Shikoku Kasei (4099) Q4 2024 earnings summary

Executive summary

• FY2024 net sales, operating profit, ordinary profit and profit attributable to owners of parent reached records, supported by overseas Chemicals growth and yen depreciation.

• Overseas sales rose to 39.4% of consolidated net sales from 35.8%.

Financial highlights

• FY2024 net sales were ¥69,493m (+10.1% YoY), operating profit ¥9,741m (+21.5%), ordinary profit ¥10,779m (+16.2%) and profit attributable to owners of parent ¥8,813m (+12.2%).

• Gross profit increased to ¥27,670m from ¥23,643m; basic EPS rose to ¥191.38 from ¥152.12.

• Operating profit rose ¥1,721m YoY as Chemicals gained ¥2,230m, partly offset by a ¥550m decline in Housing Materials.

• FY2024 ordinary profit included ¥389m in foreign-exchange gains; investment-securities sales contributed ¥1,807m.

Outlook and guidance

• FY2025 net sales are forecast at ¥70,000m (+0.7%), operating profit at ¥9,400m (−3.5%), ordinary profit at ¥9,800m (−9.1%) and profit attributable to owners of parent at ¥6,500m (−26.2%).

• FY2025 sales forecasts are ¥50,000m for Chemicals and ¥19,000m for Housing Materials; operating profit is expected to fall on lower Chemicals unit prices and higher depreciation, partly offset by Housing Materials price revisions.

• FY2025 guidance excludes recurrence of FY2024 FX and securities-sale gains; planning rates are US$1=¥150, €1=¥160 and RMB1=¥21.

• FY2025 dividend is forecast at ¥50 per share, unchanged from FY2024.