Shikoku Kasei (4099) Q3 2024 earnings summary

Executive summary

• 9M FY2024 net sales rose 13.3% YoY to ¥52,999m and operating profit rose 23.3% to ¥7,555m, both records; profit attributable to owners of parent rose 3.7% to ¥6,764m.

• Overseas sales accounted for 41.4% of consolidated net sales, driven by strong Chemicals performance and a weaker yen.

• Comprehensive income declined 16.5% YoY to ¥6,334m, mainly due to negative securities valuation differences.

Financial highlights

• Ordinary profit increased 6.4% to ¥7,884m; gross profit rose to ¥20,943m from ¥17,726m, and basic EPS increased to ¥145.59 from ¥125.54.

• FX gains and losses were ¥150m, down ¥920m YoY; investment-securities sale gains were ¥1,807m, down ¥263m YoY.

• Operating profit increased ¥1,425m YoY as Chemicals sales and FX benefits offset higher transportation and SG&A costs; FX contributed ¥1,240m, while aluminum purchases had an adverse FX impact of ¥110m.

Outlook and guidance

• FY2024 forecast: net sales ¥68,000m, operating profit ¥8,200m, ordinary profit ¥9,500m and parent-attributable profit ¥7,900m; 9M progress was 78% for sales and 92% for operating profit.

• Chemicals forecast: sales ¥48,000m and operating profit ¥7,200m; Housing Materials forecast: sales ¥19,000m and operating profit ¥800m.

• Forecast exchange assumptions are ¥150/USD and ¥160/EUR; each ¥1 move against the dollar is estimated to affect sales by ¥180m and operating profit by ¥110m.