Adeka (4401) Q2 2025 earnings summary

Executive summary

• Six-month net sales rose 4.0% year-over-year to ¥195,075 million; operating profit increased 23.6% to ¥18,296 million, and profit attributable to owners of parent rose 8.9% to ¥11,485 million.

• Chemicals growth, led by polymer additives, electronic materials and environmental materials, offset declines in Food Products and Life Science.

• FY2024 full-year guidance and dividend forecast were raised.

Financial highlights

• Ordinary profit rose 8.6% to ¥16,866 million; basic earnings per share increased to ¥112.55 from ¥103.20.

• Operating profit rose ¥3.4 billion, supported by higher sales volume, favorable exchange rates and improved net pricing, offsetting a ¥3.3 billion fixed-cost headwind.

• Gross profit increased to ¥53,934 million from ¥47,289 million year-over-year.

• Operating cash flow rose to ¥33,000 million from ¥26,664 million; cash and deposits were ¥103.9 billion at September 30, 2024.

• Comprehensive income fell to ¥8,956 million from ¥20,882 million, reflecting negative foreign currency translation adjustments.

Outlook and guidance

• FY2024 guidance: net sales ¥426,000 million, operating profit ¥41,100 million and profit attributable to owners of parent ¥24,500 million.

• Operating, ordinary and parent-attributable profit forecasts were raised versus August; net sales and operating profit guidance were also increased.

• FY2024 net profit per share is forecast at ¥240.9; the annual dividend forecast was raised to ¥97 per share.

• Moderate, stable global growth is expected; Chemicals and Life Science are expected to drive H2 growth, while Food Products faces continued challenges.

• FY2026 ADX 2026 targets are net sales of ¥500 billion and operating profit of ¥53 billion.