Nippon Soda (4041) Q1 2025 earnings summary

Executive summary

• Net sales for 1Q FY2025 were ¥32.20B, down 10.3% year-over-year; operating profit fell 36.3% to ¥3.07B.

• Profit attributable to owners was ¥4.34B, a decrease of 8.6% year-over-year.

• Comprehensive income declined 29.2% year-over-year to ¥6.29B.

• Sales increased in Chemical Materials but declined sharply in Agri Business due to prior anticipatory shipments and inventory adjustments.

• Share of profit from equity-method entities rose significantly, aided by a gain on sale of investment securities.

Financial highlights

• Net sales: ¥32.20B (down ¥3.70B, -10.3% year-over-year).

• Operating profit: ¥3.07B (down ¥1.75B, -36.3%).

• Ordinary profit: ¥5.23B (down ¥0.90B, -14.7%).

• EPS: ¥157.54 (down ¥12.63, -7.4%).

• Total assets as of June 30, 2024, were ¥291.86B; net assets at ¥192.36B.

Outlook and guidance

• Full-year FY2025 net sales forecast at ¥152.00B.

• Operating profit forecast at ¥12.60B.

• Profit attributable to owners forecast at ¥12.30B; EPS forecast at ¥223.36.

• Agri Business expected to continue shipping adjustments and higher R&D expenses.

• 2-for-1 share split planned for October 1, 2024.