Message from the President
This consolidated fiscal year, the Japanese economy saw real GDP grow for the fourth consecutive year, supported by increases in capital investment and exports, and continued on a moderate recovery trend. While income conditions showed signs of improvement due to ongoing wage increases, they have not kept pace with price hikes caused by surging raw material prices and logistics costs, as well as inflation driven by unstable exchange rate fluctuations. As a result, consumers' risk-averse spending patterns have become entrenched. On the other hand, the business environment remains uncertain due to global political instability and concerns about the risk of an economic downturn caused by policy changes and continued monetary tightening in the United States following the change of administration.
Under these business conditions, the Gunze Group is in the final year of its medium-term management plan, “VISION 2030 Stage 1,” and is implementing the four basic strategies of “Creating of New Value,” “Capital Cost-focused Management,” “Evolution of Corporate Constitution,” and “Environmentally Responsible Management.” We also strengthened our production bases for medical and engineering plastics, withdrew from the electronic components business, and restructured our sports club operations.
Net sales increased by 4,231 million yen due to a recovery in domestic demand for plastic films, growth in sales of engineering plastics for office automation equipment and semiconductor-related products, and expansion of sales of new medical products and sales to China. Although the Apparel segment suffered a decline in operating income due to a decrease in sales volume and an increase in costs, operating income increased by 1,144 million yen and ordinary income increased by 1,405 million yen due to increased profits in the Functional solutions segment and the Medical segment, as well as improved profitability at sports club business. Additionally, profit attributable to owners of parent increased by 1,169 million yen, despite the recognition of business restructuring costs related to the discontinuation of the electronic components business and the transfer of a subsidiary, due to gains from the sale of investment securities, including the sale of cross-shareholdings.
We will continue to provide our customers with the unique “Comfort” that only Gunze can offer and strive to achieve sustainable management. We kindly request the continued support and encouragement of our shareholders.
PresidentGUNZE LIMITED