SG Holdings lowers FY2025 guidance, unveils long-term vision

SG Holdings (TSE:9143) revised its FY2025 earnings forecast downwards, citing weaker-than-expected delivery volumes due to persistent competition and subdued consumer spending impacting its Delivery Business. This downward revision is offset by a stronger-than-anticipated performance in its Logistics Business, driven by robust freight rates and new customer acquisitions. Despite the near-term adjustment, SG Holdings unveiled its "SGH Story 2027" mid-term plan and "SGH Vision 2030," outlining a strategic shift toward "Total Logistics," integrating its delivery, logistics, and global freight forwarding services. The company aims to achieve 2.2 trillion yen in revenue and 15% ROE by 2030, fueled by M&A, organic growth, and expansion in growing markets like cold chain logistics and international freight. To support this ambitious vision, SG Holdings also announced plans to invest in human capital, enhance its global governance, and increase shareholder returns through a progressive dividend policy and flexible share buybacks.