KANTSU CO.,LTD.

Business Details

Primarily targeting e-commerce and mail-order operators, this segment's mainstay is the EC & Mail-Order Logistics Support Service, which handles distribution center operations such as receiving, inventory management, and shipping on behalf of clients. It achieves standardization and efficiency in logistics operations by leveraging the in-house developed WMS "Cloud Thomas" and the checklist system "Annie." Following the segment reorganization associated with the transition to a holding company structure in April 2026, order management operations previously included in this segment were spun off into the "Commerce DX Business," and the sublease business was separated into the "Estate Leasing Business."

Recent Overview

Achieved 37.0% year-on-year sales growth and a turnaround to profitability, with clear recovery following the cyberattack

In Q1 FY2027 (ending February 2027) (March to May 2026), Logistics Services segment sales were ¥4,803 million (up 37.0% year on year), and segment profit was ¥41 million (compared to a loss of ¥46 million in the same period of the prior year), marking a turnaround to profitability. This was the result of improvement activities aimed at enhancing quality and productivity following recovery from the ransomware attack in September 2024, which drove improved customer satisfaction. Additionally, following the transition to a holding company structure in April 2026, order management operations were separated into the Commerce DX Business and the sublease business into the Estate Leasing Business. The company is also temporarily holding off on expanding logistics facilities to control rent expenses, focusing on maintaining the trend of margin improvement.

Key Products

Growth Drivers

• Increasing demand for logistics outsourcing driven by continued expansion of the EC market
• Recovery of sales from existing customers and resumption of new customer acquisition through restored trust following the cyberattack damage
• Improved operational precision and productivity through investment in labor-saving and automation using AI and robotics
• Improved value-added offerings and profitability through the business model shift "From Boxes to Wisdom"
• Growing demand for labor-saving and automation investment against the backdrop of the logistics 2024 problem
• Maintaining the margin improvement trend by controlling rent expenses through restraint on logistics facility expansion

Risks

• Risk of recurrence of cyberattacks and information security incidents (repeat of the ransomware damage in September 2024)
• Severe labor shortages and rising labor cost pressures in the logistics industry
• Profit pressure from increases in major costs such as shipping fees, transportation costs, and rent
• Slowing pace of increase in logistics demand due to deceleration in EC market growth rate
• Increased complexity in business management and performance comparison due to the transition to a holding company structure and segment reorganization
• Operating margin remains at a low level of 0.9%, requiring continued improvement in cost structure