It's time to start. We will have the financial results presentation for Q2 fiscal year ending December 2024. I'll introduce you today's participants. On the front row, to the right, is Nippon Express Holdings President and CEO and Representative Director, Horikiri. To the left of Horikiri is Nippon Express Company President and CEO, Takezoe. On the second row on the right, Nippon Express Holdings Senior Managing Executive Officer in charge of global business, Furue. Left to Furue is Managing Executive Officer in charge of strategic management, Otsuki. And next, Director and Executive Officer in management planning, Akaishi.
The secretariat is Financial Planning Department Head Suzuki and Shinkawa, and myself, Tsumori of the IR Promotion Group, Corporate Planning Department. Today's schedule. First of all, President Horikiri would explain for about 20 minutes the overview of financial results, and then we have Q&A session. We plan to end at 6:00 P.M. Today, we'll be using PowerPoint explanation document and executive summary of the finance, and we have it on the homepage. We'll start the financial results presentation for Q2 fiscal year ending December 2024.
Yes, this is Horikiri. Thank you very much for taking time from your busy schedules to attend our financial results briefing today. We would also like to express our sincere gratitude for your continued patronage. Now, I would like to explain the overview of our second quarter financial results for the fiscal year ending December 2024, as well as our full year earnings forecast. First, please look at page five of the document for an overview of the financial results. The consolidated financial results for the second quarter of the fiscal year ending December 2024 are as stated in the materials.
Since the second half of last year, global logistics demands appear to have bottomed out, but it had not yet shown a recovery trend. However, in the second quarter of this fiscal year, we have finally seen signs of recovery. In addition, revenue increased due to the addition of cargo-partner CP. On the other hand, a decline in gross profit per unit price in the forwarding business, excluding ocean transport from overseas, a decrease in the handling of infectious disease related supplies, and increased costs such as labor costs, had a significant impact, resulting in a decrease in our business profit and all other profits below. The reason for the large decrease in operating profit compared to business profit is that NX Transport and Nippon Express will also be consolidated in the first quarter due to the integration of the special combined delivery business with Meitetsu Transport Co., Ltd.
This was mainly due to the recording of an impairment loss related to the business in preparation for its integration into the group. Please refer to pages seven and eight of the document for a breakdown of the increase/decrease in revenue and operating profit, taking into account variable factors. Next, regarding the figures announced on May 13th, all profits below operating profit fell short of expectations. Please see page six of the document. As mentioned above, the downturn in logistics, Japan and overseas, was significant, and I will explain the details of this together with a Q o Q comparison of core business profit. Please see page nine. As stated in the materials, business profit increased on a Q o Q basis. However, this was mainly due to the lump sum processing of fixed asset taxes and other expenses in first quarter. In reality, sales increased but profits decreased.
Regarding the situation, first, please turn to page 11 for an overview of the forwarding business. This shows the quarterly handling volume of air forwarding originating from Japan, as well as the trends in index gross profit per unit and gross profit amount. Within this, the handling volume increased by 7.3% Q o Q, which was an increase that exceeded our expectations. However, amid rising airfares, we had expected that the gross profit index per unit shown by the broken line would be able to maintain the first quarter level due to spot space purchases. However, profitability has deteriorated due to a 7.9 point drop. This caused a downward trend. On the other hand, strengthening space control has led to an improvement in gross profit margins, and we expect profitability to recover from the third quarter onwards. Please see page 12. The volume of goods shipped from overseas also increased.
In addition, amid a recovery trend in demand, gross profit per unit improved by 0.3 percentage points, but did not reach the expected level and fell short of expectations. Please see page 13. Next, ocean freight forwarding from Japan saw an increase in volume, but with some Japanese ports being cut, space suddenly became tight, causing ocean freight rates in May to rise at a pace never seen before. Due to the time lag in this pass on, the gross profit index, which we had expected to maintain at the same level as in the first quarter, fell 8.5 points, resulting in a slight decrease in gross profit. On the other hand, gross profit margins have recently been improving as the market has stabilized, and we expect them to recover from the third quarter onwards.
Furthermore, amidst the turmoil in the ocean transport market, our ability to secure space has led to an increase in business, including with new customers, and we believe that we will be able to expand in terms of volume as the market recovers in the future. On the other hand, for shipments originating from overseas, although the increase in volume was limited to around 2%, gross profit margin rose steadily by 6.9 points amid an upward trend in freight rates, achieving profit levels roughly in line with expectations. Under these circumstances, the overall outlook for the forwarding business, with the exception of overseas ocean freight forwarding, has remained below our earnings forecast. Next, please turn to page 14. In order to grasp the trends of each business in broad terms, this document compiles data on the performance of each organization, categorizing them according to their main business activities.
Taking into account the status of the forwarding business that I have just explained, I would like to explain the QoQ status of each business. First, in the Logistics and Japan segment, gross profit per unit for international air forwarding decreased, but the decrease in gross profit amount was limited to a slight decrease due to an increase in volume. However, profitability declined and profits fell due to increased outsourcing costs, such as vehicle hire costs due to increased volume and rising labor costs. Next, in ocean freight forwarding, gross profit in the NVG business decreased slightly. However, QoQ sales and profits increased mainly due to an increase in overseas relocations, resulting in an upward trend.
