The Sumitomo Warehouse Co., Ltd.

Business Details

An integrated logistics segment comprising Warehousing, Port Transportation, International Transportation, and Land Transportation and Others (information systems, etc.). The segment operates in collaboration with 35 consolidated subsidiaries in Japan and overseas, deploying an international logistics network covering Japan, Asia, Europe, and the Americas. Operating revenue for FY2026 (ending March 2026) was ¥185,918 million, representing approximately 95% of consolidated total revenue, making it the core business. Each operation is interrelated as part of an integrated logistics business and is treated as inseparable for management purposes.

Recent Overview

Revenue increased, but operating profit declined 3.8% year-on-year due to higher personnel expenses and depreciation

Operating revenue for the Logistics Business in FY2026 (ending March 2026) was ¥185,918 million (up 1.8% year-on-year). Warehousing revenue (up 3.9% year-on-year), Port Transportation revenue (up 3.3%), and Land Transportation and Others revenue (up 1.8%) increased, while International Transportation revenue (down 0.5%) declined. Operating profit was ¥13,538 million (down 3.8% year-on-year), as increased personnel expenses from wage hikes and higher depreciation pushed up costs. A new warehouse in Hamamatsu City was completed in January 2026, expanding domestic logistics facilities. As part of DX promotion, the company worked on operational efficiency improvements through AI utilization and development of DX-promoting personnel. For the next fiscal year (FY2027, ending March 2027), operating revenue is forecast at ¥189,000 million (up 1.7% year-on-year) and operating profit at ¥14,000 million (up 3.4%).

Key Products

Growth Drivers

• Expansion of Warehousing revenue through increased handling of high-value-added items such as temperature-controlled cargo
• Expansion of Port Transportation revenue through increased container cargo handling volume
• Contribution to Land Transportation and Others revenue from strong performance of information systems subsidiaries
• Passing on cost increases to prices through promotion of appropriate fee collection
• Expansion of domestic logistics facilities through completion of new Hamamatsu City warehouse (January 2026)
• Expansion of overseas bases in the United States, Europe, and Southeast Asia, and consideration of entry into India
• Strengthening cost competitiveness through AI-driven operational efficiency and development of DX-promoting personnel
• Promotion of sustainable growth measures based on the new medium-term management plan "Medium-Term Management Plan 2026-2030"

Risks

• Cost pressure from continued increases in personnel expenses and operating costs associated with wage hikes and inflation
• Increase in depreciation expenses accompanying expanded capital investment (¥8,200 million in FY2026, ending March 2026, up year-on-year)
• Trade friction and cargo movement stagnation risk associated with U.S. tariff increase policies
• Impact on international transportation handling volume from stagnation in the Chinese real estate market and economic slowdown
• Supply chain disruption and sluggish logistics demand growth associated with rising geopolitical risk
• Risk of surging fuel oil and other commodity prices due to deteriorating conditions in the Middle East
• Lack of robust cargo movement due to sluggish growth in domestic cargo transportation demand
• Foreign exchange fluctuation risk (impact on International Transportation revenue)