Fiscal Year 2023 Financial Results

On May 9, we announced our financial results for the fiscal year 2023.
In FY2023, the normalization of economic activity and the recovery of automobile production at our major customers led to high production at our group.
The significant depreciation of the yen was also one of the factors contributing to the larger sales.
While we are grateful for the increase in orders, I recognize that it has been a busy period for our employees.
Thank you for your flexibility in responding to changes.

In the fourth quarter (January-March), although there was an impact of production cutbacks in Japan and China, the impact was within the expected range, and progress in cost reductions and sales price reflections allowed us to land on a higher level than announced in the 3Q.
As a result, the full-year results for FY2023, from net sales to business profit to the final net income attributable to owners of the parent company, were all the highest in our history.

Summary of FY2023 Financial Results

Sales: 615.4 billion yen (+13.8% YoY)

Business profit: 37.0 billion yen (vs. previous year: +2.1x)
Net profit attributable to owners of the parent: 18.6 billion yen (vs. the previous year: 2.8x)

Forecast for the full year 2024

Net sales: 610 billion yen
Business profit: 31.0 billion yen
Net profit attributable to owners of the parent: 16.1 billion yen

As mentioned above, in FY2023, selling prices to customers were set higher in accordance with the rules for raw material and fuel prices, etc., which soared in FY2022.
Under these circumstances, the reality is that the temporary decline in raw material prices during FY2023 resulted in a larger profit margin for our Company.
On the other hand, since raw material prices fell during FY2023, as per the rule, we expect raw material prices to rise again in FY2024 while selling prices to customers will be lower.
Therefore, it appears that profits will be temporarily lower in FY2024 compared to FY2023.

Despite these circumstances, our business structure has become more solid as a result of structural reforms and operational improvements in the Corona Pandemic, and we are definitely improving our capabilities.

We are confident that we can achieve solid results if we continue with and strengthen operational improvements and steadily promote business operations.

In addition, there is no need for us to feel happy or sad about the ups and downs during the year, as the soared raw material and other costs in FY2024 will be reflected in the selling prices in FY2025.

With the theme of 2025P “Further enhancing profitability and Strengthening the management foundation for sustainable growth”, let us continue to improve our daily operations and further enhance our capabilities.

The external environment will continue to be uncertain, including the protracted situation in Ukraine and the Middle East and inflation.

However, there are many areas where we can do the best we can with our own efforts.

This fiscal year is expected to be busy with continued high operations, but it is precisely because we are in this period that we must be more aware than ever of S.E.C.Q. (safety, environment, compliance, and quality)!

SUMITOMO RIKO President's Blog

The contents of this blog are compiled by the Public Relations and Investor Relations Department of Sumitomo Riko Company Limited as the secretariat and posted on the blog based on the speeches and wr