Top Message

Message from our President and Representative Director and CEO

Reflecting its focus on developing corporate structures to facilitate sustained, stable growth, the G-7 Group is working toward achieving sales of 170.0 billion yen and ordinary income of 7 billion yen as the final targets of its Mid Management Plan.
Before reporting the company’s performance during the G-7 Group’s 45th fiscal year (April 1, 2019 to March 31, 2020) to shareholders, I’d like to take this opportunity to express my condolences to all those who have lost a family member or loved one to the COVID-19 pandemic and my best wishes to all those who have suffered, or are suffering, from the disease. I’d also like to express my deep gratitude to the healthcare professionals and government workers who are doing their utmost to contain the pandemic. We consider the safety of our customers, business partners, and employees and family members to be the top priority, and we will continue to take steps to mitigate the risk of infection. I speak for everyone at the G-7 Group when I say that I hope all those suffering from this disease get well as soon as possible, and that the pandemic is brought under control as soon as possible so that all of us can resume our normal lives.

How did the Group perform during the fiscal year under review, and what were the principal factors behind that performance?

Although the Group’s 45th fiscal year (April 1, 2019 to March 31, 2020) brought a new level of challenges to the business environment, including a hike in Japan’s consumption tax and a trend among consumers to avoid unnecessary outings due to the COVID-19 pandemic, the Group continued to pursue human resources and organizational development while working to increase productivity by emphasizing profit over sales so as to boost profitability. As a result, both revenue and profits grew as consolidated sales increased to 132,642 million yen (up 8.3% from the previous fiscal year); operating profits, to 5,783 million yen (up 15.3%); ordinary income, to 5,995 million yen (up 19.5%); and net income attributable to owners of parent, to 3,523 million yen (up 15.8%). Contributing to these favorable results was robust performance in our Gyomu Super Business, Select Food Business, and other businesses. With regard to the Autobacs and Car-Related Businesses, a drop-off in demand following rush demand that had preceded the consumption tax hike in October 2019 combined with slack demand for winter seasonal products such as snow tires and tire chains caused by a record-setting mild winter to offset strong sales of drive recorders driven by growing awareness of safe driving. With regard to the Gyomu Super Business and Select Foods Business, Gyomu Super, which offers high-quality products at reasonable prices, and Meat Terabayashi, which sells dressed meat, performed well. Coverage of Gyomu Super products in the media brought new customers to our stores. We also opened 10 new Gyomu Super outlets and 12 new Meat Terabayashi outlets. With regard to other businesses, we opened 12 new Megumi no Sato produce outlets, 3 new Ikinari Steak outlets, and one new King Ram used brand-item shop. We also took over one Curves health exercise classroom from other ownership.

  • Coverage of our Gyomu Super Narita Branch on a television program drew numerous customers to the location.
    Coverage of our Gyomu Super Narita Branch on a television program drew numerous customers to the location.
  • We opened an outdoor products shop at our Autobacs Akashi Branch.
    We opened an outdoor products shop at our Autobacs Akashi Branch.

What can you tell us about the targets and initiatives you plan to pursue during the next fiscal year and beyond?

With regard to the consolidated outlook for our 46th fiscal year (April 1, 2020 to March 31, 2021), we’re forecasting sales of 170,000 million yen (up 28.2% from the previous fiscal year), operating profits of 6,700 million yen (up 15.9%), ordinary income of 7,000 million yen (up 16.7%), and net income attributable to owners of parent of 4,000 million yen (up 13.5%). Although the business environment in the retail industry is expected to become even more challenging due to factors including a deep-rooted tendency toward frugality on the part of consumers, diversification of sales channels, an increasingly serious manpower shortage, higher consumption tax, and a continued preference on the part of consumers to avoid unnecessary outings in the face of the ongoing COVID-19 pandemic, we will continue our human resources and organizational development initiatives in order to achieve our performance targets while increasing productivity by emphasizing profit over sales. Additionally, we will work to develop a corporate structure conducive to stable growth by further refining our earning capability in order to increase profitability, implementing a management system that is resistant to market fluctuations, and pursuing the multifaceted development of our businesses. Allow me to note that the consolidated outlook for our 46th fiscal year, which reflects conditions as of April 2020, when the declaration of emergency was still in effect, is based on the information that is available to us at the present time. In the event it becomes necessary to revise the outlook because the pandemic’s impact on our markets exceeds our expectations, we will announce those changes immediately.

  • G7 Japan Food Service Co., Ltd. participated in the 2020 Supermarket Trade Show, where the company worked to develop new customers and products.
    G7 Japan Food Service Co., Ltd. participated in the 2020 Supermarket Trade Show, where the company worked to develop new customers and products.
  • Students from the University of Malaya performed a “Lion Dance” at the opening ceremony for the Old Klang Road branches of Autobacs and Bike World.
    Students from the University of Malaya performed a “Lion Dance” at the opening ceremony for the Old Klang Road branches of Autobacs and Bike World.

Do you have a message for shareholders?

Thanks to the cooperation of our stakeholders, the G-7 Group recently marked the 45th anniversary of its founding. I am deeply grateful to our shareholders and other stakeholders for the guidance and support that made this milestone possible. Going forward, we will continue to meet shareholder expectations by boosting the profitability of each of our businesses and delivering growth based on our basic policy of pursuing stable growth while establishing a sure financial base over the medium and long term. With regard to dividends for the current fiscal year, we will pay an interim dividend of 43 yen per share and a year-end dividend* of 23.5 yen per share, including a common dividend of 21.5 yen per share and a special dividend of 2 yen per share reflecting this fiscal year’s performance. I would ask our shareholders for their continued guidance and support.

*As of January 1, 2020, the Company has a ratio of 2 shares for each common share.