DIC (4631) Q1 2025 earnings summary

Executive summary

• Net sales for the first quarter of FY2025 rose 2.5% year-over-year to ¥262.1 billion, driven by increased sales of pigments and high-value-added products for electronics equipment, as well as price revisions in the pigments business.

• Operating income surged 54.0% year-over-year to ¥13.1 billion, reflecting improved product mix, cost reductions, and successful price-control efforts.

• Net income attributable to owners of the parent returned to positive territory at ¥6.1 billion, a significant turnaround from a ¥2.8 billion net loss in the prior year, aided by reduced extraordinary losses and lower severance costs.

• EBITDA for the quarter was ¥24.4 billion, up 87.3% year-over-year, reflecting improved profitability and cost reductions, especially in overseas operations.

• Comprehensive income turned negative at ¥(7.4) billion, mainly due to foreign currency translation losses.

Financial highlights

• Gross profit rose to ¥58.3 billion from ¥52.4 billion year-over-year, with gross margin improving.

• Operating margin improved to 5.0% from 3.3% in the previous year.

• Ordinary income increased 48.6% year-over-year to ¥9.9 billion.

• Free cash flow was ¥1.9 billion, with cash and cash equivalents at period end totaling ¥60.6 billion.

• Earnings per share (basic) was ¥64.41, up from ¥(29.35) year-over-year.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales of ¥1,110 billion, operating income of ¥48 billion, and annual dividends of ¥100 per share.

• Approximately ¥10 billion is planned for additional shareholder returns.

• First-half FY2025 guidance projects net sales of ¥550.0 billion and operating income of ¥23.0 billion.

• Management notes risks from global economic conditions, raw material prices, and currency fluctuations.