売上高は3事業ともに増収となった。最も売上を伸ばしたのは物流・食品加工事業で、売上高は前期比77.8%増の16,499百万円である。稲葉ピーナツの連結子会社化によりピーナッツやドライフルーツなどの豆菓子製造や卸販売事業が伸びたのに加え、スーパー・コンビニエンスストアからのOEM製造受託をはじめとしたカミッサリー事業が成長した。店舗アセット&ソリューション事業は、店舗リース取引店舗及び不動産管理テナント数拡大によるストック収益の伸長に加え、大型不動産物件の引き渡しや各種パーティやイベント復活も寄与し、売上高は同33.1%増の15,764百万円となった。持ち帰り弁当事業※は、エネルギー価格や原材料価格が高騰するなかで価格転嫁も順調に推移した。加えて、スポーツや音楽イベントなどの外販やケータリング需要も回復し、売上高は同0.5%増の16,887百万円となった。Performance trend of Harkslay <7561>.
2024 FY Performance Overview Consolidated performance for FY3/2024 of G-7 Holdings <7508> was 192,992 million yen in increased operating income of 9.1% over the previous year, and increased ordinary income of 7.4% to 7,318 million yen, and attributed to the parent company's net income of 5,175 million yen, an increase of 35.3% over the previous year. Sales were driven by the Business Supermarket Business and the Meat Business, and continued to set a new record high, exceeding the company's plan by 4.3%. However, in terms of profits, the automobile-related business was affected by a decrease in profits due to poor sales of winter tires due to a warm winter, and could not reach the company's plan, it turned to a profit increase for the second time due to the growth of other businesses centered on the Business Supermarket business. The sales cost ratio has increased by 0.8 points over the previous year due to changes in the sales composition ratio; however, the selling, general and administrative expense ratio decreased by 0.7 points due to the effect of increased earnings, and the operating margin decreased by 0.1 points to 3.6%. The main reasons for the increase/decrease of selling, general and administrative expenses were a decrease of 600 million yen in energy costs due to subsidies from rising electricity prices, and an increase of 1 billion yen in labor costs due to improvements in employee treatment and increased education costs. In addition to this, depreciation expenses increased by nearly 600 million yen due to rising construction material costs and rising costs of opening stores etc. The EBITDA margin has increased by 0.1 points from the previous year. Also, the reason for the large increase in the net income of the parent company's shareholders attributable to the current period is due to the elimination of 500 million yen in retirement benefits paid to executives that were recorded as special losses in the previous year, a decrease of 455 million yen in impairment losses, and a gain of 127 million yen on the sale of investment securities in FY3/2024. Changes in the ratio of revenues - while the revenue composition ratio increased by 0.8 points from the previous year, the selling, general and administrative expense ratio decreased by 0.7 points due to the effect of increased earnings, and the operating margin decreased by 0.1 points to 3.6%. The main factors affecting selling, general and administrative expenses were a drop of 600 million yen in energy costs due to subsidies from rising electricity rates and an increase of 1 billion yen in labor costs due to increases in treatment and education expenses for employees. Depreciation expenses also rose by just under 600 million yen due to increased costs of construction materials and opening new stores. The EBITDA (earnings before interest, taxes, depreciation, and amortization) margin rose 0.1 points from the previous year. Lastly, the reason for the increase in the net income of the parent company's shareholders attributable to the current period was due to the elimination of the 500 million yen for executive retirement bonuses paid in the previous period, the reduction of impairment losses by 455 million yen, and the realization of gains on investment securities of 127 million yen in FY3/2024.
For the year ending March 2024, revenue increased significantly by 31.3% from the previous year to 46,761 million yen. Operating profit also increased significantly by 66.8% to 2,436 million yen, ordinary profit increased by 63.9% to 2,588 million yen, and net income attributable to parent company shareholders increased by 52.8% to 1,601 million yen. All three businesses experienced an increase in revenue. Logistics and food processing business achieved the highest sales volume growth, with revenue increasing by 77.8% from the previous year to 16,499 million yen. This is due to the acquisition of Inaba Peanuts, which has led to growth in bean confectionery manufacturing and wholesale businesses, as well as the growth of the commissary business, which includes OEM manufacturing from supermarkets and convenience stores. Store asset and solution business revenue increased by 33.1% to 15,764 million yen due to the growth of stock income from store lease transactions, expansion of tenant numbers for property management, and delivery of large real estate properties and various parties and events. The takeaway lunch business* increased by 0.5% to 16,887 million yen.
