The G-7 Group will celebrate 45 years since its founding in 2020. Our final goals for the 2020 mid-term management plan are to achieve the net sales of 170 billion yen, and ordinary income of 7 billion yen. We also aim to develop not only existing businesses, but new businesses as well, aggressively pursue overseas business, and continue to aim for sustainable growth.
A: Consolidated results for the interim period of 42nd fiscal year (April 1 to September 30, 2016) are the net sales of 52,964 million yen (7.9% increase from the same period last year), operating income of 1,441 million yen (15.9% increase), ordinary income of 1,591 million yen (31.3% increase), and profit attributable to owners of the parent of 856 million yen (1.8% increase), resulting in the achievement of profit and revenue growth.
Under the group policy of "secure sales, increase gross margin, control inventory, and control expenses," I believe that the initiatives to strengthen sales such as strengthening the profitability of existing stores, and actively participating in events such as the G-7 Mall Festival, etc. are linked to our favorable results this time.
The Business Supermarket and specialty food business performed well particularly in the first half, with the Business Supermarket leading about 80% of this segment. There was a rush of new store openings for the Business Supermarket, and we were able to open four stores, overseas included, by June. At the same time, we opened Terabayashi, a meat business that was converted to a consolidated subsidiary last year, as a tenant store within the Business Supermarket. On the other hand, the revitalization of existing stores was remarkable (existing store sales increased by 1.9% from the same period last year), resulting in strong performance. Additionally, the specialty food business has performed well due to the expansion of new business partners, and by increasing the trading products and sales channels.
In regards to AUTOBACS and the car-related business, sales in the AUTOBACS business, which accounts for about 90% of the segment, slumped through the beginning of spring due to a warm winter last year which lead to slow sales of replacement tires, the mainstay product. In the second quarter, thanks to large-scale events and the G-7 Mall Festivals, sales of car accessories and used car purchases and sales turned to a recovery trend. On the other hand, AUTOBACS and Bike World operated by G7 Malaysia secured sales that are significantly higher than that of last year (41.6% increase from the same period last year).
Regarding other businesses, having changed from consignment sales to purchase sales for Megumi no Sato in the term's first half, we were able to increase sales. However with increases in inventory loss and disposal, we had an increase in yield and a decrease in profit. Nevertheless, stores that opened within the Business Supermarket as tenants showed a synergetic effect in attracting customers, and have been performing well. Following the opening of stores in the Kanto Region in May, we will use the opportunity to accelerate the opening of more stores in that region. In addition we have opened 2 new BAKE Cheese Tart stores ran by G7 JAPAN FOOD SERVICE, one in Kyoto Teramachi and one in Abeno Harukas - together with the first store in Hanshin Umeda, these are popular stores that have people lined up continuously for them every day.
In the second half we will prepare for the inaugural Thanksgiving Festival as well as numerous G-7 Mall Festivals. The G-7 Group will unify in order to strengthen sales, plan to raise the sales standard, and take on the challenge of reaching our goal of 115,000 million yen in sales for the total fiscal year. For the AUTOBACS business, which serves as a core, we will focus on winter products in order to secure sales, and we will attempt to guide people to our stores by making sales business excursions to facilities that gather customers, such as nearby large shopping centers, outside of the existing stores. In regards to the Business Supermarket business, in addition to opening new stores, we will also sequentially renovate our existing stores to provide for a pleasant store experience for our customers.
Regarding consolidated results for the full fiscal year, net sales of 115,000 million yen (10.7% increase from the same period last year ), operating income of 3,700 million yen (22.2% increase), and an ordinary income of 4,000 million yen (24.2% increase), and profit attributable to owners of the parent of 2,100 million yen (12.5% increase) will be expected.
The current term marks 41 years since the G-7 Group was established. We have formulated a new mid-term management plan, which is to achieve 170 billion yen in net sales, and 7 billion yen in ordinary income, for the group's 45th anniversary for the fiscal year ending March 31, 2021.
Within our mid-term management plan, we have 7 mid-term business plans which will act as guidelines as we seek to concretely plan and implement our business strategies and development. Beginning with strengthening organizational and human capabilities, and including developing the human resources that will be responsible for leading the G-7 Group to the next generation through NCC (executive officers and chairman for the next term), challenging the agricultural business, and strengthening overseas business through Asia and ASEAN, I'd like for the G-7 Group to come together as a whole as we aim to achieve the final objective of the mid-term management plan.
A: The G-7 Group is looking forward to the next ten and twenty years, and continuing to aim for the basic management principles of "social contribution," "self-realization," and "realization of desire," we will aggressively pursue business development, and promote profit-oriented management. We are aiming for continuous growth, to meet the expectations of all our shareholders. In regards to the dividend for the current fiscal year, we plan to pay a mid-term dividend of 20 yen per share and pay a year-end dividend of 20 yen per share (40 yen on the year).
We sincerely hope that our shareholders will continue to provide guidance and encouragement moving forward.
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