Sumitomo Seika Chemicals (4008) Q1 2027 earnings summary

Executive summary

• Net sales rose 13.6% year-over-year to ¥40,397 million for the quarter ended June 30, 2026, with operating profit up 47.5% to ¥3,452 million and ordinary profit up 168.5% to ¥4,315 million.

• Profit attributable to owners of the parent surged 212.2% year-over-year to ¥3,263 million, with basic EPS at ¥50.53.

• Comprehensive income increased 190.8% year-over-year to ¥3,665 million.

Financial highlights

• Gross profit for the quarter was ¥9,184 million, up from ¥7,468 million year-over-year.

• ROE for the quarter was 3.1%.

• Equity-to-asset ratio declined to 65.8% from 67.8% at the previous fiscal year-end.

• Depreciation for the quarter was ¥2,056 million, up from ¥1,306 million year-over-year.

Outlook and guidance

• FY2027 net sales forecast at ¥165,000 million, up 11.2% year-over-year; operating profit expected to decrease 24.0% to ¥11,000 million.

• Ordinary profit forecast at ¥11,200 million (down 26.6%), profit attributable to owners of the parent at ¥8,000 million (up 4.2%).

• Basic EPS forecast at ¥124.46; ROE expected at 7.6%.

• Forecasts reflect higher raw material costs and yen depreciation, with profit pressure from increased fixed costs due to Singapore plant expansion.