Kunimine Industries (5388) Q4 2025 earnings summary

Executive summary

• Revenue for the year ended March 2025 was ¥15,707 million, a 0.2% increase year-over-year, with operating profit up 4.0% to ¥1,280 million and net profit up 3.3% to ¥1,078 million, driven by cost controls and higher value-added products.

• Sales volume declined, but price revisions and focus on high value-added products supported slight revenue and profit growth.

• Ordinary profit decreased 3.7% due to a reversal from previous year’s foreign exchange gains to losses.

• The business environment saw ongoing labor shortages and rising logistics costs, but domestic economic recovery was supported by wage hikes and capital investment.

• Segment reorganization was implemented, now reporting Bentonite, Clay Science, and Agri as separate segments.

Financial highlights

• Operating profit margin improved to 8.2% (from 7.9% last year), with operating profit up ¥49 million year-over-year, mainly due to price revisions and product mix improvements.

• Comprehensive income rose 8.3% year-over-year to ¥1,311 million.

• Cash and equivalents at year-end were ¥7,881 million, with free cash flow of ¥254 million.

• Total assets rose to ¥25,839 million, and equity ratio remained high at 83.4%.

• Dividend per share maintained at ¥40, with a payout ratio of 45.4%.

Outlook and guidance

• For the year ending March 2026, revenue is forecast to rise 7.7% to ¥16,921 million, with operating profit up 26.2% to ¥1,616 million and net profit up 18.2% to ¥1,274 million.

• Growth is expected from continued focus on high value-added products, dynamic pricing strategies, overseas expansion, and digital transformation.

• Management expects continued cost pressures from labor and logistics.

• Dividend policy maintains a minimum annual payout of ¥40 per share, with interim and year-end dividends planned.