Resonac (4004) Q2 2024 earnings summary

Executive summary

• Net sales rose 8.5% year-on-year to ¥668.5 billion in 1H 2024, with operating income swinging from a loss to a ¥28.0 billion profit, and net income improving from a loss to ¥38.4 billion, driven by Semiconductor and Electronic Materials growth while Chemicals lagged.

• Full-year 2024 forecast revised upward, expecting higher sales and income versus 2023.

Financial highlights

• Operating income was ¥28.0 billion in 1H 2024, reversing a prior-year loss; net income attributable to owners was ¥38.4 billion, up sharply year-on-year.

• EBITDA for 1H 2024 was ¥83.8 billion (12.5% margin), up from ¥41.0 billion (6.7%) in 2023 1H.

• Extraordinary profit of ¥17.6 billion included a ¥20.2 billion gain from asset sales.

• Free cash flow in 1H 2024 was ¥42.2 billion, up from ¥2.9 billion in 1H 2023.

Outlook and guidance

• Full-year 2024 net sales forecast raised to ¥1,392.0 billion, operating income to ¥61.0 billion, and net income to ¥35.0 billion.

• EBITDA expected at ¥171.3 billion (12.3% margin); ROIC forecast at 3.0%.

• Semiconductor and Electronic Materials segment expected to drive most of the growth, with operating income forecast at ¥50.0 billion.

• Annual dividend maintained at ¥65 per share.