Adeka (4401) Q1 2026 earnings summary

Executive summary

• Q1 FY2025 net sales rose 3.5% year-over-year to JPY 101.6 billion, with operating profit up 26.6% to JPY 10.99 billion and profit attributable to owners of parent up 6.2% to JPY 7.25 billion.

• Net profit per share increased to JPY 71.22, up JPY 4.4 year-over-year.

• Growth was driven by strong Life Science segment performance, offsetting declines in Chemicals and Food Products.

• Comprehensive income declined 19.0% year-over-year to JPY 10.23 billion.

• The global economy showed solid growth, but uncertainties remain due to U.S. tariff policy.

Financial highlights

• Operating profit increased by JPY 2.3 billion year-over-year, mainly due to higher sales volume and improved net pricing, despite negative impacts from exchange rates and fixed costs.

• Ordinary profit rose 13.7% year-over-year to JPY 11.06 billion.

• Gross profit increased to JPY 28.95 billion from JPY 26.38 billion year-over-year.

• Overseas sales ratio stood at 54.6% at Q1 end.

• Q1 progress rate: 23% for net sales, 25% for operating profit toward full-year targets.

Outlook and guidance

• FY2025 forecasts unchanged: JPY 441 billion net sales (+8.3% YoY), JPY 43 billion operating profit (+4.9% YoY), JPY 26.4 billion profit attributable to owners, JPY 259.5 net profit per share.

• Dividend forecast raised to JPY 104 per share for the fiscal year ending March 31, 2026.

• Segment forecasts adjusted: downward for Polymer Additives and Semiconductor Materials, upward for Life Science due to strong agrochemical sales.

• Expecting significant recovery in H2 for semiconductor materials, but not enough to offset H1 decline.

• FX sensitivity: a JPY 1 appreciation against the USD impacts operating profit by JPY 0.09 billion.