Sumitomo Corporation Reports Record Profits And Dividend Increase

Sumitomo Corporation, one of Japan's largest trading companies, has announced a significant increase in its consolidated net profit for the fiscal year ending March 2025, marking a record high for the third consecutive year. The company reported a remarkable 45.4% increase in profit, reaching 561.8 billion yen (approximately $4.2 billion), compared to the previous year. This announcement was made on May 1, 2025, after the market closed.

Looking ahead, Sumitomo Corporation projects a further 1.4% increase in net profit for the fiscal year ending March 2026, forecasting a total of 570 billion yen. This anticipated profit exceeds the average analyst estimate of 547.8 billion yen, which was compiled by IBES from 11 analysts. The company attributes this optimistic outlook to growth in its non-resource business sectors, which include leasing, real estate, digital services, healthcare, and agriculture.

In addition to the impressive profit forecasts, Sumitomo Corporation also announced a plan to increase its annual dividend by 10 yen, raising it to 140 yen per share. This increase reflects the company's confidence in its financial stability and growth prospects. The dividend hike is particularly noteworthy as it comes after a strong performance in the January-March quarter (4Q), where the consolidated final profit surged to 145.3 billion yen, a significant recovery from a loss of 17.7 billion yen in the same period the previous year.

Despite the positive financial outlook, Sumitomo Corporation has acknowledged potential risks that could impact its profitability. The company has factored in the effects of U.S. tariff policies, which it estimates could reduce profits by approximately 40 billion yen. These tariffs are part of a broader landscape of economic challenges that businesses face in today's global market.

To further enhance shareholder value, Sumitomo Corporation also announced a share buyback program. The company plans to repurchase up to 3.5 million shares, which represents about 2.95% of its outstanding shares, with a total expenditure limit of 80 billion yen. This program will be effective from May 2, 2025, until March 31, 2026, and demonstrates the company's commitment to returning capital to its shareholders while maintaining a strong balance sheet.

Sumitomo Corporation's strong performance and forward-looking strategies come at a time when many companies are grappling with economic uncertainties. The trading giant's ability to navigate these challenges while achieving record profits sets a positive example in the business community.

As the company continues to expand its operations across various sectors, stakeholders will be keenly watching how it manages the anticipated risks and capitalizes on growth opportunities. The commitment to increasing dividends and engaging in share buybacks indicates a robust approach to enhancing shareholder value while pursuing sustainable growth.

In summary, Sumitomo Corporation's financial results reflect a strong recovery and an optimistic outlook for the future. With a solid foundation in non-resource sectors and proactive strategies to mitigate risks, the company is well-positioned to continue its upward trajectory in the coming years.