Daiichi Kigenso Kagaku Kogyo (4082) Q1 2026 earnings summary

Executive summary

• Renovation of Vietnam business completed, improving production efficiency and cost competitiveness; production progressing as planned.

• Net sales for the three months ended June 30, 2025, were ¥8,100 million, a 3.9% decrease year-over-year.

• Operating profit declined 30.7% year-over-year to ¥525 million.

• Ordinary profit dropped sharply by 98.1% to ¥15 million compared to the same quarter last year.

• Dividend policy revised to include a 1.8% DOE alongside a 30% payout ratio for more stable returns.

Financial highlights

• Net sales ¥8,100mn, down 3.9% YoY; operating profit ¥525mn, down 30.7% YoY.

• Net loss recorded due to ¥449mn net exchange loss from loans to Vietnamese subsidiary.

• Gross profit rose 10.3% YoY to ¥2,385mn; operating profit margin fell to 6.4% from 9.0%.

• Ordinary profit dropped to ¥15mn from ¥817mn YoY.

• Comprehensive income for the quarter was negative ¥37 million, compared to ¥557 million in the prior year.

Outlook and guidance

• Demand for products expected to rise due to geopolitical risks and Vietnam business progress.

• Medium- to long-term growth anticipated in NCM battery vehicle segment, supporting zirconium demand.

• Full-year net sales forecast for fiscal year ending March 31, 2026, is ¥34,000 million, up 1.1% year-over-year.

• Operating profit is projected at ¥1,000 million, a 56.2% decrease year-over-year.

• Profit attributable to owners of parent is expected to be ¥150 million, an 81.1% decrease year-over-year.