Osaka Organic Chemical Industry (4187) Q4 2024 earnings summary

Executive summary

• Net sales for FY11/24 rose 13.1% year-over-year to ¥32,698 million, driven by strong Chemicals and recovering Electronics Materials sales, while Specialty Chemicals saw a slight decline.

• Operating profit increased 28.8% year-over-year to ¥4,608 million, despite higher depreciation and costs.

• Profit attributable to owners of parent grew 23.7% year-over-year to ¥4,044 million.

• Launched new medium-term management plan (P&D 2030) focusing on ESG, global expansion, and innovation in specialty acrylic acid esters.

Financial highlights

• Ordinary profit rose 22.6% year-over-year to ¥4,753 million.

• Gross profit increased to ¥9,688 million from ¥7,959 million year-over-year.

• Operating profit margin improved to 14.1% from 12.4% year-over-year.

• Cash and deposits at year-end rose to ¥13,047 million from ¥7,890 million, a 65.4% increase.

• Dividend per share increased to ¥66, marking 10 consecutive years of dividend growth.

Outlook and guidance

• FY11/25 net sales forecasted at ¥34,000 million (+4.0%), with operating profit at ¥5,000 million (+8.5%).

• Profit attributable to owners of parent expected to decrease 13.5% due to absence of prior year extraordinary income.

• Dividend forecast for FY11/25 is ¥68 per share, aiming for an approx. 40% payout ratio.

• Management expects continued uncertainty due to global economic risks, raw material price hikes, and geopolitical tensions.