Daicel (4202) Q1 2027 earnings summary

Executive summary

• Net sales rose 9.4% year-over-year to ¥152.4 billion, with operating profit up 7.7% to ¥14.0 billion and ordinary profit up 18.1% to ¥14.6 billion.

• Profit attributable to owners of parent declined 2.7% year-over-year to ¥9.4 billion, mainly due to the absence of prior-year subsidy income.

• Comprehensive income surged 85.3% year-over-year to ¥20.6 billion, reflecting strong other comprehensive income.

• Results exceeded initial forecasts, driven by price revisions, inventory effects, and strong demand in High Performance Polymers.

Financial highlights

• Net sales: ¥152.4 billion (+9.4% YoY), operating profit: ¥14.0 billion (+7.7% YoY), ordinary profit: ¥14.6 billion (+18.1% YoY), EBITDA: ¥24.8 billion (+8.4% YoY).

• Gross profit increased to ¥41.8 billion from ¥40.0 billion year-over-year.

• Net assets rose to ¥383.3 billion as of June 30, 2026, up from ¥370.4 billion at March 31, 2026.

• Shareholders’ equity ratio was 42.5% as of June 30, 2026.

• Exchange rate averaged 159 JPY/USD, up from 145 JPY/USD in the prior year.

Outlook and guidance

• 1Q results surpassed forecasts, with net sales 10% and operating profit 116% above plan.

• Full-year FY2027 revenue forecast is ¥595.0 billion (+2.7% YoY); operating profit forecast is ¥42.5 billion (+1.0%).

• Profit attributable to owners of parent is projected at ¥32.0 billion (+214.3% YoY), with EPS forecast at ¥125.30.

• Interim and year-end dividends are forecast at ¥35.00 per share, totaling ¥70.00 for the year.

• Full-year forecasts do not reflect the impact of Middle East disruptions.