Nippon Shokubai (4114) Q3 2025 earnings summary

Executive summary

• Revenue for the nine months ended December 31, 2024, increased to ¥308.6 billion, up 5.6% year-over-year, with operating profit rising to ¥15.2 billion, up 5.3% YoY, and profit before tax rising 35.1% to ¥19.2 billion.

• Profit attributable to owners of parent increased 43.0% YoY to ¥14.0 billion, with basic earnings per share rising to ¥91.62 after a 4-for-1 stock split.

• Growth was driven by higher volumes and prices in specialty chemicals, electronics materials, acrylic acid, and acrylate, despite increased SG&A expenses from higher transportation costs.

• Total assets increased to ¥557.2 billion, and total equity reached ¥393.9 billion, with equity attributable to owners of parent per share at ¥2,542.12.

Financial highlights

• Operating profit margin remained stable at 4.9% year-over-year, with gross profit for the nine months at ¥53.7 billion, up from ¥50.3 billion YoY.

• Share of profit from investments using the equity method improved from -¥0.4 billion to ¥3.1 billion.

• ROE increased from 3.6% to 4.9%, and ROA from 3.6% to 4.6% year-over-year.

• Cash and cash equivalents rose to ¥61.5 billion at period end, up ¥15.1 billion from the previous year.

• Free cash flow decreased to ¥16.6 billion from ¥32.2 billion year-over-year.

Outlook and guidance

• Full-year FY2024 forecast unchanged: revenue expected at ¥415.0 billion (+5.9% YoY), operating profit at ¥20.0 billion (+20.8% YoY), and profit attributable to owners of parent at ¥16.5 billion (+49.9% YoY).

• Basic earnings per share for the full year is forecast at ¥108.05.

• ROE and ROA for the full year forecasted at 4.3% and 4.2%, respectively.