Kanto Denka Kogyo (4047) Q4 2026 earnings summary

Executive summary

• Net sales rose 4.9% year-over-year to ¥65.4 billion, driven by specialty and Fine Chemicals, despite a fire at the Shibukawa plant.

• Operating profit increased by 28.2% to ¥5.4 billion, and ordinary profit surged 47.1% to ¥6.6 billion year-over-year.

• Net profit attributable to owners grew 16.5% to ¥3.7 billion, aided by higher ordinary profit and absence of prior year environmental costs, despite a disaster loss.

• Comprehensive income soared 165.4% to ¥7,784 million year-over-year.

Financial highlights

• Net sales: ¥65.4 billion (up ¥3.0 billion year-over-year).

• Basic EPS: ¥65.96 (up ¥9.43 year-over-year).

• Equity ratio improved to 55.1% from 53.4% year-over-year.

• Gross profit increased to ¥15,832 million from ¥13,995 million year-over-year.

• Cash and cash equivalents at year-end were ¥19,362 million, down ¥736 million from the previous year.

Outlook and guidance

• FY2027 forecast: net sales ¥95.0 billion (+45.3%), operating profit ¥10.0 billion (+82.5%), ordinary profit ¥10.0 billion (+50.8%), net profit ¥6.8 billion (+79.6%).

• Annual dividend forecast for FY2027 is ¥36 per share, up from ¥20 per share in FY2026.

• Medium-term plan extended by two years, focusing on Fine Chemicals, portfolio reform, and ROIC management.

• FX rate assumption: ¥155/$ for FY2026.