Sumco (3436) Q4 2024 earnings summary

Executive summary

• FY2024 net sales were ¥396.6 billion, down 6.9% year-on-year, with operating profit at ¥36.9 billion, a 49.5% decrease; profit attributable to owners of parent dropped 68.9% to ¥19.8 billion.

• Q4 FY2024 results exceeded forecasts by ¥2–3 billion, mainly due to higher-than-expected volumes and strong sales of leading-edge wafers.

• Extraordinary losses of ¥5.8 billion were recorded due to the Miyazaki Plant reorganization and business structural reforms.

• Market remains polarized: robust demand for AI/data center applications, but weak for legacy, consumer, industrial, and automotive segments.

Financial highlights

• Full-year sales declined by ¥29.3 billion and operating income by ¥36.1 billion year-on-year; EBITDA for FY2024 was ¥114.0 billion, down ¥30.6 billion.

• Net profit attributable to owners was ¥19.8 billion, down ¥44.0 billion year-on-year; comprehensive income dropped 56.9% to ¥35.5 billion.

• OPM was 9.3%, EBITDA margin 28.8%, and basic EPS was ¥56.84, a decrease of ¥125.75 year-on-year.

• CapEx was ¥214.9 billion, down from ¥315.4 billion in FY2023; depreciation rose to ¥78.9 billion, up ¥7.5 billion year-on-year.

• Cash and cash equivalents at year-end decreased by ¥60,682 million to ¥95,671 million.

Outlook and guidance

• Q1 FY2025 sales projected at ¥102 billion, operating income ¥4.5 billion, net profit ¥1.5 billion, and EPS ¥4.29; operating margin expected to fall to 4.4%.

• Operating income expected to fall ¥2.5 billion quarter-on-quarter due to higher depreciation and costs; depreciation to increase by ¥2.3 billion sequentially.

• Dividend guidance: year-end dividend ¥6, full-year DPS ¥21, payout ratio 39.7%.

• Gradual recovery in 300mm wafer shipments is expected, while 200mm and smaller wafers remain sluggish.

• Company will focus on modernizing equipment, strengthening 300mm wafer supply, and reorganizing small-diameter wafer production.