Pacific Metals (5541) investor relations material

Executive summary

• H1 FY27 net sales rose 22.1% YoY to ¥5,449m; operating loss narrowed to ¥4,009m, while ordinary profit and parent-attributable profit returned to ¥957m and ¥645m, respectively.

• Results reflected a challenging ferronickel market and inventory write-downs, partly offset by ¥4,672m of equity-method profit; FY27 guidance was revised upward for sales and earnings.

Financial highlights

• Net sales ¥5,449m, up 22.1% YoY; gross loss ¥3,066m versus ¥3,139m a year earlier.

• Operating loss ¥4,009m versus ¥4,042m; ordinary profit ¥957m versus a loss of ¥1,086m YoY.

• Profit attributable to owners ¥645m versus a loss of ¥1,095m; comprehensive income ¥504m versus a loss of ¥1,696m YoY.

Outlook and guidance

• Revised FY27 forecast: net sales ¥11,188m, operating loss ¥6,035m, ordinary profit ¥1,831m, parent-attributable profit ¥1,321m and basic EPS ¥75.94.

• Revised ferronickel sales volume forecast to 3,800t and production to 3,406t; full-year applicable nickel price forecast $7.80/lb and exchange rate ¥158.70/$

• H2 earnings expected to benefit from reversal of part of H1 inventory write-downs; investment income from gain on changes in equity expected to affect extraordinary income.

• High nickel ore, fuel, raw-material and electricity costs, plus crude-oil-driven energy inflation, remain earnings headwinds; cost controls and flexible procurement are planned.