expectations in response to changing times. At the same time, we endeavor to develop initiatives to strengthen our growth potential toward achieving our 2030 Vision.
In July 2024, the Company established and acquired shares in design packaging joint ventures in Canada and Mexico.
In India, which we view as a key region, we resolved to acquire shares of an Indian medical equipment sterilization company in June 2024. In September, we resolved to make Ferro Scrap Nigam Limited, an Indian state-owned steel slag processing company, a wholly owned subsidiary.
We continue efforts to establish a base of medium- to long-term earnings in the Indian market, where we expect to see a large increase in demand and high growth in the future.
Conclusion
As announced previously, we revised our annual dividend forecast to 96.00 yen per share for the fiscal year ending March 31, 2025. We will continue to allocate cash generated to growth investments as we exercise financial discipline, aiming to increase dividends through stable dividend payments and earnings growth in support of higher shareholder returns.
I ask for your continued support as we strive to move forward.
Representative Director, Chairman, President and Chief Executive Officer 