Sumitomo Metal Mining (5713) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 rose 11.1% year-over-year to ¥410.3 billion, driven by higher copper and gold prices, yen depreciation, and steady production at mines and smelters.

• Profit before tax increased 13.1% year-over-year to ¥30.7 billion, mainly due to top-line growth and higher finance income.

• Profit attributable to owners of parent grew 6.5% year-over-year to ¥22.1 billion.

• Comprehensive income surged 93.2% year-over-year to ¥106.4 billion, reflecting significant foreign exchange gains.

Financial highlights

• Gross profit for Q1 FY2024 was ¥47.3 billion, up from ¥36.3 billion in the prior year.

• Basic and diluted EPS increased to ¥80.34 from ¥75.45 year-over-year.

• Total assets rose to ¥3,223.5 billion as of June 30, 2024, up from ¥3,027.7 billion at March 31, 2024.

• Net cash used in operating activities increased to ¥19.8 billion, mainly due to higher inventories.

• Net cash provided by financing activities rose to ¥62.7 billion, reflecting increased bond issuance.

Outlook and guidance

• Full-year FY2024 net sales forecast revised to ¥1,553.0 billion, up 7.4% year-over-year.

• Profit before tax projected at ¥111.0 billion (+15.9%), profit attributable to owners of parent at ¥73.0 billion (+24.6%).

• Assumptions: copper $9,338/t, nickel $7.71/lb, gold $2,159.4/TOZ, exchange rate ¥151.47/$ for FY2024.

• Demand for electric/hybrid vehicles and electronic parts expected to remain robust; copper market seen in short supply, nickel in oversupply.