Pacific Metals (5541) Q2 2027 earnings summary

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.

• FY27 guidance was revised to ¥11,188m net sales, ¥1,831m ordinary profit and ¥1,321m attributable profit; an operating loss of ¥6,035m remains forecast.

Financial highlights

• Gross loss was ¥3,066m versus ¥3,139m a year earlier; operating loss was ¥4,009m versus ¥4,042m, and ordinary profit was ¥957m versus a ¥1,086m loss.

• Attributable profit was ¥645m versus a ¥1,095m loss; H1 included a ¥1.3bn reversal of inventory write-downs.

• Comprehensive income was ¥504m versus a ¥1,696m loss YoY; non-operating income included ¥4,672m share of profit from equity-method entities.

Outlook and guidance

• Revised FY27 forecast: net sales ¥11,188m, operating loss ¥6,035m, ordinary profit ¥1,831m, attributable profit ¥1,321m and basic EPS ¥75.94; ordinary and attributable profit forecasts rose 162.3% and 885.8% versus Aug. 6.

• FY27 ferronickel production and sales are forecast at 3,406t and 3,800t; assumed LME nickel price is $17,196/t and exchange rate ¥158.70/$.

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

• High nickel ore, fuel, raw-material and electricity costs remain headwinds; cost controls and flexible procurement are planned.