Sugimura Warehouse Co., Ltd.

Business Details

This segment operates on two pillars: cargo warehousing (warehouse operations) and freight trucking. The Company handles warehousing, while the subsidiary Sugimura Unyu Co., Ltd. handles the freight trucking business. The main customer is Fujifilm Logistics Co., Ltd. (accounting for 37.7% of the current consolidated fiscal year's sales). The segment has 133,564 sqm of storage space and handles cargo such as food products and precision equipment. It is the core business, accounting for approximately 85% of consolidated operating revenue, with major bases in the Tokyo metropolitan area and the Port of Osaka.

Recent Overview

Revenue slightly declined, but cost efficiency drove a 4.0% year-on-year increase in segment profit

In the Logistics Business for FY2026 (ending March 2026), storage fee and cargo handling fee revenue increased due to higher volumes handled by existing customers, primarily in food products; however, orders for office relocation work did not reach the strong level of the prior period, resulting in operating revenue from external customers of ¥9,582 million, a slight decrease of ¥9 million (0.1%) year on year. Meanwhile, although personnel expenses increased in operating costs, subcontracting expenses and other costs decreased, resulting in segment profit of ¥1,084 million, an increase of ¥41 million (4.0%) year on year. In the next fiscal year, increases in repair costs associated with a large-scale repair plan at the Tokyo metropolitan area office, as well as increases in personnel and fuel costs, are expected. In addition, consideration is underway regarding the expansion, renovation, or large-scale refurbishment of the aging warehouse at the Osaka Port office to enhance its functionality, and once a policy is determined, demolition costs for existing buildings may be incurred.

Key Products

Growth Drivers

• Expansion of storage fee and cargo handling fee revenue due to increased volume handled by existing customers, primarily in food products
• Future enhancement of storage capacity and functionality through expansion, renovation, or large-scale refurbishment of the warehouse at the Osaka Port office
• Continued efficiency improvements in operating costs, including reductions in subcontracting expenses
• Reduced SG&A burden in the next fiscal year due to the completion of depreciation on the in-house core system
• Stable revenue base maintained through sustained high warehouse utilization rates

Risks

• Continued rise in business costs, primarily fuel and personnel expenses
• Worsening shortage of delivery drivers and future decline in the working population
• Increased repair costs associated with a large-scale repair plan at the Tokyo metropolitan area office (impact on next fiscal year's results)
• Risk of demolition costs for existing buildings arising when a policy is determined for expansion, renovation, or large-scale refurbishment of the warehouse at the Osaka Port office
• Customer concentration risk due to sales concentration with Fujifilm Logistics Co., Ltd. (37.7% of operating revenue)
• Risk of domestic economic deterioration and reduced customer outsourcing volume due to uncertainty in US trade policy
• Risk of cost increases due to rising prices and difficulty in negotiating price pass-throughs