Sumitomo Riko revises up financial targets on automotive recovery

Tokyo – Sumitomo Riko has revised up its financial targets for fiscal year 2025, ending 31 March 2026, having exceeded its targets for 2023.

The group now expects to record business profit of Yen32 billion (€188 million) by 2025, up 14% compared to an earlier estimate of Yen28 billion announced May last year.

While sales forecast remains at Yen620 billion, return on invested capital is set to come in at 10%, compared to the previous estimate of 8%, the group announced 28 May.

The improved outlook was linked to productivity improvements, due to a recovery in automotive production after the Covid pandemic.

Furthermore, the group said its progress in structural reforms, cost reduction activities, and other measures helped the faster pace of growth.

The 2025 targets are mid-term goals set by Sumitomo Riko last year as part of its 2029 vision which aims to increase sales to Yen700 billion and ROIC of 10%. (ERJ report)

The Tokyo-based group reported a strong increase in profits in the year ended 31 March, more than doubling business profit to Yen37 billion, on 14% year-on-year higher sales of Yen615 billion.

Automotive products contributed to the profit growth, with a 196% increase year-over-year to Yen34.4 billion.

General Industries Products, on the other hand, reported a 14% decline in profits to Yen2.6 billion.