KH Neochem (4189) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 increased to 28.8 billion yen, up 6.8% year-over-year, with operating income rising 8.5% to 2.7 billion yen.

• EBITDA grew 13% year-over-year to 4.1 billion yen, reflecting improved profitability.

• Net income attributable to owners increased 4.8% to 1.77 billion yen year-over-year.

• Performance Materials segment drove profit growth, offsetting higher depreciation and logistics costs.

• Completion of a CO2-capture system enhanced production stability and supported GHG emission reduction.

Financial highlights

• Net sales: 28.8 billion yen (+7% YoY); Operating income: 2.7 billion yen (+9% YoY); EBITDA: 4.1 billion yen (+13% YoY).

• Ordinary income rose 4.8% year-over-year to 2.6 billion yen.

• Comprehensive income declined 30% to 1.52 billion yen.

• Basic earnings per share for Q1 2025 was 47.98 yen.

• Total assets as of March 31, 2025 were 125.2 billion yen, with net assets at 70.5 billion yen.

Outlook and guidance

• 1Q net sales achieved 23% of the full-year forecast; operating income reached 19% of the annual target.

• Full-year 2025 net sales forecast is 127.4 billion yen (+6.4% YoY); operating income projected at 14.0 billion yen (+14.8% YoY).

• Net income attributable to owners is forecast at 10.0 billion yen (+19.6% YoY).

• Dividend per share forecast for 2025 is 105.00 yen, up from 90.00 yen in 2024.