Shikoku Kasei (4099) Q2 2025 earnings summary

Executive summary

• H1 FY2025 net sales fell 3.0% YoY to ¥34,172 million, while operating profit rose 8.6% to ¥5,253 million, a semi-annual record, on stronger fine chemicals sales.

• Ordinary profit declined 12.3% to ¥5,205 million and profit attributable to owners of parent fell 7.5% to ¥3,729 million, reflecting weaker foreign-exchange effects.

• Comprehensive income increased 20.4% YoY to ¥6,421 million.

Financial highlights

• Gross profit increased to ¥14,518 million from ¥13,875 million YoY; basic EPS was ¥84.23 versus ¥85.41.

• H1 operating profit increased ¥418 million YoY as Chemicals gains more than offset lower Housing Materials profit.

• Cash and cash equivalents were ¥27,197 million, down ¥6,541 million from FY2024 year-end; operating cash flow was ¥4,250 million, up ¥1,136 million YoY.

• Investing activities provided ¥2,816 million, while financing activities used ¥13,270 million.

Outlook and guidance

• FY2025 forecasts remain unchanged: net sales ¥70,000 million, operating profit ¥9,400 million, ordinary profit ¥9,800 million and profit attributable to owners of parent ¥6,500 million.

• Chemicals operating profit forecast rose from ¥7,950 million to ¥8,600 million; Housing Materials forecast fell from ¥1,250 million to ¥600 million.

• Forecast exchange rates are ¥145/USD, ¥165/EUR and ¥20.5/RMB; the stronger-yen dollar assumption is offset by fine chemicals strength.

• FY2025 dividend forecast remains ¥50 per share, split into ¥25 interim and ¥25 year-end.