Sanyo Chemical Industries (4471) Q4 2025 earnings summary

Executive summary

• Net sales for FY2024 declined 10.8% year-over-year to ¥142.25 billion, primarily due to withdrawal from the superabsorbent polymer business and structural reforms.

• Operating profit rose 72.7% year-over-year to ¥8.43 billion, driven by cost reductions, structural reforms, and strong performance in advanced semiconductors and high-value-added products.

• Profit attributable to owners of parent rebounded to ¥4.15 billion from a loss of ¥8.50 billion in FY2023, reflecting reduced extraordinary losses and restructuring expenses.

• Withdrawal from the superabsorbent polymers (SAP) business and production in China contributed to improved profitability.

Financial highlights

• Operating profit increased by ¥3.55 billion year-over-year, driven by cost reductions, exchange effects, and supply chain reforms.

• Ordinary profit rose 18.1% to ¥9.67 billion, and comprehensive income turned positive at ¥0.72 billion.

• Gross profit increased to ¥32.05 billion from ¥29.28 billion year-over-year.

• Equity ratio improved to 76.8% from 67.6% year-over-year.

• Free cash flow was ¥8.85 billion, down from ¥13.55 billion in the prior year.

Outlook and guidance

• FY2025 net sales are forecast to decline 8.6% to ¥130.0 billion, but operating profit is expected to rise 18.5% to ¥10.0 billion.

• Profit attributable to owners of parent is projected to nearly double to ¥8.0 billion.

• Operating profit margin is forecast at 7.7%, exceeding the medium-term plan target.

• Annual dividend forecast remains at ¥170 per share, with a projected payout ratio of 47.0%.