Sumitomo Seika Chemicals (4008) Q2 2025 earnings summary

Executive summary

• Net sales for 2Q FY2024 were ¥74.0B (up 6.2% YoY), while for the six months ended September 30, 2025, net sales were ¥72,705 million (down 1.7% YoY); operating profit increased 29.8% YoY to ¥4.9B and 19.9% to ¥5,881 million, respectively.

• Profit attributable to owners of the parent was ¥3.3B (up 16.2% YoY) in 2Q FY2024, but declined 1.6% to ¥3,275 million for the six months due to additional provisions for mischarging expenses.

• Comprehensive income surged 232% YoY to ¥4,272 million.

• Full-year forecasts anticipate continued growth in net sales and operating profit, mainly from super absorbent polymers and electronics gases, but profit outlook is reduced due to one-time charges.

Financial highlights

• 2Q FY2024 net sales: ¥74.0B (+6.2% YoY); operating profit: ¥4.9B (+29.8% YoY); net profit: ¥3.3B (+16.2% YoY).

• Gross profit increased to ¥16,236 million from ¥14,925 million YoY.

• ROE improved to 3.5% (+0.3pt YoY); ROIC rose to 3.3% (+0.6pt YoY); full-year ROIC forecast at 7.3%.

• Full-year FY2024 forecast: net sales ¥147.0B (+2.8% YoY), operating profit ¥10.0B (+4.9% YoY), net profit ¥7.0B (+13.5% YoY); another forecast: net sales ¥145,000 million (-1.7% YoY), operating profit ¥11,300 million (+5.5%), net profit ¥4,400 million (-26.2%).

• Basic earnings per share was ¥249.85, nearly flat YoY; full-year projection is ¥336.90.

Outlook and guidance

• Net sales and operating profit expected to rise for FY2024, supported by increased sales volumes and favorable FX trends, but profit outlook is reduced due to restructuring and mischarging provisions.

• Dividend forecast is unchanged at ¥200 per share for the full year.

• Super absorbent polymers segment to see strong growth; functional materials segment expected to decline due to lower IR latex sales and higher fixed costs.