Daiichi Kigenso Kagaku Kogyo (4082) Q4 2025 earnings summary

Executive summary

• Net sales decreased 4.5% year-over-year to ¥33,641 million, mainly due to production adjustments in the automobile industry and increased competition from Chinese manufacturers.

• Operating profit declined 5.8% year-over-year to ¥2,282 million, impacted by one-off cost increases from the Vietnam plant launch.

• Profit attributable to owners of parent fell 55.1% year-over-year to ¥632 million, partially offset by government subsidies.

• Ordinary profit dropped 78.5% year-over-year, primarily due to foreign exchange losses on foreign currency-denominated assets.

• Comprehensive income rose to ¥2,938 million, a 235.7% increase year-over-year.

Financial highlights

• Gross profit was ¥8,352 million (24.8% of sales), up 0.5% year-over-year.

• Operating profit before depreciation rose 5.9% year-over-year to ¥5,855 million.

• Cash flows from operating activities decreased by ¥1,811 million year-over-year, while free cash flow increased by ¥1,084 million to ¥2,947 million.

• Cash and cash equivalents at period end were ¥8,920 million, up from ¥8,289 million.

• Basic earnings per share declined to ¥32.64 from ¥46.87 the previous year.

Outlook and guidance

• FY2026 net sales are forecast to rise 1.1% year-over-year to ¥34,000 million, driven by growth in strategic areas.

• Operating profit is projected to decline 56.2% year-over-year to ¥1,000 million due to increased costs for human capital and stable operation of the Vietnam business.

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

• Basic earnings per share forecasted at ¥6.19 for the next fiscal year.

• Strategic areas such as semiconductors and healthcare are expected to see sales growth, while automotive catalyst sales are forecast to decline.