Pacific Metals (5541) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended September 30, 2024, were ¥7,835 million, down 3.1% year-over-year, reflecting challenging market conditions and lower selling prices for ferronickel products.

• Operating loss narrowed to ¥4,468 million from ¥6,194 million year-over-year, aided by a ¥1.5 billion reversal of inventory write-downs.

• Ordinary loss was ¥2,316 million, with a notable ¥2,244 million in share of profit from equity-method affiliates.

• Loss attributable to owners of parent improved to ¥1,877 million from ¥2,611 million year-over-year.

• The company is pursuing new business initiatives in battery materials and beryllium, focusing on cost minimization and operational efficiency.

Financial highlights

• Six-month sales volume increased 7.6% year-over-year to 3,284 Ni tons, but production volume fell 37.4% to 2,010 Ni tons.

• Basic earnings per share: ¥(96.26) vs. ¥(133.90) year-over-year.

• Inventory valuation contributed positively to profit and loss due to decreased inventory.

• Net sales: ¥7,835 million (down 3.1% year-over-year).

• Loss attributable to owners of parent: ¥1,877 million (improved from ¥2,611 million loss year-over-year).

Outlook and guidance

• Full-year net sales forecast revised to ¥14,096 million, down 9.2% year-over-year, with operating loss forecast at ¥7,858 million and ordinary loss at ¥3,619 million.

• Loss attributable to owners of parent forecast at ¥3,394 million; basic EPS forecast at ¥(174.04).

• No significant changes in the business environment are expected; strategic volume reduction will be maintained.

• High raw material and energy costs are expected to persist, significantly impacting profit.

• Market and procurement conditions remain highly uncertain due to global economic and geopolitical factors.