Consolidated Financial Results for the Fiscal Year Ended March 31, 2025 [Under Japanese GAAP] ( 194KB )

FY2024 Financial Results ( 506KB )

FY2024 Financial Results briefing (Q&A session) ( 73KB )

During the fiscal year under review, the Japanese economy recovered moderately, reflecting signs of a pick-up in personal consumption and capital investment. On the other hand, the outlook is becoming increasingly uncertain due to the sluggish consumer sentiment stemming from the yen's depreciation and the ongoing rise in prices stemming from labor shortages, as well as concerns over the impact of tariff measures by the Trump administration.

In the business environment surrounding our group, demand for aviation fuel remained strong due to the increase in inbound tourists and domestic travel after the turn of the COVID-19 pandemic. However, overall demand for petroleum products continued to decline, partly due to consumers' preference for savings.The Company entered the second stage of our medium-term management plan, Challenge2030 for Challenging the Future. We steadily implemented business strategies from Fiscal Year 2024 to Fiscal Year 2026, and moved forward with a variety of initiatives to accelerate growth-oriented investments.

In the fiscal year under review, our group's net sales decreased by 0.8% year on year to 654,404 million yen. Operating profit decreased by 30.0% year-on-year to 11,808 million yen due to the revision of the unit price for fuel handling fees in the Aviation-related Business. Ordinary profit decreased by 27.5% year-on-year to 12,860 million yen, and profit attributable to owners of the parent decreased by 22.8% year-on-year to 8,656 million yen.

Our group recorded extraordinary losses (impairment losses on non-current assets including goodwill) amounting to 1,283 million yen, because SAN-AI OBBLI GAS BANSHU CO., LTD. (location: Takasago City, Hyogo Prefecture), one of LPG Sales retailing companies, was difficult to achieve the revenue initially expected.

In the petroleum-related business, while gasoline sales volume remained firm, kerosene, diesel fuel, and other oil types trended downward, and overall petroleum products were down year-on-year.
The status of each division is as follows.
In the petroleum retail division, profits fell year-on-year due to fell volume in directly managed Service Stations.
In the petroleum wholesale business, gross profit was higher than the previous fiscal year due to improved margins, but profits were lower than the previous fiscal year due to an increase in selling, general and administrative expenses.
In the industrial fuel oil sales division, both sales volume and profits were lower than in the previous fiscal year due to intensifying price competition.
In the Industrial lubricants sales division, income from commissions increased due to gas engine maintenance for power generation and endoscopy inspections for wind power generation. On the other hand, profits fell year-on-year due to the recording of a provision of allowance accounts due to the interruption of wind power plant development surveys.

Consequently, net sales in the Petroleum-related business decreased by 1.0% year-on-year to 560,251 million yen, and segment profit decreased by 11.6% year-on-year to 7,377 million yen.

In the Chemical Products-related business, sales volume for all products remained largely unchanged from the previous year. Profit margins improved because of supply chain optimization, such as purchasing and inventory management.
The situation by product is as follows.

In automotive-related products, although the sales volume of car wash products, the company's own products, fell year-on-year, profits increased year-on-year due to improved profit margins. Sales volume and profits for biocide products both remained at the same level as the previous fiscal year.
In solvent and industrial chmicals, profits rose year-on-year due to a recovery in profit margins.
In adhesives, profits were up year-on-year due to a recovery in sales volume for adhesives and packaging tape applications.
In other areas, sales of high-grade alcohol as performance chemicals were strong.

Consequently, net sales in the Chemical Products-related Business increased by 4.7% year-on-year to 12,671 million yen, and segment profit increased by 18.7% year-on-year to 1,144 million yen.

In LPG sales business, sales volume remained at the same level as the previous term, amid a general downward trend in demand due to the extremely hot summer and other factors. The status of each division is as follows.
In the retail division, although unit consumption declined, mainly in household use , profits rose from the previous fiscal year due to an improvement in profit margins resulting from thorough fee management.
In the wholesale division, profits increased year-on-year due to the impact of inventory valuations.

In the natural gas sales business, sales volume for household uses increased year-on-year due to the acquisition of Imari Gas Co., Ltd. (*). In the Commercial and Industrial Products department, sales volume fell slightly from the previous fiscal year due to a decline in demand from some customers. As a result, in the natural gas sales business sales volume and profits fell below the previous fiscal year due to a decrease in industrial sales volumes.

Consequently, net sales in the Gas-related business increased by 9.2% year-on-year to 61,303 million yen due to higher sales prices for LPG. Segment profit increased by 21.6% year-on-year to 2,110 million yen due to a recovery in profit margins in LPG sales business.

(＊)In May. 2024, the company acquired shares of Imari Gas Co., Ltd., which supplies city gas and sells LPG to retailers in Imari City, Saga Prefecture.

In the Aviation-related business, air travel demand was generally strong due to an increase in foreign visitors to Japan and so on.
The volume of fuel handled at Haneda Airport was sluggish in the first half on domestic airline due to bad weather but began to recover in the second half. On international airline, sales were strong due to the resurgence of flights from the COVID-19 and the launch of new long-haul routes in line with inbound demand. As a result, the combined volume of fuel handled on domestic and international flights increased by about 8% year-on-year.
However, both sales and profits were significantly lower than the previous fiscal year due to the revision of the unit price of fuel handling fees at Haneda Airport.

Consequently, net sales in the Aviation-related business decreased by 25.3% year-on-year to 14,430 million yen, and segment profit decreased by 58.1% year-on-year to 3,669 million yen.

In the Other Businesses segment, in the Clean Tech Business, which handles cleaning and surface treatment of metal products and other products, orders for precision cleaning treatment remained sluggish in the first half due to production adjustments by semiconductor manufacturing equipment manufacturers and other factors, but recovered in the second half. As a result, both sales and profits exceeded the previous fiscal year. In the construction industry, orders were sluggish, and sales and profits were lower than in the previous fiscal year.

Consequently, net sales in the Other businesses decreased by 4.6% year-on-year to 5,746 million yen due to a decline in orders in the construction industry. Segment profit increased by 18.5% year-on-year to 864 million yen due to a recovery in orders in the Clean Tech business.