All three business segments experienced an increase in revenue and a corresponding improvement in profitability. The takeaway lunch business accounted for 34.4% of total sales in the year ending March 2024, store assets and solution business accounted for 32.1%, and logistics and food processing business accounted for 33.6%, all around 30% in the first half of the year, indicating progress in business structural reform.
*The "Takeaway Lunch business" will change its segment name to the "Food Service business" in the year ending March 2025.
In terms of profit, gross profit increased significantly by 21.8% from the previous year to 152.51 billion yen due to increased revenue, covering selling, general and administrative expenses of 12.814 billion yen, a 15.8% increase from the previous year, and operating profit significantly increased. By business segment, the store asset and solution business that led performance increased by 15.6% to 1.956 billion yen. This is due to the expansion of highly profitable lease and managed stores, as well as the profit contribution from real estate sales. The logistics and food processing business achieved significant profit growth with a segment profit of 673 million yen, an increase of 216.8% from the previous year. This is mainly due to the contribution of Inaba Peanuts and the full operation of the commissary, which benefited from the chicken meat boom including fried chicken. The takeaway lunch business segment had a profit of 259 million yen, a 0.5% increase.
In the year ending March 2024, the sales composition ratio was 34.4% for the takeaway lunch business, 32.1% for the store asset and solution business, and 33.6% for the logistics and food processing business. All three business segments experienced a similar improvement in profitability, indicating progress in business structural reform.
2. Financial forecast for the March 2025 period.
For the year ending March 2025, revenue is expected to increase for the third consecutive year by 4.8% to 49,000 million yen, operating profit to increase by 0.6% to 2,450 million yen, ordinary profit to increase by 10.1% to 2,850 million yen, and net income attributable to parent company shareholders to increase by 12.4% to 1,800 million yen, continuing on from the previous year's upward trend.
The logistics and food processing business is expected to continue its strong performance and achieve the highest sales volume of the three segments for the year ending March 2024. It is expected to experience increased revenue and profit due to the expansion of existing contracts and the acquisition of new customers. Our company estimates revenue of around 17.2 billion yen, an increase of 104.2% from the previous year. The store asset and solution business aims to achieve growth by stacking leases and managing stocks, despite the pullback from the delivery of large real estate properties in the year ending March 2024. Our company estimates revenue of around 16.5 billion yen, a steady increase of 104.7% from the previous year. In the food service business (formerly the takeaway lunch business), we aim to acquire large orders for various events, including the 2025 Osaka-Kansai Expo, and orders for catering services such as conference rooms and halls for rent. We expect to achieve stable growth of around 17.2 billion yen, an increase of 101.9% from the previous year, despite the negative impact of the decreasing number of Hokka Hokka Tei stores and the trend towards cost-cutting, due to the expected recovery in catering services for various events.
* As segment estimates have not been disclosed, we have provided our own calculations. We assume that segment adjustments (elimination and overall) will remain at the same level as in the fiscal year ending March 2024 and that revenue composition ratios will be similar.
As for operating profit, we anticipate similar predictions for the fiscal year ending March 2024. Although the temporary surge in demand from large-scale real estate sales will diminish, we expect profit growth due to our business structural reform efforts since the COVID-19 pandemic outbreak, which will lead to a shift towards higher-profit businesses even in the fiscal year ending March 2025. By segment, we expect significant profit contributions from the asset and solution business for store assets accumulating stock returns, as well as from the logistics and food processing business, which has seen high factory utilization continue. We believe that the earnings forecast for the Company is based on organic growth and is somewhat conservative with a minimum level of commitment. One of the main strategies of our mid-term management goals is M&A investment, in which we budget for 12 billion yen aiming at the food production industry centering on frozen food manufacturing companies, as well as the confectionery industry, and production and processing of agricultural and livestock products. M&A may be executed by the fiscal year ending March 2025, and there is a possibility of expanding performance.
(Written by FISCO Guest Analyst, Hideo Kakuta)
