Sanyo Chemical Industries (4471) Q3 2026 earnings summary

Executive summary

• Net sales for Apr.–Dec. FY2025 declined 13.1% year-over-year to ¥96.6 billion, mainly due to withdrawal from the superabsorbent polymer business and intensified competition from low-cost Chinese products.

• Operating profit rose 10.0% year-over-year to ¥7.55 billion, and ordinary profit increased 9.4% to ¥9.39 billion, driven by improved profitability from business restructuring and supply chain streamlining.

• Profit attributable to owners of parent surged 251.8% year-over-year to ¥12.8 billion, largely due to tax effects related to deferred tax assets from the absorption of SDP Global Co., Ltd.

• Comprehensive income increased significantly to ¥21.29 billion, up 1,166.2% year-over-year.

Financial highlights

• Gross profit remained stable at ¥24.93 billion despite lower sales, reflecting improved margins.

• Total assets grew to ¥193.2 billion as of December 31, 2025, up ¥16.8 billion from March 31, 2025, and net assets rose to ¥155.4 billion, with an equity ratio of 78.9%.

• Cash and cash equivalents at period end increased to ¥30.87 billion, up ¥14.03 billion from the previous year.

• Cash flows from operating activities improved to ¥15.05 billion, up ¥5.61 billion year-over-year.

• Basic earnings per share increased to ¥578.97 from ¥164.70 year-over-year.

Outlook and guidance

• FY2026 profit attributable to owners of parent forecast revised downward to ¥14.0 billion due to higher income tax expenses and asset disposal losses.

• Net sales and operating profit forecasts remain unchanged at ¥130.0 billion and ¥10.0 billion, respectively.

• Basic earnings per share forecast reduced from ¥723.26 to ¥632.86.

• Dividend forecast remains unchanged at ¥170 per share for the fiscal year.