KH Neochem (4189) Q2 2025 earnings summary

Executive summary

• Net sales for the six months ended June 30, 2025, increased by 5.1% year-over-year to ¥58,754 million, with operating income rising 24.7% to ¥6,005 million and net income attributable to owners of parent growing 18.9% to ¥3,934 million.

• Performance Materials segment was the main driver of profit growth, achieving planned targets.

• Interim dividend increased to 52.5 yen per share, and share buybacks are proceeding as planned.

• Comprehensive income for the period was ¥4,131 million, up 7.6% year-over-year.

Financial highlights

• Net sales: 58.8 billion yen (+5% YoY); Operating income: 6.0 billion yen (+25% YoY); EBITDA: 9.0 billion yen (+26% YoY).

• Profit attributable to owners: 3.9 billion yen (+19% YoY).

• Ordinary income for the six months reached ¥5,760 million, a 23.1% increase year-over-year.

• Basic earnings per share for the period was ¥108.09, compared to ¥89.37 in the prior year.

• Operating income margin improved to 10.2%.

Outlook and guidance

• Full-year 2025 net sales are forecast at ¥127,400 million, up 6.4% from the previous year.

• Operating income is projected to reach ¥14,000 million, a 14.8% increase year-over-year.

• Net income attributable to owners of parent is expected to be ¥10,000 million, up 19.6% year-over-year.

• Annual dividend per share is forecast at ¥105.00, up from ¥90.00 in the previous year.

• Interim dividend set at 52.5 yen per share, with a policy to increase payout ratio from 30% to 40% and target DOE over 4%.