Mitsui Chemicals (4183) Q4 2024 earnings summary

Executive summary

• FY2023 sales revenue fell 7% YoY to ¥1,749.7bn; operating income before special items declined 16% to ¥96.2bn, and net income attributable to owners fell 40% to ¥50.0bn.

• FY2024 outlook targets revenue of ¥1,850.0bn, operating income before special items of ¥125.0bn, and net income attributable to owners of ¥73.0bn.

Financial highlights

• FY2023 operating income was ¥74.1bn, down 43% YoY; income before taxes was ¥73.3bn, down 38%.

• Sales revenue decreased ¥129.8bn YoY, with Basic & Green Materials accounting for a ¥167.2bn decline; Growth Domains revenue rose ¥37.7bn to ¥1,053.2bn.

• FY2024 outlook: sales revenue +6% to ¥1,850.0bn; operating income before special items +30% to ¥125.0bn; operating income +52% to ¥113.0bn.

• FY2024 outlook puts income before taxes at ¥107.0bn, up 46%, and net income attributable to owners at ¥73.0bn, up 46%.

Outlook and guidance

• FY2024 operating income before special items is forecast to improve by ¥28.8bn, driven by a ¥41.5bn volume benefit and ¥9.0bn improvement in terms of trade, partly offset by ¥21.7bn higher costs.

• FY2024 operating income before special items is projected at ¥52.0bn in H1 and ¥73.0bn in H2; the H2 increase reflects volume gains in agrochemicals, elastomers, solutions and semiconductor applications, plus Basic & Green Materials pricing.

• FY2024 assumptions include a ¥145/$ exchange rate and domestic naphtha at ¥75,000/KL, versus ¥145/$ and ¥69,100/KL in FY2023.