Sumitomo Chemical Announces Its Financial Forecast Revision for FY2023, Financial Forecast and Projected Dividend for FY2024
April 30, 2024 at 01:17 pm EDT
Share
Based on recent performance trends, Sumitomo Chemical Co., Ltd. has made revisions to its consolidated financial forecast for FY2023 (the full year ended March 31, 2024), previously announced on February 2, 2024.
Reasons for the Revision
Regarding the consolidated financial forecast for FY2023, operating income and net income attributable to owners of the parent are expected to fall short of the previous forecast due to the impairment loss in patent rights for MYFEMBREE (a treatment for uterine broids and endometriosis) and goodwill related to business in North America in Pharmaceuticals, as announced in a press release today entitled 'Announcement of Impairment Loss.
Consolidated Financial Forecast for FY2024
Regarding consolidated financial forecast for FY2024, Sumitomo Chemical forecasts that sales revenue will be JPY2,670.0 billion, core operating income and operating income are projected to be JPY100.0 billion and JPY70.0 billion, respectively, and net income attributable to owners of the parent to be JPY20.0 billion, assuming an exchange rate of JPY145.0/US$ and a naphtha price of JPY75,000/kl.
Projected Dividend for FY2024
Sumitomo Chemical places a high priority on shareholder return, and makes it a policy to maintain stable dividend payments, while giving due consideration to its business performance, the dividend payout ratio for each fiscal year, and the amount of retained earnings necessary for future growth. Regarding the projected dividend for FY2024, Sumitomo Chemical plans to pay an annual dividend of 9 yen per share.
Cautionary Statement
Statements made in this document with respect to Sumitomo Chemical's current plans, estimates, strategies and beliefs that are not historical facts are forward looking statements about the future performance of Sumitomo Chemical. These statements are based on management's assumptions and beliefs in light of the information currently available to it, and involve risks and uncertainties. The important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, general economic conditions in Sumitomo Chemical's markets; demand for, and competitive pricing pressure on, Sumitomo Chemical's products in the marketplace; Sumitomo Chemical's ability to continue to win acceptance for its products in these highly competitive markets and movements of currency exchange rates.
Sumitomo Chemical Co Ltd is one of the Japanese largest chemical groups. The group is also manufacturing and marketing pharmaceutical products. Net sales break down by family of products as follows:
- petrochemical and plastic products (25.8%): ethylene, polyethylene, propylene, elastomers, agricultural films, etc.;
- pharmaceutical products (23.9%): ethic drugs, radiopharmaceutical products, etc.;
- telecommunication chemical products (18.9%): optic films, pigments, filters, etc.;
- agrochemical and fine chemistryproducts (18.5%): insecticides, herbicides, fertilizers, food additives, etc.;
- functional chemical products (10.7%): methanol, caustic soda, aluminum hydroxide, alumina, nitric acid, acrylonitrile, active pharmaceutical ingredients, polymeric additives, resorcine, colorants, etc.;
- other (2.2%).
Net sales break down geographically as follows: Japan (31.7%), China (19.2%), Asia (19.5%), North America (17.7%), Europe (4.2%) and other (7.7%).
SUMITOMO CHEMICAL CO., LTD. 
