Sanyo Chemical Industries (4471) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales rose 19.0% YoY to ¥75,880 million; operating profit more than doubled to ¥9,167 million, while profit attributable to owners of parent fell 21.9% to ¥8,137 million.

• FY2027 earnings forecasts were revised to ¥150,000 million net sales, ¥15,000 million operating profit, ¥17,500 million ordinary profit and ¥12,500 million parent profit.

Financial highlights

• H1 gross profit rose to ¥21,418 million from ¥15,798 million; SG&A increased to ¥12,251 million from ¥11,508 million.

• Ordinary profit increased to ¥11,039 million from ¥5,030 million; profit before income taxes rose to ¥11,471 million from ¥3,998 million.

• Income tax expense was ¥2,765 million versus a ¥6,795 million tax benefit in the prior-year period, contributing to the lower parent profit despite higher pretax profit.

• Operating cash flow was ¥9,402 million; cash and cash equivalents ended H1 at ¥39,632 million, up from ¥34,378 million at the start of the period.

Outlook and guidance

• FY2027 forecast: net sales ¥150,000 million (+17.3%), operating profit ¥15,000 million (+49.9%), ordinary profit ¥17,500 million (+42.8%) and parent profit ¥12,500 million (-20.1%).

• Forecast basic EPS is ¥142.18, calculated assuming the 4-for-1 stock split took place at the start of FY2027; the forecast incorporates the impact of share buybacks.