Sanyo Chemical Industries (4471) Q2 2026 earnings summary

Executive summary

• Net sales for April–September FY2025 declined 17.2% year-over-year to ¥63.77 billion, mainly due to withdrawal from the superabsorbent polymer business and increased competition from low-cost Chinese products.

• Operating profit decreased 3.7% year-over-year to ¥4.29 billion, while ordinary profit was nearly flat at ¥5.03 billion, supported by foreign exchange gains.

• Profit attributable to owners of parent surged to ¥10.41 billion from ¥940 million a year earlier, driven by recognition of deferred tax assets and business restructuring.

• Comprehensive income rose sharply to ¥14.88 billion from a loss in the prior year.

Financial highlights

• Net sales dropped by ¥13.25 billion year-over-year, primarily from the withdrawal from the SAP business and sluggish demand in several segments.

• Gross profit for the period was ¥15.80 billion, with a gross margin of 24.8%.

• Basic earnings per share increased to ¥470.92 from ¥42.55 year-over-year.

• Cash and cash equivalents at period-end were ¥28.40 billion, up ¥4.39 billion from the previous fiscal year.

• Total assets rose to ¥186.16 billion, and net assets increased to ¥151.22 billion, with an equity ratio of 79.6%.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales of ¥130.00 billion (down 8.6% year-over-year), operating profit of ¥10.00 billion (up 18.5%), ordinary profit of ¥11.00 billion (up 13.8%), and profit attributable to owners of parent of ¥16.00 billion (up 285.4%).

• Dividend payout is forecast to remain at ¥170 per share, maintaining a payout ratio above 30%.

• The company targets further improvements in supply chain efficiency and expects additional benefits from ongoing reforms.

• New business initiatives, including medical and sensor technologies, are expected to contribute to future growth.