Sumitomo Chemical Company, Limited (SOMMY) Q1 2027 Earnings Call

Investor webinar replay

Replay transcript excerpt

It is now time, so we will begin our Q1 2026 Financial Results Conference Call. Thank you very much for joining us. Today, Yamauchi, Managing Executive Officer, will explain the financial results for FY2026 first quarter, followed by a Q&A session with Matsuo, General Manager of Accounting Department. The session is scheduled to finish at 4.50 PM. Mr. Yamauchi, please start. Yamauchi from Sumitomo Chemicals. Thank you very much for taking the time out of your busy schedule to join our conference call today. We'd like to take this opportunity to express our sincere thanks to our investors and analysts for your continued understanding and support of our company's management. I will now explain the overview of our financial results for FY26 first quarter. Please turn to slide four. Before explaining the details of the financial results, let me briefly explain the profit and loss status for Q1. core operating income increased significantly from ¥27.7 billion in Q1 of FY25 to ¥62.3 billion in Q1 of FY26. Net income attributable to owners of the parent was ¥40.8 billion in Q1, up by ¥45.3 billion from the prior year, thanks to an increase in core operating income. This was the second best Q1 core operating income and net income attributable to owners of the parent on record following Q1 of FY22, which were 64.1 billion yen and 70 billion yen respectively. In Q1, core operating income improved significantly in essential and green materials thanks to better profit margins at PetroRabic and a temporary gain on the difference between the inventory valuation of materials and their increased market price, as well as agro and life solutions due to strong shipments of crop protection products and better margins for feed additives, and in ICT and mobility solutions thanks to increa...