Asahi Kasei (3407) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 saw year-on-year operating income growth in all segments, led by a strong recovery in Material from electronics and semiconductor markets and improved petrochemical prices; Homes and Health Care also performed well.

• Net sales rose 13.1% year-over-year to ¥735.9 billion in Q1 2024, with operating income up 128.9% to ¥49.9 billion and net income attributable to owners up 255.5% to ¥34.1 billion.

• Comprehensive income reached ¥122.8 billion, up from ¥116.8 billion in Q1 2023.

• Upward revision of H1 2024 forecast, especially for Material and Health Care, with full-year guidance to be reviewed at Q2.

• Decision to make a tender offer for Calliditas Therapeutics AB and continued recognition for digital transformation initiatives.

Financial highlights

• Q1 2024 net sales rose 13.1% year-over-year to ¥735.9 billion; operating income up 128.9% to ¥49.9 billion.

• Net income attributable to owners of the parent increased 255.5% year-over-year to ¥34.1 billion.

• EBITDA grew 43.8% year-over-year to ¥94.1 billion; EBITDA margin improved to 12.8%.

• Gross profit margin increased to 31.5% from 28.7% year-over-year.

• EPS rose to ¥24.59 from ¥6.92 year-over-year.

Outlook and guidance

• H1 2024 net sales forecast at ¥1,501.0 billion (+11.5% YoY); operating income forecast at ¥95.0 billion (+70.0% YoY).

• Fiscal 2024 net sales forecast at ¥2,912.0 billion (+4.6% YoY), operating income at ¥180.0 billion (+27.9%), and net income attributable to owners at ¥100.0 billion (+128.3%).

• Net income per share forecast for the year is ¥72.14.

• Interim and annual dividend forecast maintained at ¥18.00 and ¥36.00 per share, respectively.

• Ongoing efforts to enhance earnings structure through pricing based on feedstock costs and cost reductions.