Itochu Corp (ITOCF) Q4 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello everyone, I am President Ishii. Thank you very much for joining us today. I will explain our FY2025 business results and FY2026 management plan. First, for FY2025 business results, please refer to page 2 of the presentation materials FY2025 business results and FY2026 management plan. consolidated net profit reached 900.3 billion yen while exceeding our initial plan of 900 billion yen marking a record high for the two consecutive years and achieving 900 billion yen stage for the first time although fy 2025 started under highly uncertain and volatile conditions including the impact of U.S. tariff policies and rising tensions between Japan and China, we steadily accumulated core profit by addressing each challenge arose, and successfully achieved our initial commitment driven by extraordinary gains from asset replacements etc. Next, core profit increased by 11.5 billion yen year-on-year, reaching 781.5 billion yen. As announced, there were negative factors in the first half of FY 2025 that we didn't expect in our initial plan including delays in the coking coal projects, sluggish iron ore prices, and underperformance in the Finnish pulp business. However, prompt countermeasures and turnaround initiatives enabled us to recover to a normalized level in the second half. On the other hand, steady growth in our core group companies, including FamilyMart, DeSant, CDC, and North American Power Business, as well as in our medium-sized businesses in the non-resource sector, contributed to accumulate core profit solidly. By segment, 5 out of our 8 division companies, textile, machinery, food, ICT and financial business, and the 8th, achieved record high core profit, highlighting the strength of our stable non-resource businesses. Core operating cash flows reached a record ...