Toll’s struggles continue to weigh on Japan Post

Japan Post 2020

Japan Post Group produced ordinary income of ¥3,271.2bn in the first quarter of its fiscal year. This represented a 3.0% year-over-year decrease. The group’s profitability remains healthy. Net ordinary income stood at ¥218.1bn, with net income at ¥104.4bn.

Japan Post Co., produced ordinary income of ¥913.0bn, up 1.3% year-over-year, with net ordinary income up ¥2.2bn to ¥7.4bn and  net income up ¥1.4bn to ¥5.8bn. The integration of Toll Group, since its purchase in 2015 has proved difficult. Japan Post issued a write-down of ¥400bn worth of losses in the previous financial year.

Segmented further, within the Japan Post’s individual business, the Postal and Domestic Logistics segment produced operating income of ¥461.6bn, up 9.1% year-over-year. This was as a result of an increase in Yu-Pack and Yu-Packet volumes handled (+25.1%). However, operating expenses increased due to the increased volumes, as well as rising wage rates, depreciation charges and equipment purchase and renewal costs. This meant it reported a net operating loss of ¥6.4bn, which was down by ¥0.6bn.

In its International Logistics segment (Toll Group), revenues were up 8.3% year-over-year to ¥162.7bn. Operating expenses growth exceeded this (+10.9%) and thus EBIT was -¥0.7bn. According to Japan Post, this represented a quarter-on-quarter increase and exceeded its budget plans.

Source: Japan Post