Artience (4634) Q3 2025 earnings summary

Executive summary

• Net sales for the first three quarters of FY2025 were ¥258.4 billion, down 0.7% year-on-year, with operating profit at ¥14.9 billion, down 5.8%, and profit attributable to owners of parent at ¥9.7 billion, down 23.4%.

• Q3 saw year-on-year growth in sales and profit, driven by Polymers and Coatings and Packaging Materials.

• Overseas performance was strong in optical pressure sensitive adhesives and functional films, especially in China, while UV curable inks and colorants underperformed due to high raw material costs and competition.

• The global economic recovery was modest, with demand volatility due to tariff-related rush demand and subsequent declines, impacting results.

• Comprehensive income dropped sharply to ¥4,544 million, down 74.2% year-on-year.

Financial highlights

• Net sales for the first three quarters: ¥258.4 billion, down 0.7% year-on-year.

• Operating profit: ¥14.9 billion, down 5.8% year-on-year.

• Profit attributable to owners of parent: ¥9.7 billion, down 23.4% year-on-year.

• Operating margin decreased to 5.8% from 6.1% year-on-year.

• EPS (basic) for the period was ¥194.92, compared to ¥238.27 in the prior year.

Outlook and guidance

• Full-year FY2025 guidance remains unchanged: net sales of ¥355.0 billion (+1.1% YoY), operating profit of ¥19.0 billion (-6.9% YoY), ordinary profit of ¥18.0 billion (-14.3% YoY), and profit attributable to owners of parent of ¥15.5 billion (-16.4% YoY).

• Dividend forecast is ¥100 per share for the full year.

• Strong performance expected to continue in optical pressure sensitive adhesives, functional films, and can coatings.

• Full-scale shipments of CNT dispersions for LiBs to a major Chinese customer expected to begin in December.

• Raw material prices for naphtha expected to stabilize, but UV curable ink and silver prices to remain high.