SOMMF - Sumitomo Chemical Company Limited (SOMMY) Q4 2023 Earnings Call Transcript

2024-05-17 10:25:23 ET

Sumitomo Chemical Company, Limited (SOMMY)

Q4 2023 Earnings Conference Call

May 15, 2024 03:30 AM ET

Company Participants

Keigo Sasaki - Managing Executive Officer

Conference Call Participants

Takato Watabe - Morgan Stanley MUFG Securities

Go Miyamoto - SMBC Nikko Securities

Hidemitsu Umebayashi - Daiwa

Michio Okazaki - Nomura Securities

Presentation

Operator

As it is time to start, we will now begin the Conference Call for the Presentation of our Financial Results for Fiscal Year 2023. Thank you very much for your participation. Today, Mr. Sasaki, Managing Executive Officer, will give a briefing of our financial results for fiscal year 2023 and outlook for FY 2024. Later he will be joined by Mr. Yamauchi, Executive Officer and General Manager of Accounting Department, to take questions. We will conclude the call at 5:20.

Mr. Sasaki, over to you.

Keigo Sasaki

Thank you. I'm Sasaki from Sumitomo Chemical. Thank you very much for attending our conference call despite your busy schedule. I'd like to thank the investors and analysts for your daily understanding and support to our management. Thank you very much for that.

Now, let me start with explanation of our financial results for fiscal year 2023. Please turn to Slide Page 4, consolidated financial results for FY 2023. Sales revenue was ¥2,446.9 billion, down ¥448.4 billion year-over-year. Core operating income expressing recurring earnings power had a loss of ¥149 billion, which is down by ¥241.8 billion year-on-year.

Non-recurring items not included in core operating income posted an impairment loss for Sumitomo Pharma's patent rights and goodwill and our Chiba plant Essential Chemicals manufacturing facilities and Ehime plant methionine manufacturing facilities, and the Singapore subsidiary MMA manufacturing facilities totaling ¥269.4 billion.

In addition, restructuring costs of minus ¥48.4 billion including reorganization of Sumitomo Pharma's North America subsidiary led to a loss of ¥339.8 billion. Last year also Sumitomo Pharma had an impairment loss of patent rights for KYNMOBI treatment of episodes associated with Parkinson's disease....

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