Sojitz Corporation's first-quarter results for the fiscal year ending March 2027 showed revenue of ¥834.2 billion and net income attributable to owners of the parent of ¥30.2 billion, representing a substantial increase in profit. Full-year net income is forecast at ¥130 billion, with an annual dividend of ¥180.
Sojitz Corporation announced its first-quarter results for the fiscal year ending March 2027, reporting revenue of ¥834.2 billion and net income attributable to owners of the parent of ¥30.2 billion, achieving substantial year-on-year increases in both revenue and profit. Chemicals, energy and integrated infrastructure all performed strongly. Full-year net income is forecast at ¥130 billion, with an annual dividend of ¥180.
Performance has softened somewhat over the past 12 quarters, with a decline in the net profit margin and increased interest-bearing debt cited as factors reducing stability. Attention is therefore warranted on trends in profitability and financial leverage.
Key points to monitor in future results include the expansion of energy-related businesses and profit contributions from chemicals and retail. The new consolidation of Australian infrastructure operations, as well as portfolio optimisation through business substitutions and withdrawals, could affect profitability.
Risk factors cited include lower production efficiency at Australian metallurgical coal operations, market fluctuations in resources and chemicals, changes in fertiliser volumes due to weather conditions, increased funding needs resulting from higher working capital, the effects of increased borrowings and rising interest rates, goodwill and impairment risks, and business constraints associated with the transition to decarbonisation.