Sojitz Corp Unsp/Adr (SZHFY) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good afternoon, this is Makoto Shibuya. In this briefing, I will be referring to the slide deck titled presentation materials for financial results for the first quarter ended June 30th, 2025, which is available on our website. Slide four summarizes Q1 results. Consolidated profit for the period was 21.1 billion yen, down 1.9 billion yen from the same period last year. This is 18% against the full-year forecast of 115 billion yen announced at the beginning of the financial year. We expect the split between the first half and second half to be 40 to 60, and therefore Q1 results represent a solid start. Core operating cash flow was also solid at 22% against the full-year forecast. We will continue our pursuit of profit growth accompanied by cash. Before we discuss the breakdown by segment, let me first provide an overview of Q1 results. While some segments such as energy solutions and healthcare and chemicals performed solidly, there were negative factors including absence of one-time gains recorded in the previous year, decline in cooking coal prices, and delayed recovery in automotive. With regard to the business environment, uncertainty remains. but the impact of US tariffs has been limited so far. At this point in time, we expect to manage the impact within the 5 billion yen buffer we factored in the initial forecast. And that's why we have not made any change with regard to the full year forecast in regard to this matter. Let me discuss further details starting from slide five. Slide five is appeal summary. Gross profit came down by 2.7 billion yen from the same period a year ago to 82.2 billion yen. Slide 9 shows a breakdown by segment. Metals, mineral resources and recycling came significantly down due to the decline in coking coal prices. Automotive was also do...