Sumitomo Chemical's quarterly results did not just improve, they reversed. The company reported net profit attributable to owners of ¥40.8bn for the three months to June 2026, against a loss of ¥4.5bn in the same quarter a year earlier. Revenue rose 9.9% to ¥578.2bn and core operating profit more than doubled to ¥62.3bn.
Most of that swing traces back to one line item: the company's Essential & Green Materials segment, home to its equity-method stake in Rabigh Refining and Petrochemical Company in Saudi Arabia. Improved trading conditions at Rabigh, plus inventory valuation gains on synthetic resins as market prices rose, pushed the segment's core operating profit to ¥27.2bn, a ¥32.7bn improvement on a ¥5.5bn loss a year earlier. That single segment accounts for most of the group's total profit gain.
Agro & Life Solutions added a smaller but steady contribution: domestic crop-protection sales held firm, a weaker yen lifted export proceeds, and trade terms improved for methionine, a feed additive. Segment revenue rose ¥12.1bn to ¥109.0bn and core operating profit climbed ¥7.4bn to ¥9.6bn.
| Segment | Revenue | Core Operating Profit/Loss |
|---|---|---|
| Agro & Life Solutions | ¥109.0bn (+¥12.1bn) | ¥9.6bn (+¥7.4bn) |
| ICT & Mobility Solutions | ¥148.6bn (+¥11.2bn) | ¥13.0bn (-¥5.3bn) |
| Advanced Medical Solutions | ¥10.4bn (+¥1.4bn) | -¥1.9bn (-¥0.9bn) |
| Essential & Green Materials | ¥170.2bn (+¥4.8bn) | ¥27.2bn (+¥32.7bn) |
| Sumitomo Pharma | ¥129.0bn (+¥21.6bn) | ¥18.8bn (-¥2.2bn) |
| Other | ¥11.0bn (+¥1.0bn) | ¥3.1bn (+¥1.3bn) |
| Group Total | ¥578.2bn (+9.9%) | ¥62.3bn (+125.2%) |
Sumitomo Pharma, a consolidated subsidiary, posted a ¥21.6bn revenue increase to ¥129.0bn on higher US sales of the prostate-cancer drug Orgovyx and the overactive-bladder treatment Gemtesa, which outweighed the revenue lost from last year's partial sale of its Asia business. Its core operating profit fell ¥2.2bn to ¥18.8bn, as research spending rose on accelerated oncology clinical trials and broader promotion of its psychiatric and neurological drug area. During the quarter, Sumitomo Pharma also carried out a public share offering; the resulting increase in non-controlling interests and capital surplus added ¥175.8bn to group equity, lifting the parent's equity ratio to 30.5% from 29.6%.
Display materials were the one clear laggard, still working through the fallout of last year's restructuring of the large-panel LCD polarizing-film business, while semiconductor process materials saw stronger demand for high-purity chemicals and photoresist without much profit benefit once fixed costs are counted.
What management did not change matters as much as what improved. The full-year forecast for the year ending March 2027 stays at revenue of ¥2.36tn, core operating profit of ¥215bn and net profit of ¥70bn, all unrevised from May. The company said the full-year number is still under review and will be addressed again at the half-year results. It did publish, for the first time, an interim forecast for the six months to September: net profit of ¥70bn, matching the full-year target already on the books, alongside an annual dividend forecast held at ¥16.00 a share, up from ¥13.50 paid for the year to March 2026.