Nippon Chemical Industrial (4092) Q2 2025 earnings summary

Executive summary

• Net sales rose 10.7% year-over-year to ¥20,678 million for the first half, with operating profit up 199.0% to ¥2,401 million and net profit up 167.3% to ¥1,633 million, reflecting a recovery in demand for LCDs, semiconductors, and communication products.

• Profitability improved due to price revisions, strategic business shifts, and reduced inventory write-downs.

• Comprehensive income increased to ¥1,402 million from ¥871 million year-over-year, despite a negative swing in other comprehensive income.

• The outlook remains cautious due to high raw material and fuel prices, currency volatility, and global uncertainties.

Financial highlights

• Net sales: ¥20,678 million, up 10.7% year-over-year.

• Operating profit: ¥2,401 million, up 199.0% year-over-year; operating margin increased from 4.3% to 11.6%.

• Ordinary profit: ¥2,393 million, up 163.2% year-over-year.

• Net profit: ¥1,633 million, up 167.3% year-over-year.

• EBITDA: ¥4,192 million, up 60.0% year-over-year.

• EPS: ¥185.09, up from ¥69.33 year-over-year.

• Gross profit increased to ¥5,039 million from ¥3,282 million year-over-year.

• Total assets slightly decreased to ¥75,667 million as of September 30, 2024.

• Net assets increased to ¥46,181 million, with an equity ratio of 61.0%.

Outlook and guidance

• Full-year net sales forecast at ¥40,000 million, up 3.8% year-over-year.

• Full-year operating profit forecast revised upward by ¥700 million to ¥3,600 million, a 24.1% increase over the previous forecast.

• Ordinary profit and operating profit both projected at ¥3,600 million (up 59.0%).

• Net profit forecast raised by ¥600 million to ¥2,600 million, a 30.0% increase.

• Full-year earnings per share forecast at ¥294.72.

• Annual dividend forecast increased from ¥70 to ¥92 per share.

• Capital expenditures revised down to ¥6,900 million due to delayed facility deliveries.

• Cautious outlook maintained due to external uncertainties.