Top Message

Message from our President and Representative Director

We, the G-7 Group, plan to strongly advance our existing businesses, new businesses and overseas businesses and deal with profit oriented management. We will continue to make efforts to aim at developing to become a global corporation that continues 100 years from its foundation.

About our current mid-term performance and its factor

Consolidated results of the mid-term of the fiscal year ended at September 30, 2018 (April 1, 2018 to September 30, 2018) showed increased sales and increased profits breakdown as follows: Sales: 59.145 billion yen (3.5% increase compared to the same term in the previous fiscal year), Operating profits: 1.943 billion yen (19.7% increase compared to the same term in the previous fiscal year), Ordinary income: 1.923 billion yen (11.2% increase compared to the same term in the previous fiscal year), Net income attributable to owners of parent: 1.195 billion yen (11.2% increase compared to the same term in the previous fiscal year).

Our continued efforts in upholding the group policy of "securing sales, increasing gross profit, inventory control and cost control" have led to favorable results for this term. This is the result of dealing with profit creation through pursuing the reformation of the development and organization of human resources, along with pursuing profit-oriented increased production.

With regard to Autobacs and car-related businesses, demand for dashboard cameras increased due to increased awareness for safe driving. In addition, we expanded vehicle products centered on tires and rims and promoted total car life support of customers through vehicle inspection and vehicle sale. Through these actions we continue to emphasize the importance of customer service. However, there was a reactionary drop in the main product tire sales due to last-minute demand in the same term in the previous fiscal year, resulting in little gain in sales expansion.

With regard to our food and restaurant businesses, Gyomu Super and Terabayashi, which sells meat, fared well thanks to their focus on offering quality foods at reasonable prices. In addition, passionate quality food business also fared favorably by developing highly value added carefully selected products and materials. With regard to "Gyomu Super" and "Terabayashi" stores, we opened a store in Saitama Prefecture (Urawa Kagetsu store) and opened two stores (Kitamoto store and Kawagoe store) by transference.

With regard to other businesses, the agricultural product sales method in the Agricultural Business has been changed from "purchase and sell" to consignment sale. With regard to opening stores, we opened a BAKE cream puff specialty store, "Croquantchou ZakuZaku," in Osaka (LUCUA Osaka store); a BAKE cheese tart specialty store, "Bake Cheese Tart," in Gunma Prefecture (Aeon Mall Takasaki store); a health exercise classroom, "Curves," in Kanagawa Prefecture (Miura Kaigan Ekimae store); and opened two steak chain stores, "Ikinari Steak," in Hyogo Prefecture (Gakuen Minami store and Miki store).

  • Ikinari Steak Miki store
    Ikinari Steak Miki store
  • Terabayashi Kawagoe store
    Terabayashi Kawagoe store
  • Almond butter new packaging
    Almond butter new packaging

Regarding handling in the latter part of the fiscal year and the anticipated full year business result

For the latter part of the fiscal year, we plan to achieve our full-year target of 130 billion yen by increasing sales by continually executing our sale strengthening strategy.

With regard to full-year consolidated results, we anticipate as follows: Sales: 130 billion yen (8.5% increase year-on-year), Operating profits: 5 billion yen (15.6% increase year-on-year), Ordinary income: 5.5 billion yen (20.4% increase year-on-year), Net income attributable to owners of parent: 2.8 billion yen (5.7% increase year-on-year).

Current overseas development

We are currently developing a total of two Autobacs stores and three Bike World stores in Malaysia and Thailand. In addition, we have achieved profits in our Bike World Klang Sentral store in the first half of this fiscal year for the first time since it opened in 2014. We plan to achieve profits in the latter part of this fiscal year, too.

Kushikatsu Daruma Zhongshan Changan store in Taiwan uses SNS (Social Networking Service) and food ranking websites to increase the number of customers. This store also has implemented a special customer attraction strategy for lunch time for the same purpose.

In addition, Pyin Oo Lwin Farm in Myanmar, which cultivates strawberries and lettuce, started engaging in sales to supermarkets in Myanmar from February 2015. It newly started shipment to the old capital, Yangon, in March 2018.

We at G-7 group will continue our efforts to promote strengthening our overseas businesses in Asia and the ASEAN region through expanding our existing businesses and carrying out M&As.

Our message to shareholders

G-7 group will strive for continuous growth through proactive business development, including M&A and profit oriented management, in order to achieve our objective of 170 billion yen in sales and 7 billion yen in ordinary income. This is our goal to reach in our mid management plan before our 45th anniversary in FY2020 to respond to the expectations of shareholders and stakeholders. With regard to dividends in the current fiscal year, we plan to pay 35 yen per share as an interim dividend and 35 yen per share as a common dividend of the year-end dividend, totaling 70 yen.

We solicit your continued patronage and guidance in the future.