Shin-Etsu Chemical (4063) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2025 were ¥597.9 billion, down 0.2% year-over-year; operating income was ¥191.0 billion, up 0.1% year-over-year.

• Net income attributable to owners of parent was ¥144.0 billion, a 6.3% decrease year-over-year.

• Comprehensive income surged 76.6% to ¥326.6 billion, mainly due to foreign currency translation gains.

• Overseas sales accounted for 79% of total net sales in Q1.

Financial highlights

• Gross profit was ¥242.6 billion, up slightly from ¥241.2 billion year-over-year.

• Ordinary income rose 1.2% to ¥219.8 billion.

• Net assets increased to ¥4,635.7 billion, with a stockholders' equity ratio of 83.6%.

• Cash and time deposits stood at ¥1,684.0 billion at quarter-end.

• Dividend forecast for FY2025 raised to ¥106 per share, up ¥6 from the previous year.

Outlook and guidance

• FY2025 net sales forecast at ¥2,500.0 billion (+3.5%), operating income at ¥735.0 billion (+4.8%), and net income at ¥533.0 billion (+2.5%).

• Annual dividend forecast of ¥106 per share, reflecting a 40% payout ratio.

• Management notes ongoing global economic uncertainty, currency fluctuations, and market volatility as key variables.