■ Medium-term Management Plan 1. The goal of the medium-term management plan The outline of the "Medium-term Management Plan 2025" (fiscal year from February 2024 to February 2026) that Veru, Inc. is currently working on is as follows. The company believes that the market environment will change after the end of the corona pandemic. Regarding the changing societal situation, the company assumes various management challenges arising from the normalization of economic activities and the consequent labor market shortages, uncertain future risks, the rise of marketing needs due to the evolution of technology and the increasing complexity of customer touchpoints. As for the company's market, it predicts the importance of securing highly skilled personnel through marketing technology utilization and the increase in effective BPO demands in both the defensive and offensive areas amid various management challenges, as well as rising labor costs due to a shortage of human resources and the automation of customer correspondence. In April 2023, the company established a new corporate brand slogan, "How will you respond to that voice?". Although it has been listening to the needs of society, companies, and consumers by listening to the people's voices and solving problems with meticulous communication, the problems that can be solved by interpreting the "voice" are becoming more multifaceted and complex due to technological innovations. Meanwhile, the new epoch of "NEW BPO," which the company group aims to achieve as a slogan, is to model the process of turning many of the voices gathering at the CX site (customer response department) into values related to management decisions and to lead to the optimal action by utilizing data. NEW stands for Next, Engage, and Widen, aiming to delve into all the voices (maximizing the performance of 40,000 people, enhancing the utilization of data), connect stakeholders (collaboration with partners), and broaden the sphere of influence (growth strategy for expanding into new business domains). In other words, it is considered that the company aims to utilize a wide range of collaborations with companies more than in the past, not only in contact centers but also in marketing and other areas. In the "Medium-term Management Plan 2025," the company has set three key policies and plans to make additional investments of a total of over 15 billion yen for three years from fiscal year 2024 to achieve them. As a result, it has set quantitative targets to achieve sales revenue of 180 billion yen (an average year-on-year increase of 7.1%), operating profit of 16.5 billion yen (an operating margin of 9.2%), net income after tax of 11 billion yen (an average year-on-year increase of 11.8%), ROE of 14.4%, and a dividend payout ratio of 50% for the final fiscal year ending in February 2026. It is a goal-setting that exceeds the sales revenue average annual increase of 5.3% and the tax-exempted income average annual increase of 8.7% in the previous medium-term management plan, based on the assumption regarding the changing social and economic environment. Although the first year of the plan, the fiscal year ending in February 2024, started off tough due to the unexpected decrease in high-profit corona-related businesses, the company aims to achieve its target for the final year by investing in organic growth (growth by internal resources) and reform through generated AI after the fiscal year ending in February 2025.
1. "Shibusawa 2030 Vision". Inheriting the spirit of Eiichi Shibusawa who believed that only profit pursued with the right principles can last and enrich society, and sharing this spirit as a core value, Shibusawa Warehouse <9304> strives to contribute to sustainable growth of society by balancing morality and economy, enriching the future of all stakeholders, and growing as a company. They aim to achieve this social mission by supporting the realization of a sustainable and prosperous society beyond logistics through the creation of new value. They aim to become a value partner by transitioning from pursuing efficiency to creating value and by generating new value in their customers' business activities. The product structure includes operating income of 4.01/12.88/0.06 billion yen for 100-300 billion yen products respectively and the overall sales volume in 23 is 18,000 kiloliters, with a year-on-year growth of +28.10%.
The weather is good today The weather is good today.
Please use your Futubull account to access the feature.
Overview of "Shibusawa 2030 Vision": In 2021, the company formulated the "Shibusawa 2030 Vision" to strengthen competitiveness, expand its service area, and promote ESG management for sustainable corporate value enhancement. The plan is divided into three stages, and the company aims to provide category No.1 logistics services by deepening and pursuing strengths such as specialty in consumer goods logistics such as beverages and daily necessities, dominant areas such as Tokaido, Sanyo, and Chiba, and advanced operations of small-lot and multi-item cargo. As for expanding its service area, they will provide an outsourcing service beyond logistics, including responding to e-commerce, designing packaging materials, ordering and receiving affairs, inventory allocation planning, data processing analysis, and settlement agency service, in addition to enhancing existing services, including distribution processing. They plan to actively promote real estate business and build a smart and strong portfolio. To promote ESG management, they plan to establish a corporate governance with stakeholders for coexistence and mutual prosperity, a labor environment and corporate culture in which diverse personnel feel motivated to work, and effective corporate governance. They aim to evolve into a partner that creates new value across all their customers' business activities by advancing innovation throughout the entire supply chain through the realization of such vision.
Taking steps towards realizing "Shibusawa 2030 Vision" through strengthening competitiveness, expanding the service area, and pursuing ESG management for sustainable corporate value enhancement, the company revised its goal to 1,000 billion yen of operating revenue and 65 billion yen of operating profit, and 70 billion yen of ordinary profit for the year ending March 2031, by continuing to deepen and pursue strengths, including specialty in consumer goods logistics such as beverages and daily necessities, dominant areas such as Tokaido, Sanyo, and Chiba, and advanced operations of small-lot and multi-item cargo. The company also plans to enhance existing services, including distribution processing, and provide outsourcing services beyond logistics, such as responding to e-commerce, designing packaging materials, ordering and receiving affairs, inventory allocation planning, data processing analysis, and settlement agency service. They aim to actively promote real estate business and build a smart and strong portfolio.
Due to strong business performance, the company revised its goal for the year ending March 2031 as follows: 1,000 billion yen of operating revenue and 65 billion yen of operating profit, and 70 billion yen of ordinary profit by deepening and pursuing strengths such as specialty in consumer goods logistics such as beverages and daily necessities, dominant areas such as Tokaido, Sanyo, and Chiba, and advanced operations of small-lot and multi-item cargo. They also plan to enhance existing services, including distribution processing, and provide outsourcing services beyond logistics, such as responding to e-commerce, designing packaging materials, ordering and receiving affairs, inventory allocation planning, data processing analysis, and settlement agency service. They aim to actively promote real estate business and build a smart and strong portfolio.
A retrospective of "Medium-term Management Plan 2023": As a key measure of the first stage of the "Medium-term Management Plan 2023", they worked to start new businesses such as opening new warehouses and consigning internal logistics in factory operations, and expand existing businesses and acquire new transportation in harbour and land transportation. As a result, they achieved their initial plan for operating revenue and ordinary profit for the year ending March 2024. They also achieved their goal for operating profit in the year ended March 2023, despite special factors, thanks to the results of working on these key measures.
As a key measure of the first stage of the "Medium-term Management Plan 2023", they worked to start new businesses such as opening new warehouses and consigning internal logistics in factory operations, and expand existing businesses and acquire new transportation in harbour and land transportation.
(Author: FISCO guest analyst Nobumitsu Miyata)