Financial Results for FY2024

In FY2024, our company-wide efforts to implement structural reforms and operational improvements bore fruit, enabling us to achieve record highs for the second consecutive year in sales, business profit, and final profit.
This is the result of your flexible and steady actions.
Amidst further uncertainties such as exchange rates, tariffs, and raw fuel prices, FY2025 will be a year that will require even greater unity and ingenuity to maintain and strengthen our earning power and achieve sustainable growth.

The consolidated financial results for the full year of FY2024 announced on May 9 are as follows
-Net Sales: 633.3 billion yen (+2.9% YoY)
- Business profit: 43.4 billion yen (+22.4% YoY)
- Net profit attributable to owners of the parent company: 27.4 billion yen (+47.1% YoY)

Even amid ongoing production adjustments by major customers and geopolitical risks, our Group was able to maintain a certain level of production and achieve high company-wide results by steadily working to reduce costs, optimize selling prices, and review its profit structure.

In the fourth quarter (January-March) in particular, although we had expected production cuts and tariff effects in China, the actual effects were within our expectations, and the cost measures we formulated in advance were successful, resulting in a better-than-expected landing in the fourth quarter than we had forecast at the time of the third quarter.

Although the yen's depreciation had a certain positive impact on sales, we believe that the daily kaizen efforts made in various parts of the company contributed even more to the increase in profits.

For FY2025, we expect the following declines in net sales and business profit.
- Net sales: 620 billion yen
- Business profit: 39.0 billion yen
- Net Profit attributable to owners of the parent company: 19.5 billion yen

Against this backdrop, we expect external factors to deteriorate, such as changes in tariff policies, sharp exchange rate fluctuations (assuming a strong yen), and soaring raw material and fuel prices.
However, our business structure has steadily become more resilient (i.e., more responsive and resilient to change) as a result of the structural reforms that we have accumulated over the years.
In fiscal 2025, we will continue to implement measures such as cost reduction and optimization of selling prices, while steadily working to achieve the earnings targets set forth in the “2025P” mid-term management plan.

Future Policies and Requests for Everyone

As in the past, we will continue to steadily promote structural reforms and cost improvement activities at our bases which have issues to tackle. At the same time, we will accelerate the development of high-value-added products and technologies while considering collaboration with other companies, aiming to enhance corporate value and achieve sustainable growth.
To realize this goal, it is essential to accumulate steady daily improvements in operations, and to gain insight and suggestions from the workplace. Therefore, allow me to repeat that I look forward to your creativity and challenges.
In addition, S.E.C.Q. (Safety, Environment, Compliance, and Quality) is becoming more important than ever.In order for us to continue to be a company trusted and credible by society, it is of the utmost importance that we steadily implement each and every initiative at each workplace.
It is precisely in these uncertain times that we will once again return to the Sumitomo Business Spirit of “Banji-nissei,” “Shinyo-kakujitsu,” and “Fusu-furi,” and continue to build on our work with integrity and care.
The results of the 2024 fiscal year are the fruit of the efforts and cooperation of each and every one of you.
I would like to thank you again.
I am confident that fiscal 2025 will be a year in which we will overcome changes in the environment and further enhance our capabilities for sustainable growth.
Let us not be bound by the concepts of the past, but rather, let us take change as an opportunity and boldly take up the challenge!