SG Holdings raised its full-year operating profit forecast to ¥100bn from ¥97bn and its revenue forecast to ¥1.82tn from ¥1.74tn. The delivery business went the other way: its operating profit forecast was cut to ¥73bn from ¥76bn, even though its revenue forecast rose to ¥1.105tn from ¥1.09tn.
More parcels, lower price, higher cost
The company raised its full-year parcel-volume forecast to 1.42bn from 1.39bn, with business-to-business and business-to-consumer volumes both ahead of plan. It lowered the average price forecast to ¥660 from ¥663. SG Holdings said price talks aimed at fair freight rates continue, but a growing share of small parcels such as cross-border e-commerce pulled the average below plan.
Costs rose too. Higher crude prices lifted fuel costs and the fuel surcharge burden SG Holdings bears for partner companies. It also secured transport capacity early for the year-end peak, and outsourcing costs are now expected to exceed the original assumption. Delivery operating profit for the half year to September was ¥24.9bn, down 18.0%.
SG Holdings said it will press for better unit prices and network efficiency from the second half. Its presentation says the filed tariff rises about 13.8% from January 2027, mainly through large-size parcels.
Global logistics carries the revision
The global logistics operating profit forecast rises 112.5% to ¥8.5bn from ¥4bn, with revenue raised to ¥440bn from ¥380bn. SG Holdings cites higher air freight rates tied to fuel prices and more Morrison volume as semiconductor demand grows. The logistics unit's forecast rises to ¥8.5bn from ¥7.5bn.
The net profit forecast rises ¥5bn to ¥65bn. SG Holdings says that also reflects a ¥4.5bn extraordinary gain on a sale of investment securities, which is not an operating improvement.
Interim operating profit was ¥41.44bn against the ¥36bn the company forecast in May. The year-end dividend forecast rises to ¥28 per share, taking the annual forecast to ¥55 from ¥54.