On the other hand, for logistics, we expected to be able to absorb the effects of spot handling in the first quarter, the rebound decline during the peak moving season, and increased labor costs through rate revisions and an increase in handling volume. As a result, QoQ had expected to achieve roughly the same level of operating profit, but profits actually decreased due to the expansion of price revisions, the reduction in their effectiveness due to an increase in outsourcing costs, and insufficient expansion in transaction volume. This business saw the largest decline, and as a result, the Logistics and Japan segment saw actual revenue increase and profit decrease on a QoQ basis. This was a decline of about JPY 3 billion compared to the forecast of an increase of JPY 6.3 billion, mainly due to the impact of lump-sum expenses such as fixed asset taxes.
This situation is one of the biggest challenges facing our group's reforms, and we believe that there are structural problems in our domestic logistics business. At the same time, this is also the segment in which we expect the greatest return from reforms, and we will continue to review the allocation of management resources there. Next is the Logistics and Overseas segment. In air forwarding, gross profit unit price improved slightly, and gross profit amount increased due to an increase in volume. However, in the Americas, profits were pushed down by an increase in outsourcing costs due to an increase in perishable cargo, which has a low gross profit margin. As a result, the actual profit fell short of expectations of a QoQ increase. On the other hand, ocean freight forwarding profits increased by about JPY 600 million, roughly in line with our expectations.
In addition, although the logistics business saw an increase in sales and profits, it did not see a full-scale expansion in business volume and fell short of expectations. As a result, the Logistics and Overseas segment's QoQ profit fell short of the forecast of an increase of JPY 3.6 billion by just under JPY 4 billion. I have explained the situation by business segment above. As logistics demand recovers, we believe that the key will be to maintain an appropriate level of unit gross profit in the forwarding business, as well as to improve the profitability of the domestic logistics business. In addition to strengthening aviation space control, we will also work to revise fees and in-depth review of contracts for domestic logistics. From a medium to long-term perspective, we will also aim to expand our global business by further enhancing our account management capabilities.
At the same time, we will continue to optimize the allocation of management resources, focusing on expanding our share of the domestic logistics market and improving profitability and capital efficiency as key issues. In addition, page 15 of the document provides the income and expenditure by business segment for each overseas region, and pages two and three of the supplementary materials provide details on changes in the external environment. Please also refer to the following. Please turn to page 17. As a result of comprehensively taking into consideration the current situation outlook, we have decided to revise our full-year consolidated financial forecast upward for revenue and downward for each profit item below business profit.
Regarding CP's forecast, we are using the figures stated in the materials, but we expect the amortization of intangible assets to be approximately JPY 3 billion in the fourth quarter, which will be determined through the purchase price allocation procedure. Please see page 21. We compare the status of earnings forecast revision by segment. As I explained earlier, there was a recovery in logistics demand, and while revenue expanded in the first half of the year, business profit declined. However, profitability in the forwarding business began to recover in June and has continued to recover since July. On the other hand, the domestic logistics demand recovery is weak and is expected to remain sluggish for the time being, leading to a large revision in the Logistics Japan forecast.
Under these circumstances, assuming a full recovery in logistics demand going forward, we expect profits to recover from the third quarter onwards, mainly in international forwarding. While we will do our utmost to secure short-term performance, we will continue to work towards achieving our long-term vision by accelerating business growth in global markets and promoting the restructuring of our Japanese business, as well as by implementing organizational and business structure reforms. Please refer to pages 4- 13 of the supplementary materials for details, such as an overview of each segment. I'd like to explain the progress of our management plan. Please turn to page 23. Although we are currently facing a difficult situation, we believe that in order to realize our long-term vision, we need to accelerate the pace of change.
We position the new management plan as the second step toward realizing our long-term vision and will accelerate our transformation while also pursuing management that is mindful of capital cost and improving corporate value. The new plan sets out three basic policies as outlined in the document: accelerating business growth in the global market, restructuring our Japanese business, and enhancing sustainability. We consider promotion of business management to be an important theme. Today, I will focus on our business growth strategy and the restructuring of the Japan business. Regarding the promotion of sustainability management, we have documented our progress on page 27, and we would like to explain the details at our IR day scheduled for next month. First, please turn to page 24 to learn about our business growth strategy. Regarding key industries, our transaction record is as shown in the document.
Compared to the previous year, there was a reactionary decline due to the fall in unit prices for forwarding business, but logistics handling, such as warehousing, expanded overall, both domestically and overseas. As a result, with the exception of the technology sector, which was heavily affected by the sluggish Chinese economy, we believe that progress has exceeded the benchmark of 50% towards the 2024 target, indicating that progress has been generally solid. Please turn to page 25. Next, in terms of business axis, the actual volume performance of air and ocean freight forwarding, as well as sales of warehouse delivery, are as stated in the materials. Regarding aviation, according to IATA statistics, global international cargo traffic in May was up 13.6% compared to the same month last year, but down 1.6% compared to 2019. This was due to the e-commerce increase and disruptions to marine transportation.
