Adeka (4401) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 rose 3.8% year-over-year to ¥98.1 billion, with operating profit up 17.1% to ¥8.6 billion and profit attributable to owners of parent up 33.2% to ¥6.8 billion.

• Growth was driven by strong performance in Chemicals, especially polymer additives and functional chemicals, and a significant rebound in Food Products operating profit.

• Life Science segment saw a notable decline in sales and posted an operating loss due to weak agrochemical demand and higher fixed costs.

Financial highlights

• Ordinary profit increased 19.4% year-over-year to ¥9.7 billion.

• Net profit per share for Q1 was ¥66.8, up ¥16.8 year-over-year.

• Progress toward full-year targets: 23% of net sales and 22% of operating profit achieved in Q1.

• Comprehensive income was ¥12,626 million, down from ¥13,371 million in the prior year.

Outlook and guidance

• Full-year forecast revised upward: net sales ¥426 billion, operating profit ¥39.2 billion, profit attributable to owners of parent ¥24.2 billion, and net profit per share ¥237.0.

• Interim and year-end dividends forecast at ¥45.00 per share each, totaling ¥90.00 for the year.

• Life Science segment expects to recover from 2Q onward, with global agrochemical demand projected to grow.

• Exchange rate assumptions: ¥/$140, ¥/€152; sensitivity: ¥0.1 billion impact on operating profit per ¥1 change against USD.

• Mid-term plan targets for FY2026: ¥39.2 billion operating profit, ¥426 billion net sales, ROE 8.5%, 40% dividend payout ratio.