SRI profit down in H1 2023

Sumitomo Rubber Industries, Ltd achieved lower profit in H1 2023 despite increasing sales and operating profit. The company has nonetheless upwardly revised its full-year profit forecast from 21,000 million yen to 23,000 million yen (£127.1 million, US$162.2 million).

Overall group sales amounted to ¥561,161 million (£3.1 billion, $4.0 billion), representing year-on-year growth of 9.6 per cent. Business profit increased 20.4 per cent to ¥17,080 million (£94.4 million, $120.4 million), operating profit increased 33.7 per cent to ¥16,810 million (£92.9 million, $118.5 million) and profit attributable to owners of parent decreased 52.3 per cent to ¥8,196 million (£45.3 million, $57.8 million).

Sales volumes for replacement tyres were depressed in several regions during the six months to 30 June 2023. Volumes were down in Europe due to inflation-related purchase hesitancy and sluggish winter tyre demand, while in North America the discontinuation of low-profit products kept volume behind last year’s level. A sluggish market was responsible for a year-on-year decrease in volume in Southeast Asia.

But Sumitomo Rubber Industries’ Tire Business achieved a 9.3 per cent year-on-year increase in sales revenue, this amounting to ¥471,076 million (£2.6 billion, $3.3 billion). Business profit increased 27.4 per cent, to ¥9,759 million (£53.9 million, $68.7 million).