Mitsubishi Logisnext forecasts growth despite currency headwinds

Mitsubishi Logisnext (TSE:7105) announced its FY2024 financial results and provided its outlook for FY2025. For FY24, the company reported revenue of JPY 6,655.9 billion, a 5.2% decrease year-over-year, and a net profit of JPY 86.6 billion, down 68.5% year-over-year. While domestic demand remained strong, overseas operations, particularly in North America, impacted results. The company expects improved sales and profits for FY25 with revenue of JPY 6,750 billion, a 1.4% increase, and net profit forecast at JPY 170 billion, a 96.2% increase. The projection relies on a recovery in North American demand following inventory adjustments and benefits from internal cost-saving and pricing strategies. Key strategic initiatives include strengthening its battery-powered vehicle lineup to compete with Chinese manufacturers and expanding its logistics solutions business. The company assumes an exchange rate of JPY 145 to USD 1 and JPY 155 to EUR 1.