SG Holdings Co., Ltd. (TSE: 9143), the parent of parcel-delivery and logistics group Sagawa Express, reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under J-GAAP. Operating revenue rose 11.2% year-on-year to a record ¥1,644,762 million from ¥1,479,239 million, a second consecutive year of double-digit growth. Operating profit climbed 2.7% to ¥90,247 million, ordinary profit rose 3.3% to ¥91,782 million, and net profit attributable to owners of the parent edged up 1.6% to ¥59,066 million. Basic EPS came in at ¥98.17 versus ¥92.92, ROE improved to 10.5% from 10.0%, and the operating margin held at 5.5%. Comprehensive income surged 24.0% to ¥73,202 million.
Morrison Express deal powers record revenue
The defining feature of the year was SG Holdings' international expansion through the acquisition of Morrison Express Worldwide, an international freight-forwarding business, and a cluster of related entities. In total 34 newly consolidated companies — including Morrison Express, Maxyork Investments and MEC Labuan — were added to the group during the year, while 14 companies were deconsolidated, among them C&F Logi Holdings and Shanghai Hongdi. The reshuffle re-weights the portfolio toward cross-border freight forwarding and away from certain domestic and regional units, and it was the single largest driver of the double-digit top-line gain.
Profit growth lags revenue on domestic margins
While operating revenue jumped more than 11%, operating profit advanced only 2.7% — a clear signal that the freight-forwarding business SG acquired carries thinner margins than the group average, and that core domestic parcel delivery faced cost pressure. The 5.5% operating margin was essentially flat year-on-year, even as the revenue base widened sharply. Ordinary profit of ¥91,782 million (+3.3%) ran slightly ahead of operating profit, helped by non-operating items, while net profit attributable to owners rose just 1.6% to ¥59,066 million as the larger consolidation perimeter brought additional minority interests and integration costs.
Balance sheet expands; large investing outflow funds M&A
Total assets stood at ¥1,229,017 million at period-end, with net assets of ¥548,672 million and an equity ratio of 44.4%; book value per share was ¥915.31. Operating cash flow was a healthy ¥124,824 million, but investing activities consumed ¥216,758 million — a large outflow that reflects the Morrison Express and related acquisitions. The combination of strong operating generation and heavy M&A spending left period-end cash and equivalents at ¥92,896 million. The deals lift SG's international footprint at the cost of a temporarily elevated investment burden.
Dividend raised to ¥53.00; FY27 dividend guided to ¥54.00
The FY3/2026 annual dividend was raised to ¥53.00 per share (¥26.00 interim + ¥27.00 year-end) from ¥52.00, for a consolidated payout ratio of 54.0% — a relatively shareholder-friendly level for the sector. For FY3/2027 the company guides a further increase to ¥54.00 annual (¥27.00 interim + ¥27.00 year-end), signaling confidence in continued cash generation even as it integrates the newly acquired forwarding operations.
FY27 guidance: revenue up 5.8%, profit up 7.5%
For FY3/2027, management guides operating revenue of ¥1,740,000 million (+5.8%), operating profit of ¥97,000 million (+7.5%), ordinary profit of ¥95,000 million (+3.5%), and net profit attributable to owners of ¥60,000 million (+1.6%), with EPS of ¥99.72. The full-year profit acceleration is back-end loaded: management flags a softer first half, with operating profit guided to fall roughly 7% in H1 before recovering over the full year as the Morrison Express integration matures and domestic margins stabilize. The plan keeps SG on a path of steady, M&A-assisted revenue growth while it works to lift the profitability of its enlarged international network.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Operating revenue (¥M) | 1,644,762 | 1,479,239 | +11.2% |
| Operating profit (¥M) | 90,247 | 87,847 | +2.7% |
| Ordinary profit (¥M) | 91,782 | 88,867 | +3.3% |
| Net profit attrib. to owners (¥M) | 59,066 | 58,120 | +1.6% |
| Basic EPS (¥) | 98.17 | 92.92 | +5.6% |
| ROE | 10.5% | 10.0% | +0.5pp |
| Annual dividend (¥) | 53.00 | 52.00 | +1.9% |
| FY27 operating revenue guidance (¥M) | 1,740,000 | — | +5.8% |
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