Japan based Nichiriei Corporation’s Nichirei Logistics saw operating profit growth of 3.6% y-o-y to JPY 15,147m (€102.3m) in the calendar year to 31 March, 2023. Revenues were broadly steady in the period at JPY 224,207m (€1,515m).
The company has been investing in its controlled temperature logistics operation in Japan as well as meeting the requirements of new labour regulations for its truck drivers. According to CEO Kenya Okushi, “We plan to invest ¥120 billion over the three years of Compass Rose 2024. Half of that, approximately ¥60 billion, will be the investments for growth I mentioned above, mainly in the processed foods and temperature-controlled logistics businesses. The remainder will be focused on investment for the environment”.
Okushi went into some detail as to the planned ¥60bn (€405m) investment by his logistics business. “In Japan, we will further expand our frozen food logistics platform, which handles domestic distribution of products from the Nichirei Group and other companies, and utilise digital technology to improve process innovation and raise the efficiency of onsite work. Overseas, we are steadily expanding business through proactive investment in the port business in Europe and other growth areas. We will make the capital expenditures required to make full use of port facilities and coordinate functions across the organisation with the aim of maximising earnings from our businesses in Europe.”
Expanding on the ¥60m investments in sustainability, Okushi said that there are to be investments in solar energy as well as removing chlorofluorocarbons from its refrigeration systems (that have been shown to damage the atmosphere’s ozone layer). He said, they are to install “Natural refrigerants at new facilities and converting equipment at existing main bases, and reducing power consumption by introducing high-efficiency freezing and refrigeration equipment. We are also taking concrete steps to address growing demands from investors and other stakeholders for the elimination of chlorofluorocarbons.”
Source: Ti Insights
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