President’s MessageInvestor Relations
To our shareholders
President, Kurabo Industries Ltd.
Thank you very much for your continued support.
The following report is an overview of the Group’s consolidated business during the 212th fiscal term (April 1, 2019 to March 31, 2020).
During the consolidated fiscal year, the Japanese economy experienced a slowdown in its recovery.
This can be attributed to factors such as trade friction between the United States and China, stronger restrictions on exports for both Japan and South Korea, as well as the increase in the consumption tax rate that occurred in October of 2019. In addition, the global spread of COVID-19 that began early this year has stalled economic activity, caused a crash in stock prices, decreased the price of crude oil, and triggered volatile exchange-rate fluctuations, strengthening feelings of uncertainty about the future of the economy.
Against this backdrop, the Kurabo Group has been focused on efforts that include expanding high-value-added, high-profit business, transforming itself into a market-oriented business, and creating new business.
This focus comes under our basic policy to “increase earnings and enhance corporate value through innovation” from the Creation ’21 medium-term management plan that we started in April 2019.
Consolidated net sales were 142.9 billion yen (down 9% year on year), operating income was 4.54 billion yen (down 19.5% year on year), ordinary profit was 5.48 billion yen (down 11.4% year on year), and net income attributable to owners of parent was 3.73 billion yen (down 19.7% year on year).
With regard to the future economic situation in Japan, the outlook is extremely uncertain due to factors such as not knowing when the spread of COVID-19 will end and not having a clear understanding of the degree to which COVID-19 will ultimately impact the world economy, including Japan.The Kurabo Group anticipates the occurrence of many issues, including a reduction in incoming orders due to the depressed economy as well as an impact on production activity due to disruptions in the supply chains for clothing and the automotive industry.
We also expect that both sales as well as delivery activity in Japan and abroad will be stalled due to various self-imposed measures and restrictions.
To respond to these conditions, the Kurabo Group has established guidelines for COVID-19-related countermeasures, and the entire Group will prioritize the safety and health of all Group employees as well as stakeholders in an effort to prevent the spread of infections and to minimize the impact of the virus on business and production activities.
In addition, the Kurabo Group will continue to focus on efforts that include expanding high-value-added, high-profit business, transforming itself into a market-oriented business, and creating new business in accordance with the Creation ’21 medium-term management plan.
We will also strive to become a “Strong corporate group that generates innovation and high profit,” which was established as the aim of the Group in its “Long-Term Vision 2030.”
Furthermore, we will continue to enhance our corporate governance system and advance CSR activities, including the thorough observance of corporate ethics and the law as well as initiatives for the SDGs (Sustainable Development Goals), with the aim of achieving sustainable growth and increasing corporate value over the medium to long term.
We look forward to your continued support and guidance.