Kureha Corporation (4023) Q1 2025 earnings summary

Executive summary

• Revenue and profit declined year-over-year in FY2024 Q1, mainly due to lower PVDF sales volume and price, as well as reduced sales in advanced materials, agrochemicals, industrial chemicals, and home products.

• Operating profit fell 35.2% year-over-year to ¥3,200 million, impacted by lower PVDF and home product sales.

• Net profit attributable to owners declined 10.3% to ¥2,918 million.

• The company continues to focus on medium- to long-term value creation and sustainability, guided by its management policy and mid- to long-term plan.

• Tax expenses were minimal due to the absence of one-time taxable depreciation expenses recorded in the prior year.

Financial highlights

• Revenue decreased by 4.2% year-over-year to ¥41.9 billion.

• Core operating profit dropped 26.6% to ¥3.5 billion; operating profit fell 35.2% to ¥3.2 billion.

• Profit attributable to owners declined 11.3% to ¥2.9 billion; basic EPS was ¥52.74.

• Free cash flow improved to ¥7.0 billion from -¥7.0 billion in the prior year; net cash provided by operating activities was ¥11,088 million, up from a cash outflow of ¥3,064 million.

• Total assets as of June 30, 2024, were ¥331,036 million, up ¥406 million from March 31, 2024.

Outlook and guidance

• No changes to 1H and full-year forecasts; full-year revenue expected at ¥170.0 billion and operating profit at ¥14.0 billion.

• Basic profit per share for the full year is forecast at ¥191.45.

• Medium- to long-term outlook for PVDF remains positive, with sustained growth in LiB demand for EVs anticipated.

• PGA business expects gas prices to recover in 2H FY2024, supporting market recovery.