Daiichi Kigenso Kagaku Kogyo (4082) Q3 2025 earnings summary

Executive summary

• R&D activities intensified with the new center, and several technical news releases were issued since September 2023.

• Revenue for the nine months ended December 31, 2024, was ¥25,071 million, down 6.2% year-over-year, with sales volume decreasing 3.7% compared to the same period last year.

• Operating profit was ¥2,328 million, nearly flat year-over-year, exceeding the full-year forecast progress rate at 105.8%.

• Net income attributable to shareholders rose 19.0% year-over-year to ¥1,414 million, aided by special gains from subsidies and despite impairment losses.

• The Vietnam plant faced equipment delays, pushing full-scale operations to June 2025.

Financial highlights

• Net sales for 1Q–3Q FY3/2025 were ¥25,071 million, down 6.2% year-over-year.

• Gross profit rose 2.1% year-over-year to ¥6,785 million, with a margin of 27.1%.

• Operating profit was ¥2,328 million, nearly flat year-over-year, with a margin of 9.3%.

• Ordinary profit dropped 23.8% year-over-year to ¥1,992 million, mainly due to reduced foreign exchange gains.

• EPS for the period was ¥58.25, up from ¥48.86 in the prior year.

Outlook and guidance

• Full-year revenue is forecast at ¥34,000 million (up 3.5% year-over-year), with operating profit of ¥2,200 million (down 9.2%), and net income of ¥1,100 million (up 3.6%).

• No change to previously announced guidance, but Q4 operating profit is expected to decline due to production adjustments amid softening demand.

• Full-scale Vietnam plant operations now expected in June 2025, with cost impacts under review.

• Foreign exchange volatility remains a key uncertainty for profit forecasts.