Summary of Consolidated Financial Results for the Year Ended March 31, 2024 [Based on Japanese GAAP] ( 169KB )

During the fiscal year ended March 31, 2024, the Japanese economy gradually recovered after the action restrictions were lifted in May, 2023, when the COVID-19 was reclassed to category 5. However, there are concerns about the impact on the global economy of the prolonged situation in Ukraine and the growing tension in the Middle East, as well as the decline in personal consumption due to the rise in prices.

In the energy industry that surrounds our group, demand for aviation fuel has recovered due to the recovery of human flows caused by the convergence of the COVID-19 pandemic calamity and an increase in travel demand, and overall petroleum products remained almost unchanged year-on-year.
Under these circumstances, SAN-AI OBBLI Group positioned the period from fiscal year 2021 to fiscal year 2023 as a phase for restructuring the management foundation to achieve growth. SAN-AI OBBLI Group promoted building a business portfolio that responds to a low-carbon, recycling-oriented society based on our medium-term management plan, “Challenge for the Transforming Future 2030,” which is our vision for Fiscal Year 2030.

During the fiscal year ended March 31, 2024, net sales increased by 1.8% year-on-year to 659,588 million yen. Operating profit increased by 10.9% year-on-year to 16,873 million yen due to strong performance in the aviation-related business, ordinary profit increased by 10.6% year-on-year to 17,741 million yen, and profit attributable to owners of parent increased by 2.9% year-on-year to 11,217 million yen.

Results by business segment are as follows.

In the Petroleum-related business, sales volume remained unchanged year-on-year, but margins were difficult to maintain.
The situation by each division is as follows.
In the Petroleum retail division, both sales volume and earnings in directly managed Service Station decreased year-on-year.
In the Petroleum wholesale business, although sales volume slightly exceeded year-on-year, profits decreased due to a narrowing of profit margins.
In the Industrial fuel oil sales division, despite efforts to acquire new customers, both sales volume and profits decreased year-on-year due to a decrease in sales volume to existing customers.
In the industrial lubricants oil sales division, profits increased year-on-year due to an increase in commission income from gas engine maintenance and wind power generation endoscopy.

Consequently, net sales in the Petroleum-related business increased by 2.0% year-on-year to 566,011 million yen. Segment profit decreased by 12.9% year-on-year to 8,348 million yen, mainly due to sluggish performance in the petroleum retail division and Petroleum wholesale business.

In the Chemical Product-related business, sales volume of each product remained at the same level as the same period of the previous year.
The status of each product is as follows.

In Automotive-related products, profits increased year-on-year due to strong sales of water-repellent coating for car wash machines that are the company’s own products.
In the Biocide, despite a decline in sales volume to applications such as metalworking oils due to a decrease in operating rates at automotive-related plants in line with a shortage of parts, profits rose year-on-year due to a recovery in profit margins.
In Solvent and Industrial chemicals, although sales volume increased year-on-year, profits decreased due to a decline in profit margins.
In tackifier, decreased year-on-year due to lower sales volumes for petroleum resin and packaging tape applications.

Consequently, net sales in the Chemicals-related business decreased by 0.9% year-on-year to 12,098 million yen. Segment profit decreased by 15.2% year-on-year to 964 million yen due to an increased in personnel expenses.

In LPG sales businesses, sales volume decreased in both the Retail division and Wholesale division.
In the Retail division, although unit consumption declined mainly for household use due to the heat wave during the summer, profits increased year-on-year due to the acquisition of new customers and the acquisition of retail goodwill, which resulted in an increase in the number of customers and an improvement in profit margins. However, the company invested to expand the number of retail customers, including the acquisition of retail goodwill, and increased telecommunications charges and personnel expenses due to the installation of telecommunications devices using LPWA (*). As a result, profits decreased year-on-year.
In the Wholesale division, profits decreased significantly due to the impact of inventory valuations during the six months ended September 30,2023, but it has been on a recovery trend since October 1 to March 31, 2024.

(＊)Abbreviation of LPWA: Low Power Wide Area, a communication system that can save power and cover a wide area

In the Natural gas business, despite a decline in residential demand, sales volume increased year-on-year in the commercial and industrial sectors due to the acquisition of new customers.

Consequently, net sales in the Gas-related business decreased by 8.0% year-on-year to 56,134 million yen due to the decline in sales prices. Segment profit decreased by 21.0% year-on-year to 1,735 million yen due to an increase in amortization and personnel expenses related to retail goodwill and capital investment.

In the Aviation fuel business, air travel demand was strong due to an increase in foreign visitors to Japan and reclassify to category 5 of COVID-19 of infectious diseases.
Demand for air travel at Haneda Airport remained at the same level as in FY2019 before the COVID-19 pandemic on domestic airline. On international airline, demand at Haneda Airport increased significantly due to an increase in the number of foreign visitors to Japan. As a result, the volume of fuel handled on both domestic and international airline increased by about 20% compared to FY2019, prior to the COVID-19 pandemic.

Consequently, in the Aviation-related business, net sales increased by 43.2% year-on-year to 19,320 million yen due to an increase in the volume of fuel handled at Haneda Airport and an increase in the unit price of fuel handling fees. Segment income increased by 132.5% year-on-year to 8,756 million yen.

In the Other Businesses, in the Clean tech business, which involves cleaning and surface treatment for metal products and other products, orders for precision cleaning treatment remained sluggish due to production adjustments by semiconductor manufacturing equipment manufacturers and other factors, and both sales and profits decreased year-on-year. In the construction industry, net sales were at the same level as the previous year, but profits decreased year-on-year.

Consequently, net sales in the Other businesses decreased by 5.4% year-on-year to 6,024 million yen due to the sluggish performance of the Clean Tech Business, and segment income decreased by 36.7% year-on-year to 729 million yen.