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Top Message

Raising our profitability by deploying diverse businesses in order to achieve stable growth and establish financial bases, and aiming to further improve our corporate value.

While working to expand future sales in our main areas, namely the AUTOBACS and car-related business together with the Business Supermarket and specialty food business, the G7 Group will continue to actively move forward with new lines of business, overseas deployment, and M&A activities, to strive for even greater sustainable growth.

Tatsumi Kaneda, President, Representative Director
Tatsumi Kaneda President Representative Director

Q: Please tell us about your business results and their main factors for this term.

Under our Group policy of “secure sales, increase gross margin, control inventory, and control expenses”, in the 42nd fiscal year (April 1, 2016 to March 31, 2017) we took action to enhance sales by strengthening the profitability of our existing stores and participating in events such as the G-7 Mall Festivals. As a result, we achieved growth in both revenue and profits, with consolidated results showing net sales of 110,377 million yen (6.2% increase from the same period last year), operating income of 3,897 million yen (28.7% increase), ordinary income of 4,062 million yen (26.1% increase), and net income attributable to owners of the parent of 2,080 million yen (11.4% increase).

The primary factors in our strong performance were the growth of sales in the AUTOBACS and car-related business, and the revitalization of our existing Business Supermarket stores (existing store sales increased by 1.6% from the same period last year).

In the AUTOBACS and car-related business, both net sales and ordinary income for the main AUTOBACS business were strong, exceeding the results of the previous year. Sales in the car business (automobile purchases and sales) which surpassed those of the previous year, and the demand for tire replacement due to snowfall occurring in certain regions of Kanto and Kansai, led to increased sales in the second half of the fiscal year and compensated for a reduction in car accessory sales. Looking at Bike World, steps were taken to improve business activity, with one new store opened in Japan and one poorly-performing store closed. The car-related business in Malaysia also showed positive results, with increased revenue for all stores (2 AUTOBACS locations, 2 Bike World locations).

In the Business Supermarket and specialty food business, offering high-quality products to consumers at reasonable prices attracted support from many customers, with strong performance of existing stores and the opening of new stores leading to increased sales. Action was also taken for improvement and maintenance, such as repairing store signs that had begun to show noticeable deterioration. In addition, we opened 8 locations of our meat business Terabayashi, which included stores opened jointly with Business Supermarket, contributing to increased revenue and profits. In the specialty food business, the cultivation of new business partners and the discovery of high added-value merchandise specially selected from across the country led to strong performance results.

Sales in other businesses achieved growth as well, aided by measures such as the change in the selling format of our direct agricultural product sales store Megumi no Sato from consignment sales to purchase sales starting from June of last year, and the favorable performance shown by our cheese tart specialty store BAKE. We also began a coin-operated laundry business as a new business category, opening 2 locations of our large-scale coin-operated laundry mammaciao. These efforts, together with the reduction effects of stores showing losses, contributed to increased revenue and sales.

Q: Please tell us your goals and planned initiatives for the next term and beyond.

In the 43rd fiscal year (April 1, 2017 to March 31, 2018), we are expecting consolidated business performance as follows: net sales of 117.7 billion yen (6.6% increase from the same period last year), operating income of 4.1 billion yen (5.2% increase), ordinary income of 4.3 billion yen (5.9% increase), and net income attributable to owners of the parent of 2.2 billion yen (5.8% increase).

To achieve these goals, we will practically implement the policy of the G-7 Group: “secure sales, increase gross margin, control inventory, and control expenses”, while planning to rebuild our personnel structure and organizational structure, and promoting efforts to enhance our management system in order to create domestic and foreign business bases.

We are also intending to strengthen our organizational and human capabilities as a specific strategy to achieve our mid-term management plan, scheduled to end in the fiscal year of the March 2021 term (the 45th anniversary of our establishment). We will reinforce collaborative activities within the Group, through measures such as raising our ability to attract customers by providing our new mammaciao large-scale coin-operated laundry business or other such facilities together with existing stores. Furthermore, even though the severe sluggish conditions of the domestic motorcycle market continue to persist, our capital and business partnership concluded in November 2016 between BIKE-O & COMPANY, a business involved in sales of two-wheeled vehicles, and BIKE WORLD, involved in sales of motorcycle accessories, will result in a fusion of both businesses able to discover new customers.

Q: Please tell us about your overseas deployment and M&A activities.

In our overseas businesses, the car-related business in Malaysia is performing well, with G7 Retail Malaysia reaching its budget goals for the first time this term since it opened in 2012. In the food and beverage-related business, Kushikatsu Daruma is aiming to open its second location in succession after its Taiwan location.

Regarding M&As, in May 2017 we acquired shares of Kawase Shokuhin Co., Ltd., a company deploying supermarkets centered in Akashi City in Hyogo Prefecture, as well as of Crown Trading Co., Ltd., a company engaged in export sales of automobiles in Asia and ASEAN regions. We hope to expand the business operations of the Group overall by actively carrying out M&A activities and partnerships in the future, for lines of business and business types expected to have high synergy within the Group.

Q: Please give a message to all of your shareholders.

The G7 Group’s basic management policy is to achieve stable growth and establish financial bases over the medium- to long-term. We will increase our profitability in diverse business fields and strive to further improve our corporate value, in order to meet the expectations of our shareholders and stakeholders. Looking at our dividends for this term, our mid-term dividend was 20 yen per share, while our year-end dividend was 20 yen per share as a regular dividend and 13 yen as a special dividend based on business performance for the term, for a total of 33 yen (53 yen on the year).

We sincerely hope that our shareholders will continue to provide guidance and encouragement moving forward.

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