Itochu Corp (ITOCF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone, this is Hachimura CFO. Today I'd like to explain our results for the first quarter using the presentation titled Business Results Summary. Let's begin with page 3 of the PowerPoint showing the business results. Our consolidated net profit was 283.9 billion yen. This was partly driven by progress made in our asset replacement strategy and we achieved a record Q1. In terms of year-on-year, it was 137% of the same period last year, and we made 32% progress towards the 900 billion yen consolidated net profit target. The numbers are not evenly spread throughout the quarters, but we made a good start in line with our initial plan. There were a lot of one-off impact in Q1, but our business model tends to be concentrated towards the second half of the year. We have no concerns in achieving the annual budget and are making good progress in the various parts of our profit growth plan. As for the impact from tariffs, as we highlight at the bottom points section, the impact in Q1 was minimal. And thanks to the agreement reached on reciprocal tariffs, there is now less uncertainty. However, that doesn't change the fact that there was a big increase in the tariff amount, and we need to continue to look out for the impact of Trump 2.0 policies on the economy, not just from tariffs. And we remain cautious because the subject of the negotiations could change at any time and are not yet final. In terms of the year-on-year comparison, For the textile, energy and chemicals, food, ICT and financial business and the eighth did well, which are the non-resource businesses and for others, which includes one-off profit items such as the CPP capital gain. Meanwhile, for metals and minerals, general products and realty and machinery did not perform that well. As a result, the br...