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To a growth track with "united S.T. CORPORATION"

Profit skyrocketed thanks to the business matrix structure

In the year ended March 2017, we developed the business matrix structure further, which commenced in the previous year, with the aim of actualizing a highly profitable system under the managerial policy "brand value management." The visualization of each business progressed, and we strived to manage our revenue thoroughly. As a result, our revenue increased considerably. As for new products, fragrance products sold well; especially the sales of "SHALDAN" Fragrance and "Shoshu-Riki" Premium Aroma series contributed. As for deodorizers, high-priced products with high added value, such as the "Shoshu-Riki" Function Plus series for restrooms, contributed. Consequently, sales were 46.0 billion yen, up 2.9% year on year.

As for profit, quantity sold increased and products with high added value were promoted. As for cost, our continued efforts for reducing product returns and the costs for manufacturing bore fruit, and we strived to decrease inventory and the number of products. Consequently, operating income was 2.9 billion yen, up 21.9% year on year, ordinary income was 2.9 billion yen, up 68.3% year on year, and profit attributable to owners of parent was 1.8 billion yen, up 99.2% year on year.

Development of a highly profitable system, and sowing the seeds of growth

The year ending March 2018 (this year) is the last fiscal year in the medium-term business plan. This year, we will conduct "sowing the seeds of growth" while "developing a highly profitable system."

For "developing a highly profitable system," we will "expand the market with our Air Care business," increase our share by "vitalizing the market with our existing business," and boost our profit by "continuously reforming our profit earning structure."

For "sowing the seeds of growth," we will try to achieve the three objectives: "to foray into a new market with our existing technologies," "to create markets with our new unique air-care technologies," and "to enhance our global strategies."

"To foray into a new market with our existing technologies," we launched "Yells," a new brand of nursing-care goods for meeting the needs in the super-aged society. We will alleviate the complaints and inconveniences at nursing-care sites by utilizing our original deodorant technology.

"To create markets with our new unique air-care technologies," we will release "Aroma Supplement," a new brand focused on the physiological effects of fragrance, and suggest new healthy habits with aroma oil. As for another new technology "Clear Forest," we obtained the European organic certification in July 2016, and are cultivating a new market.

"To enhance our global strategies," we will concentrate on the business in the ASEAN region, which is the target area of our strategies, with the hub of our activities located in Thailand.

For actualizing "united S.T. CORPORATION"

Our policy for this year is "to get on a growth path as united S.T. CORPORATION."

We have evolved the business matrix structure further, integrated domestic and overseas sales sections, which had been separate organizations, into one organization, and strengthened the support of the support section.

In order to improve our corporate culture, we will promote the "change in work styles." We will not able to create products that make customers happy, unless we ourselves keep a good balance between work and private life and lead a happy life. By getting rid of meaningless tasks and introducing flexible ways of working, we will enhance our productivity and develop a sustainable business base.

Through these activities, we will get on a growth track in new fields and markets, to make great strides. We would appreciate your continued support.

July 2017
Takako Suzuki
President and Chief Operating Officer