TOP MESSAGE

June 27, 2024

Dear All,
We would like to thank all of our stakeholders for your continued support of the SANYEI group.

SANYEI Group is currently implementing its three-year medium-term management strategy, “SANYEI 2025,” which started in fiscal year 2023. The Group has identified “Reviewing the Group's business structure and business portfolio,” “Promoting new initiatives with a sense of speed” “Work-life balance,” and “Strengthening governance” as priority measures, and has identified three specific growth strategy pillars: 1) expanding overseas transactions, 2) strengthening EC business, and 3) pursuing sustainable business in accordance with “health and environment” as key areas of focus.
For the fiscal year ending March 31, 2024, the first year of “SANYEI 2025,” we resulted in net sales of 36.68 billion yen (down 1.97 billion yen year-on-year), Ordinary profit of 1.24 billion yen (up 0.99 billion yen year-on-year), and Profit attributable to owners of the parent of 530 million yen (up 690 million yen year-on-year).
The company has made progress in proceeding with the restructuring of low-profit businesses, one of its priority measures, and has improved its gross profit margin and reduced SG&A expenses, thereby returning to profitability on a Profit basis for the first time in the last four fiscal years.
On the other hand, sales increased due to the recovery of consumer spending and inbound demand accompanying the economic recovery, as well as the development of new products, services, and businesses. However, the Company's overseas business, one of its growth drivers, has been declining due to the economic slowdown in Europe and China, and some of its businesses have been undergoing restructuring and business portfolio reviews.

In FY2024, we will continue to work on solving these issues to achieve “SANYEI 2025” . We expect sales growth in the e-commerce business, which we have identified as a growth driver, and in the sustainable business area, where we have continued to sow seeds, we are taking steps to make the business profitable. As a result, the current full-year forecasts for FY2024 are net sales of 39,000 million yen, Ordinary profit of 900 million yen, and Profit attributable to owners of parent company of 450 million yen.

Although there are issues to be addressed, such as further strengthening measures for sales, including overseas sales, and continuing to enhance profitability by reviewing our business portfolio, we will enhance cooperation within our group and take on various challenges, including consideration of M&A in all business segments toward fiscal 2025, the final year of “SANYEI 2025” , and strive to achieve our quantitative targets of 50 billion yen in net sales and 2 billion yen in Ordinary profit.

We sincerely appreciate all of our stakeholders for your continued support and encouragement of the SANYEI Group.

Yours Sincerely,

President & CEO
MASAKI MIZUKOSHI