Sanyo Trading records sales high, profits dip on investments, eyes future growth

Sanyo Trading reported record-high net sales of JPY 132,703 million and gross profit of JPY 22,564 million for the fiscal year ending September 2025, a 2.7% and 1.5% increase year-over-year, respectively. Despite this, operating profit decreased by 9.1% to JPY 6,430 million due to increased personnel and IT-related investments. Sustainability initiatives significantly bolstered performance, offsetting declines in other segments.

Looking ahead to the fiscal year ending September 2026, Sanyo Trading anticipates a plateau in performance, with forecasted net sales of JPY 130,000 million and operating profit of JPY 6,200 million, attributed to upfront investments and strategic timing of business monetization. The company is actively pursuing new business opportunities, including the acquisition of EMAS SUPPLIES & SERVICES PTE LTD to expand its automotive aftermarket and value chain, and a business alliance with KORBON CO., LTD. to develop carbon nanotube applications. These initiatives are expected to contribute to earnings from fiscal year 2027 onward, aligning with the "Sanyo Vision 2028" targets of JPY 9,000 million in operating profit and a PBR of over 1x.

To enhance corporate value and investor engagement, Sanyo Trading has revised its segment reporting, improved information disclosure, and changed financial results announcement times. The company also confirmed its commitment to a progressive dividend policy with a payout ratio of 30% or higher during the SV2028 period. These efforts aim to increase PER by improving visibility and reflecting constructive feedback from investor dialogues, with 58 institutional investor meetings held in the last fiscal year.