DIC (4631) Q2 2025 earnings summary

Executive summary

• H1 FY2025 net sales fell 2.9% YoY to ¥523.2B, mainly due to slower shipments of pigments and inks amid tariff-related uncertainty.

• Operating income rose 22.9% to ¥27.0B on price revisions, cost reductions and improved overseas pigment profitability.

• Net income attributable to owners of the parent increased 104% to ¥13.1B, reflecting lower extraordinary losses.

• EBITDA rose 12.0% to ¥49.1B.

Financial highlights

• H1 ordinary income rose 1.3% YoY to ¥20.3B.

• Selling-price effects added ¥8.9B to operating income; lower sales volume and mix reduced it by ¥2.5B.

• Operating margin improved to 5.2% from 4.1% YoY; gross profit rose to ¥116.8B from ¥113.1B.

• FX gains swung from ¥0.3B to a ¥4.8B loss, a ¥5.1B adverse YoY change.

• Operating cash flow was ¥21.5B, up from ¥14.5B; free cash flow was ¥6.0B.

Outlook and guidance

• FY2025 net sales forecast was reduced to ¥1,060.0B; operating income guidance rose to ¥50.0B, while net income remains ¥24.0B.

• Ordinary income guidance was revised lower due to higher forex losses; shipment volumes are expected to soften slightly, while high-value-added and functional products are expected to grow.

• FY2025 annual dividend is ¥200 per share: ¥50 interim and ¥150 year-end, including an additional ¥100 per share; FY2026 minimum annual dividend rises to ¥120.

• FY2025 net income guidance excludes potential artwork-sale gains; net extraordinary gains and losses are projected at ¥1B.