Financial Results for the Second Quarter (Interim Financial Results) of FY2024
On October 31, we announced our interim financial results for FY2024.
During the period under review, the global economy as a whole showed a moderate growth trend.
However, the outlook remains uncertain due to geopolitical risks, sharp fluctuations in exchange rates, and the slowdown of the Chinese economy.
Despite such circumstances, we have achieved all-time highs in terms of net sales, business profit, and profit attributable to the parent company for the interim period, surpassing those of the same period last year.
Summary of Interim Results for FY2024
Net sales: 309.2 billion yen (+3.8% YoY)
Business profit: 17.3 billion yen (+35.4% YoY)
Interim profit attributable to owners of the parent: 10.0 billion yen (+72.1% YoY)
Net sales were affected by the sharp appreciation of the yen during the July-September period, but for the first half of the year as a whole, sales increased compared to the same period last year.
Business profit increased mainly due to cost reductions, higher production efficiency, and sales efforts.
Although reasons varied by region, the slowdown in the shift to EVs, intensified competition among car manufacturers, and natural disasters also caused the Group to make various adjustments, such as sudden changes in production.
I would like to extend my gratitude to all the employees who are working hard under such circumstances with the spirit of “Banji-nissei.” ※
In the Automotive Products Divisions, net sales increased from the same period last year, partly due to exchange effects, despite the impact of production cutbacks by major customers.
In addition, business profit increased by 2.3 billion yen compared to the same period last year due to the results of cost reduction and sales price reflection efforts.
In the General Industrial Products Divisions, the Chemical and Plastic Products Business Unit increased sales and profits compared to the same period last year, as the results of structural reforms are being seen ahead of schedule.
Industrial Hose Business, Industrial Products and Materials Business and other divisions have also contributed to increased sales and profits.
As a result, business profit of the General Industrial Products Divisions also increased by 1.6 billion yen compared to the same period last year.
Revision of FY2024 Earning Forecast
We have revised our forecast for the current fiscal year from what we announced in July, in light of the interim results, the outlook for the second half of the fiscal year, and the current exchange rate situation.
Net sales: 615 billion yen (-10 billion yen)
Business profit: 38.0 billion yen (+5.0 billion yen)
Net income attributable to owners of the parent: 22.2 billion yen (+4.5 billion yen)
* Figures in parentheses are in comparison with the figures announced in July. Assumed exchange rates for the third quarter onward have been changed since the July announcement.
Compared to the July announcement, net sales are down, but this is mostly due to the impact of exchange rates.
On the other hand, business profit is expected to increase by 5.0 billion yen due to the effects of cost reduction, overhead cost containment, and sales price reflection.
The outlook remains uncertain, especially in China, Europe, and the Americas.
However, there are many areas where we can do the best we can with our own efforts.
In the past few years, sudden increases and decreases in production volume have occurred frequently, and production was somewhat disrupted at first, but based on our experience, we are changing into a stronger structure.
It is in times like these that we should promote Kaizen activities that are difficult to carry out on a day-to-day basis, and we should be more conscious than ever of S.E.C.Q. (Safety, Environment, Compliance, and Quality).
I believe that all of us in the Sumitomo Riko Group share the same desire to “make a better company and a better society,” so let's continue to work hard to achieve this goal with a “Banji-nissei” spirit.
＊Banji-nissei: Do your sincere best, not only in business, but also in every aspect of your life.
(To pay attention to any matters including business and work wholeheartedly on everything.)