Sharp Increase in Core Operating Income
Core operating income for Q3 was JPY 186.8 billion, up JPY 126.8 billion year‑on‑year — an increase of approximately 211% — driven by improvements across Sumitomo Pharma and Essential & Green Materials and gains on business divestitures.
Strong Net Income Attributable to Owners
Net income attributable to owners for Q3 was JPY 87.4 billion, up JPY 58.8 billion year‑on‑year (≈+206%), exceeding the November forecast for the quarter.
Sumitomo Pharma Outperformance
Sumitomo Pharma reported core operating income of JPY 111.2 billion, up JPY 86.9 billion YoY (≈+358%), supported by increased sales of Orgovyx and Gemtesa and gains from partial transfer/divestiture of its Asian business.
Essential & Green Materials Turnaround (Including Rabigh Gain)
Essential & Green Materials core operating income improved to JPY 19.8 billion, a YoY improvement of JPY 64.1 billion, reflecting a gain on the partial sale of Petro Rabigh shares, improved refining margins and lower naphtha feedstock costs.
Balance Sheet Improvement and Increased Dividend
Interest‑bearing debt fell to JPY 1.2215 trillion (down JPY 64.6 billion YoY); D/E ratio improved from 1.20x to 0.96x (improvement of 0.23x). Management raised the year‑end dividend from JPY 6 to JPY 7.5 per share (annual dividend JPY 13.5, up JPY 4.5 from prior year) with an expected payout ratio of ~40%.
Upgraded Full‑Year Guidance
Full‑year core operating income forecast was raised to JPY 200 billion (up JPY 15 billion vs November guidance). Sales forecast at JPY 2.3 trillion (up JPY 10 billion vs prior guidance). Net income attributable to owners forecast JPY 55 billion (up JPY 1.5 billion vs November guidance; cited as up JPY 10 billion YoY in presentation).
Operating Cash Flow and Positive Free Cash Flow
Operating cash flow remained positive at JPY 111.6 billion and free cash flow was positive JPY 71.8 billion for the quarter, maintaining liquidity despite year‑on‑year deterioration.