Mitsubishi Logistics: FY2027 revenue raised, profit outlook cut

Mitsubishi Logistics raised its operating revenue forecast for the year ending March 2027 by ¥10 billion from its previous outlook, while lowering its forecasts for operating profit, business profit, ordinary profit and net profit. The previous forecast, revised forecast and prior-year results are shown below. Amounts are in ¥100 million, except per-share figures, which are in yen.

Compared with the previous forecast, operating revenue is up 3.6%, while operating profit is down 11.4%, business profit down 9.8%, ordinary profit down 9.3% and net profit down 6.1%. Against the prior-year results, operating revenue is expected to rise, but operating profit, business profit, ordinary profit and net profit are all forecast to decline. The revision centers on a pattern of higher revenue but profit weighed down by costs.

The higher operating revenue forecast mainly reflects steady handling volumes in the logistics business. Mitsubishi Logistics cited costs associated with acquiring all shares in Hankyu Hanshin Express as the main reason for lowering its profit forecasts.

• Revenue: Steady activity in the logistics business prompted an increase to the operating revenue forecast.
• Profit: Advisory fees related to the share acquisition and post-merger integration costs are expected to be recorded as selling, general and administrative expenses.
• Forecast impact: These costs were not included in the previous forecast, leading Mitsubishi Logistics to cut forecasts for each profit measure from operating profit through net profit.

Mitsubishi Logistics describes the share acquisition as a growth investment aimed at enhancing corporate value over the medium to long term. The revision reflects one-off acquisition costs weighing on earnings in the current fiscal year, but does not quantify the impact of the acquisition on the business after completion.

Under the revised outlook, net profit is forecast at ¥21.6 billion, below the prior-year result of ¥54.773 billion. Investors will need to note that earnings are expected to fall not only from the previous forecast but also from the prior-year level.

• Versus prior year: Operating revenue is forecast to exceed the prior-year ¥273.446 billion, while operating profit of ¥15.928 billion, business profit of ¥18.575 billion, ordinary profit of ¥21.563 billion and net profit of ¥54.773 billion are all expected to be lower than their respective prior-year results.
• Dividend: The dividend forecast is unchanged following the earnings forecast revision.

Investors should consider both the revenue growth outlook and the gap between forecast earnings after costs and prior-year results. Mitsubishi Logistics said its forecasts are based on certain assumptions and actual results may differ due to various factors.