Adeka (4401) Q4 2024 earnings summary

Executive summary

• FY2023 net sales dipped slightly YoY, while operating and current profit reached record highs; profit attributable to owners of parent also rose.

• ADX 2026 sets FY2026 targets of JPY 500 billion net sales and JPY 53 billion operating profit, with growth investment focused on electronics and IT materials.

Financial highlights

• FY2023 net sales JPY 399.7 billion, down JPY 3.5 billion YoY; operating profit JPY 35.4 billion, up JPY 3 billion; current profit JPY 35.7 billion, up JPY 3.1 billion.

• Profit attributable to owners of parent JPY 22.9 billion, up JPY 6.1 billion YoY; EPS JPY 224.9, up JPY 61.6.

• Operating profit benefited from JPY 7.2 billion in net pricing and JPY 2.7 billion from FX; fixed and manufacturing costs reduced profit by JPY 4.2 billion, and lower volume by JPY 2.6 billion.

Outlook and guidance

• FY2024 forecast: net sales JPY 425 billion, up JPY 25.2 billion YoY; operating profit JPY 37.3 billion, up JPY 1.8 billion; current profit JPY 36.4 billion, up JPY 0.6 billion.

• FY2024 profit attributable to owners of parent forecast at JPY 23 billion, virtually unchanged YoY; EPS JPY 225.2 and dividend JPY 90 per share.

• ADX 2026 FY2026 targets: net sales JPY 500 billion, operating profit JPY 53 billion, ROE 11%, ROIC 10.5%, and CapEx JPY 75 billion.

• FY2024–FY2026 plan targets dividend payout ratio of at least 40%; segment sales and operating profit are expected to grow broadly, with food products the exception.