Under these circumstances, our company's transaction volume increased 36.4% compared to the previous year due to the acquisition of CP. On the other hand, excluding the impact of CP, the increase was only 4.2%, but in the second quarter, transaction increased by 8.7%, showing a recovery. In addition, although airfares vary by lane, overall, they remain at a level about 35% higher than before the outbreak of the infection and are expected to remain at this level in the future due to the solidity of e-commerce related demand. As for marine transport, cargo movements in major trade lanes continue to increase compared to the previous year, increasing by 7.5% in the cumulative January to May period. On the other hand, our trading volume increased by 25.7% year-on-year due to the acquisition of CP.
However, due to the continued return to direct shipping with shipping companies, the increase or decrease excluding the impact of CP was only 1.8%. In addition, freight rates had been declining as operations on detour routes due to the situation in the Red Sea and other factors subsided, but have risen sharply since late April due to increased demand. On the other hand, there are concerns about supply chain disruption due to factors such as the increasing tariff on goods sold in the U.S. and the state of labor management negotiation at ports on the East Coast of North America, which suggest that demand is coming ahead of the peak season, and we believe that it is necessary to keep a close eye on demand trends. Under these circumstances, as explained earlier, gross profit margins for air and ocean freight forwarding originated from Japan declined.
However, due to strengthened space control, air freight improved in June. Additionally, we expect the decline in offshore demand to bottom out and to recover in the future, and we will continue to work on secure quantities and reduce utilization costs. Next, regarding sales of warehousing and distribution, which we set as a KPI for strengthening the provision of logistic solutions, the actual results for the second quarter of 2024 are as follows. This represents 3.0% increase over the previous year. We believe that the initiatives and investments we have implemented thus far are beginning to produce results, particularly in the automobile, semiconductor, and pharmaceutical industries. However, we will continue to strengthen our efforts. Please see page 26.
Next, regarding the restructuring of our Japanese business, we aim to increase our operating profit margin from 3.9%- 5.9% by promoting three initiatives: transforming into a more customer-oriented company, continuing and deepening the strengthening of our Japanese business, and continuously reforming and reviewing our business foundation. Regarding the continuation and deepening of the strengthening of our Japanese business, we are making progress as described in the material. In addition to the measures that have been implemented since the previous plan, we will expand measures such as reviewing our network business foundation and introducing cutting-edge technology in warehouse operation to improve profitability. With regard to continuously informing and reviewing our business foundation, we are considering introducing an in-house company system and proceeding with the integration of a special cargo business.
In addition, we will proceed with streamlining and consolidating overlapping businesses and functions within that group and strengthen the specialized business. Please see page 28. We have listed the main initiatives aimed at achieving our management plans. Although the second quarter of this fiscal year was a tough one, we have made progress on various initiatives, such as strengthening our account management system. As explained in the progress report on the management plan, we believe that results are steadily emerging. We will accelerate our efforts and would like to provide more details on this at our IR day scheduled for next month. Please see page 30. Regarding shareholder returns for the fiscal year ending December 2024, the company expects interim and final dividends of JPY 150 each for a total of JPY 300 for a dividend payout ratio of 65.0%.
The total return ratio, including the acquisition of JPY 10 billion of treasury stock, is expected to be 90.1%. In addition, as announced today, the company has decided to retire its treasury stock and conduct a stock split. Going forward, we will continue to strive to increase our corporate value, achieve the targets of the management plan, and enhance shareholder returns. I have now explained to you the overview of our second quarter financial results for the fiscal year ending December 2024. That's it from me. Thank you very much. Next, we will move to Q&A session. But before we move on to Q&A session, there is one supplementary explanation from Otsuki. Please.
Now I'd like to add a few comments on the income and expenditures by business segment. Please see page 14 of the document. In our segment disclosure, we disclose information on logistics divided into five areas, Japan and four overseas regions. However, we have received requests for file to divide this into logistics, mainly focused on air forwarding, ocean forwarding and warehouse delivery. In response to this, we created the income and expenditures by business segment that you are viewing.
This report treats each group, company, branch, or department as a single unit, links them to a business segment based on their main business activities, and groups and summarizes performance data. Although it does not represent the strict income and expenditure results of each business segment, such as air freight, ocean freight and logistics, we believe that disclosing this information on an ongoing basis will aid in undertaking the breakdown of our group's logistics business and quarterly performance trends.
On the right side, the first and second quarterly trends are shown for Japan and overseas. Here are some notes comparing the two quarters. Also on page 15, you will see the income and expenditure by business for each overseas region and in the preparation notes on the bottom left, you will find notes on the preparation I just explained. Please refer to them. There are still many areas that need to be polished, and it is not yet complete, but we would like you to take a look at it first, and we would like to improve any parts that can be improved based on your feedback. We would like to continue to enhance the information we disclose and deepen our dialogue with you. We appreciate your continued support. Thank you very much. That's all from me. That's all from our company presentation.