Osaka Soda Co (4046) Q2 2025 earnings summary

Executive summary

• Achieved significant YoY growth in sales and profits for 1H FY2024, driven by resolution of production issues and robust healthcare and functional chemicals segment performance.

• Net sales rose 7.6% YoY to ¥50,167 million for the six months ended September 30, 2024.

• Operating income increased 41.7% YoY to ¥6,967 million; ordinary profit up 19.4% to ¥7,185 million; net income up 20.4% to ¥4,866 million.

• Recorded the second-highest profit ever despite softening market conditions for basic chemicals.

• Advanced medium-term management plan, focusing on strengthening businesses, new product development, and sustainability.

Financial highlights

• Net sales rose 7.6% YoY to ¥50,167 million; operating income up 41.7% to ¥6,967 million; net income up 20.4% to ¥4,866 million; EPS was ¥38.36 (post-stock split basis).

• Gross profit increased from ¥12,156 million to ¥14,654 million YoY.

• Comprehensive income declined 45.4% YoY to ¥4,105 million.

• Overseas sales increased by ¥4,970 million YoY, reaching 38.9% of total sales.

• Cash and cash equivalents at period-end rose by ¥4,531 million to ¥42,963 million.

Outlook and guidance

• FY2024 forecast targets record-high operating and net income, with net sales expected to reach ¥103,000 million (up 8.9% YoY); operating income forecast at ¥16,000 million (+52.5% YoY), net income at ¥11,500 million (+50.3% YoY).

• Ordinary profit forecast at ¥16,800 million (+39.9% YoY).

• Healthcare segment expected to continue strong growth; basic chemicals to recover as production normalizes.

• Dividend per share planned at ¥19, with a target total shareholder return ratio of 40%.

• No changes to previously announced earnings forecasts.