Sumitomo Chemical revises full-year forecasts upward on strong pharma performance

Sumitomo Chemical Co., Ltd. reported a share of loss of investments accounted for using the equity method of ¥17,513 million for Q2 FY2025, primarily due to a deterioration in Rabigh Refining and Petrochemical Company's performance. However, this was partially offset by a foreign exchange gain of ¥15,232 million due to currency fluctuations. The company’s Q2 FY2025 net income attributable to owners of the parent was ¥39,699 million, significantly exceeding the previous forecast of ¥25,000 million.

The company revised its full-year FY2026 consolidated financial forecast upward, with core operating income now projected at ¥185,000 million (up from ¥150,000 million) and net income attributable to owners of the parent at ¥45,000 million (up from ¥40,000 million). This revision is largely attributed to strong sales of ORGOVYX in North America and reduced expenses within Sumitomo Pharma, which saw its Q2 FY2025 core operating income reach ¥97,320 million, a substantial increase from the previous forecast of ¥72,000 million.

Despite a decline in sales revenue from ¥1,241,395 million in Q2 FY2024 to ¥1,095,394 million in Q2 FY2025, the overall financial outlook improved. The company also disclosed a partial sale of Class A ordinary shares in Petro Rabigh to Saudi Aramco, expecting to record a net gain of approximately ¥35.0 billion in FY2025, after accounting for a share valuation loss on newly acquired Class B ordinary shares.