For the fiscal year ending 31 March, 2025, NYK Line delivered solid top-line growth, with consolidated revenues reaching ¥2,588.7bn, an 8.4% increase from the previous year’s ¥2,387.2bn. However, profitability was under pressure, as operating profit declined by 20.7%, falling from ¥296.4m to ¥174.7m. The company reported a profit margin of 8.14%.
As part of an internal restructuring aimed at better aligning its operations with market realities, NYK revised its segment classifications. The former Bulk Shipping Business has been split into three focused units that include, Automotive, Dry Bulk, and Energy, while the Real Estate Business has been moved under “Other Business” to reflect its smaller scale.
Liner Trade Segment
The Liner Trade business segment, comprising the Container Shipping and Terminal divisions, delivered higher profitability year-on-year despite a 6.5% decline in revenue, from ¥186.6m to ¥174.4m year-on-year.
In the Container Shipping Division, NYK expanded its fleet with new vessels. However, global supply chains faced continued disruption due to port congestion, geopolitical instability in the Red Sea, and strong cargo demand, resulting in a tight supply-demand balance. These conditions kept freight rates elevated for most of the fiscal year. Although there was some softening in the fourth quarter, the average annual rates remained above the previous year’s levels, contributing to a year-on-year profit increase at Ocean Network Express (ONE).
The Terminal Division produced mixed results. Domestic terminal volumes increased, reflecting healthy domestic activity, while overseas volumes declined, primarily due to the sale of an affiliated terminal in North America in late 2023.
Air Cargo Transportation Segment
NYK Line’s Air Cargo business experienced strong momentum, driven by sustained e-commerce demand from Asia to the US and Europe, along with solid movement of semiconductor equipment and automotive parts.
As a result, revenue rose 16%, from ¥154.6m to ¥179.2m y-o-y.
Logistics Segment
The Logistics segment saw revenue rise by 15.7%, from ¥699.3m to ¥809.0m y-o-y, but profits did not follow the same trajectory. The company notes that the Air Freight Forwarding division benefitted from a surge in spot cargo and sustained Asian trade flows, but elevated procurement costs kept profits flat. The Ocean Freight Forwarding division experienced similar dynamics, with volume gains offset by rising costs. The Contract Logistics delivered strong results in North America and Southeast Asia, but performance declined in Europe and East Asia. In addition, one-time costs related to prior-year investments weighed on the division’s margins.
Automotive Segment
Despite challenges including port congestion and rerouting due to Middle East tensions, the Automotive segment adapted effectively, optimizing vessel deployment to meet steady transport demand. Meanwhile, the auto logistics business remained strong, particularly in terminal operations. Revenue rose 8.4% year-on-year, from ¥490.6m to ¥531.9m.
Dry Bulk Segment
The Dry Bulk segment posted a 6.0% increase in revenue, from ¥567.0m to ¥601.3m.
Other Segment
NYK Line’s “Other” segment saw a slight decline in revenue, down 1.2%, but managed to grow profits year-on-year.
Looking Ahead
Despite solid performance in key areas, NYK Line anticipates a more challenging fiscal year ahead, with both revenue and profit expected to decline year-on-year. The outlook reflects evolving market dynamics and anticipated headwinds across global transport and logistics sector.
Author: Shruti Sasidharan
Source: Ti Insight
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