Sanyo Chemical Industries (4471) Q1 2027 earnings summary

Executive summary

• Net sales for Apr–Jun FY2026 rose 20.9% year-over-year to ¥38.67 billion, driven by product price revisions, increased demand for high-value-added products, and temporary supply disruptions in imports.

• Operating profit surged 176% year-over-year to ¥5.12 billion, and ordinary profit increased 187% to ¥6.55 billion, reflecting higher sales volumes and a time lag in cost increases.

• Profit attributable to owners of parent decreased 48% year-over-year to ¥4.67 billion due to the absence of prior-year tax benefits.

• Upward revision of full-year earnings forecast driven by strong demand for high-value-added products and temporary supply disruptions in imports.

Financial highlights

• Gross profit increased from ¥7,640 million to ¥11,243 million year-over-year.

• Free cash flow improved to ¥2.52 billion from ¥1.02 billion year-over-year.

• Total assets increased to ¥203.6 billion as of June 30, 2026, with cash and deposits up by ¥6.9 billion.

• Net assets increased to ¥165.8 billion, with an equity ratio of 79.7%.

• Shareholders’ equity rose to ¥135.4 billion, reflecting profit growth and dividend payments.

Outlook and guidance

• Full-year net sales forecast revised to ¥150.0 billion (up 17.3% year-over-year); operating profit forecast raised to ¥13.0 billion, ordinary profit to ¥15.0 billion, and profit attributable to owners of parent to ¥11.0 billion.

• Basic earnings per share forecast at 406.85 yen (pre-share split basis) and ¥125.32 post-split.