During the fiscal year ended March 31, 2026, the Japanese economy showed a moderate recovery trend due to improvements in the employment and income environment and increased inbound demand. However, concerns about the impact on consumption due to rising prices associated with the depreciation of the yen, along with rising crude oil prices influenced by U.S. policy trends and the tense Middle East situation, continue to create an uncertain outlook.
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, 2026, net sales increased by 1.7% year on year to 42,802 million yen due to increased sales volume of biomass fuels in the trading business.
On the other hand, in terms of profit, due to increased repair costs for leased buildings in the real estate business, operating profit decreased by 0.2% year on year to 855 million yen, ordinary profit decreased by 3.6% year on year to 546 million yen, and profit attributable to owners of parent decreased by 10.2% year on year to 343 million yen.
In regard to the outlook for the Japanese economy going forward, a gradual recovery is expected due to improvements in the employment and income environment and increased inbound demand. However, the economic outlook remains uncertain, as concerns persist about the impact on consumption due to rising prices associated with the depreciation of the yen, along with rising crude oil prices influenced by U.S. policy trends and the tense Middle East situation.
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