Daicel (4202) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025/3 reached ¥145.6 billion, up 11.3% year-over-year, driven by recovery in electronic materials and engineering plastics demand, cost reductions, and favorable exchange rates.

• Operating income surged 91.5% year-over-year to ¥17.5 billion, with net income attributable to owners up 8.0% to ¥16.2 billion.

• Both net sales and operating income exceeded forecasts due to stronger-than-expected demand recovery and yen depreciation, despite negative impacts from a certification misconduct issue at a Japanese automobile manufacturer.

• Comprehensive income reached ¥33,957 million, up 9.8% year-over-year.

Financial highlights

• EBITDA rose to ¥27.0 billion, up 62.7% year-over-year.

• Ordinary income increased 43.2% year-over-year to ¥18.2 billion.

• EPS for Q1 FY2025 was ¥58.70, up from ¥52.46 in Q1 FY2024.

• Total assets as of June 30, 2024, were ¥869.5 billion, up ¥30.3 billion from March 31, 2024.

• Net assets increased to ¥402.4 billion, with a capital adequacy ratio of 44.3%.

Outlook and guidance

• FY2025/3 full-year net sales forecast is ¥610.0 billion, up ¥51.9 billion from the previous year.

• Operating income forecast is ¥65.0 billion, ordinary profit at ¥67.0 billion, and net income at ¥58.0 billion.

• Annual dividend forecast is ¥55 per share, up ¥5 from the previous year, with a DOE target of 4.0%.

• No revision to forecasts since May 9, 2024.