Osaka Organic Chemical Industry (4187) Q3 2024 earnings summary

Executive summary

• Net sales rose 9.3% year-over-year to ¥23,784 million, driven by strong demand for adhesives for displays and a gradual recovery in semiconductor materials, with profit attributable to owners of parent up 4.9% to ¥2,813 million.

• Operating profit declined 1.9% year-over-year to ¥2,997 million, mainly due to increased depreciation and amortization from new semiconductor facilities; ordinary profit fell 7.0% to ¥3,067 million.

• The company launched its medium-term management plan, P&D 2030, focusing on ESG and global market expansion.

Financial highlights

• Net sales: ¥23,784 million (+9.3% YoY); operating profit: ¥2,997 million (-1.9% YoY); ordinary profit: ¥3,067 million (-7.0% YoY); profit attributable to owners: ¥2,813 million (+4.9% YoY).

• Gross profit for the nine months was ¥6,730 million, up from ¥6,232 million year-over-year.

• Basic earnings per share increased to ¥133.00 from ¥125.22 year-over-year.

• Total assets increased to ¥57,847 million from ¥54,637 million at the previous fiscal year-end; net assets rose to ¥44,838 million, with a capital adequacy ratio of 76.4%.

• Depreciation for the period was ¥2,425 million, up from ¥1,588 million year-over-year.

Outlook and guidance

• Uncertainty persists due to high interest rates in Europe/US, China’s real estate stagnation, rising prices, and geopolitical risks.

• Full-year forecasts: net sales ¥32,000 million (up 10.7% YoY), operating profit ¥4,200 million (up 17.4%), ordinary profit ¥4,400 million, profit attributable to owners ¥3,700 million (up 13.1%).

• Dividend forecast is unchanged at ¥64 per share for the full year.