Sumitomo Corporation (8053) Q4 2024 earnings summary

Executive summary

• FY2023 attributable profit fell 31.7% to ¥386.4bn, reflecting weaker resource-related earnings and ¥114.0bn of net one-off losses; profit excluding one-offs was ¥501.0bn.

• FY2024 attributable profit is forecast at ¥530.0bn, with 12% ROE; adjusted profit is forecast at ¥510.0bn.

Financial highlights

• Revenue rose 1.4% to ¥6,910.3bn and gross profit increased to ¥1,342.5bn; profit before tax fell to ¥527.6bn.

• Net income was ¥426.1bn and parent-attributable profit ¥386.4bn, down ¥173.1bn and ¥179.0bn, respectively.

• Operating cash flow was ¥608.9bn, free cash flow ¥389.6bn and basic profit cash flow ¥510.9bn.

• Comprehensive income rose to ¥896.9bn from ¥810.6bn, supported by ¥470.7bn of other comprehensive income, including foreign currency translation gains.

• Adjusted free cash flow after shareholder returns was positive ¥135.5bn; SHIFT 2023 cumulative result was positive ¥89.0bn.

Outlook and guidance

• FY2024 attributable profit forecast: ¥530.0bn, up 37.2% YoY; EPS forecast ¥433.74 and ROE 12%.

• Excluding one-offs, profit is forecast at ¥510.0bn versus ¥501.0bn in FY2023; non-resource earnings are expected to grow ¥60.0bn.

• Forecast assumes ¥140/$; mineral resources profit is expected to decline ¥9.0bn, mainly on lower coal prices, while non-resource growth is expected in tubular products, construction and mining systems, real estate and agribusiness.

• FY2024 dividend forecast is ¥130/share, up ¥5 YoY; progressive dividends are intended to be maintained or increased with profit growth.

• Outlook assumes current business conditions generally continue, with inflation, monetary tightening and geopolitical risks among the uncertainties.