During the fiscal year ended March 31, 2025, the Japanese economy followed a mild trend of recovery, with contributing factors including improvement in the employment and income environment, and increases in personal consumption and capital investments. On the other hand, the economic outlook has remained uncertain, as in addition to concerns about the impact of ongoing rising prices on consumer spending, there are potential effects from future U.S. trade policies and risks such as the prolonged Russia-Ukraine situation.
Under such circumstances, Taiheiyo Kouhatsu Group (the "Group") sought to fortify its earnings infrastructure and secure profit by actively engaging in sales activities in its respective business domains.
As a result, regarding the consolidated business performance for the fiscal year ended March 31, 2025, net sales increased by 2.4% year on year to 42,076 million yen, largely due to an increase in sales volume of imported coal.
On the other hand, in terms of profit, operating profit decreased by 29.6% to 857 million yen, ordinary profit decreased by 44.7% to 566 million yen and profit attributable to owners of parent decreased by 39.0% to 382 million yen, largely due to soaring raw material prices in the fertilizer business.
In regard to the outlook for the Japanese economy going forward, while a gradual recovery is expected to continue amid the improved employment and income environment. However, the economic outlook remains uncertain, as concerns persist about the impact of ongoing rising prices on consumer spending, as well as potential effects from future U.S. trade policies.
Under such circumstances, the Group aims to establish a stable management foundation underpinned by its corporate philosophy of, "we enable people to realize abundant lifestyles by positively engaging in our business activities while fulfilling our corporate social responsibility." To such ends, we will continue to enlist an approach entailing appropriate business selection and concentration in our respective business domains while seeking to streamline our operations.
We ask all shareholders for their continued warm understanding, increased guidance and encouragement going forward.
TAIHEIYO KOUHATSU INCORPORATED
Yoshinori Itagaki, President