Fuso Chemical (4368) Q2 2025 earnings summary

Executive summary

• Net sales for 1H FY03/2025 rose 28.1% year-over-year to ¥34.75 billion, with operating profit up 45.9% to ¥8.14 billion and profit attributable to owners up 30.8% to ¥5.6 billion.

• EBITDA reached a record high for the half-year at ¥11.84 billion, up 41.6% year-over-year.

• Comprehensive income decreased 8.8% year-over-year to ¥4.99 billion due to negative foreign currency translation adjustments.

• Growth was driven by strong performance in Electronic Materials & Functional Chemicals, especially from semiconductor-related demand.

Financial highlights

• Net sales exceeded both the previous year and budget, with a 28.1% year-over-year increase and a 2.2% rise over the latest budget.

• Operating profit margin improved significantly, and EPS increased 30.8% year-over-year to ¥159.09.

• Overseas sales accounted for over 50% of total sales, with notable growth in Asia and North America.

• Gross profit for the period was ¥12.92 billion, up from ¥10.32 billion year-over-year.

• Total assets as of September 30, 2024, were ¥134.89 billion, with net assets at ¥98.87 billion and an equity ratio of 73.3%.

Outlook and guidance

• Full-year FY03/2025 net sales forecast is ¥68.0 billion (+15.3% year-over-year), with operating profit projected at ¥13.5 billion (+21.8%).

• Profit attributable to owners is forecast at ¥9.15 billion (+9.7%), and EBITDA at ¥21.85 billion (+19.8%).

• Full-year earnings per share forecast is ¥259.57.

• Assumes gradual semiconductor market recovery and stable exchange rates (USD/JPY 145).

• No revisions to previously announced forecasts.