Sumitomo Chemical Reports Strong FY 2024 Performance

Sumitomo Chemical Co ( (SOMMF) ) has released its Q4 earnings. Here is a breakdown of the information Sumitomo Chemical Co presented to its investors.

Sumitomo Chemical Co., Ltd. is a diversified chemical company listed on the Tokyo Stock Exchange, engaged in the production and sale of a wide range of chemical products, including petrochemicals, energy, and functional materials, with a notable presence in the pharmaceutical and agrochemical sectors.

Sumitomo Chemical has reported its consolidated financial results for the fiscal year 2024, showcasing a significant improvement in its financial performance compared to the previous year. The company achieved a sales revenue of ¥2,606.3 billion, marking an increase from the previous year, driven by strong performance across various business segments.

Key financial highlights include a core operating income of ¥140.5 billion and an operating income of ¥193.0 billion, attributed to improved market conditions and strategic measures such as debt forgiveness in its affiliate, Petro Rabigh. Net income attributable to owners of the parent was ¥38.6 billion, reflecting a turnaround from the previous year’s losses. The company also reported positive cash flows from operating and investing activities, resulting in a free cash flow of ¥318.3 billion.

Looking ahead, Sumitomo Chemical anticipates a sales revenue of ¥2,340.0 billion for fiscal year 2025, with core operating income projected at ¥150.0 billion. The company remains focused on enhancing its profitability through strategic investments and maintaining stable dividend payments, aiming for a dividend payout ratio of around 30% in the medium to long term.