Sumitomo Seika Chemicals (4008) Q2 2026 earnings summary

Executive summary

• Net sales for FY2025 2Q were ¥72.7 billion, down 1.7% year-over-year, mainly due to the termination of the IR latex business and yen appreciation, despite increased Super Absorbent Polymers (SAP) sales volume.

• Operating profit rose 19.9% to ¥5.9 billion, driven by lower raw material and fuel costs.

• Ordinary profit increased 18.0% to ¥5.6 billion.

• Profit attributable to owners declined 1.6% to ¥3.3 billion due to extraordinary losses related to mischarges.

• Comprehensive income surged 232% year-over-year to ¥4,272 million.

Financial highlights

• Gross profit increased to ¥16,236 million from ¥14,925 million year-over-year.

• Operating profit margin improved, with operating profit at ¥5,881 million versus ¥4,905 million a year earlier.

• Net assets rose to ¥97,294 million, and the equity-to-asset ratio improved to 68.2%.

• Full-year FY2025 forecast: net sales ¥145.0 billion (-1.7% YoY), operating profit ¥11.3 billion (+5.5%), net profit ¥4.4 billion (-26.2%).

• Cash flows from operating activities increased to ¥6,882 million, while investing activities used ¥4,546 million.

Outlook and guidance

• SAP sales volume expected to grow, but net sales to decline due to yen strength and IR latex business termination.

• Operating profit forecast to rise on lower input costs; net profit to fall due to extraordinary losses and restructuring costs.

• Dividend forecast maintained at ¥200/share; treasury stock acquisition planned.

• Basic earnings per share for the year ending March 31, 2026, is projected at ¥336.90.