Osaka Soda Co (4046) Q2 2026 earnings summary

Executive summary

• Net sales for 1H FY2025 decreased 2.7% year-over-year to ¥48,832 million, but all profit stages increased, with operating profit rising 16.4% to ¥8,111 million and net income up 38.8% to ¥6,755 million, reaching the second highest levels since 1H FY2022.

• Extraordinary gain from investment securities sale contributed to higher net income.

• The company advanced its medium-term management plan, focusing on strengthening existing businesses, new product creation, and sustainability management.

• Healthcare business saw strong demand for pharmaceutical purification materials, with new facility expansions completed ahead of schedule.

• Operating income exceeded both year-over-year and initial forecasts due to cost reductions and improved market conditions.

Financial highlights

• 1H FY2025 net sales: ¥48,832 million (down ¥1,335 million YoY); operating income: ¥8,111 million (up ¥1,144 million YoY); net income: ¥6,755 million (up ¥1,889 million YoY).

• Operating profit increased 16.4% YoY to ¥8,111 million; ordinary profit rose 24.0% to ¥8,910 million.

• Comprehensive income more than doubled to ¥8,270 million, up 101.4% YoY.

• Basic earnings per share rose to ¥53.74 from ¥38.36 YoY, reflecting a 5-for-1 stock split.

• Overseas sales accounted for 38.6% of total sales.

Outlook and guidance

• FY2025 full-year forecast revised upward: net sales ¥102,000 million (+5.8% YoY), operating income ¥17,300 million (+30.6%), ordinary profit ¥18,700 million (+32.1%), net income ¥13,500 million (+30.7%), EPS ¥108.28.

• Dividend forecast revised: interim dividend ¥12.00, year-end dividend ¥13.00 per share.

• Continued profit growth expected, driven by basic chemicals and healthcare expansion.

• Overseas sales projected to rise to ¥39,300 million.