Tokuyama (4043) Q1 2025 earnings summary

Executive summary

• Revenue declined year-over-year due to exclusion of Excel Shannon from consolidation and sluggish semiconductor-related sales, but a full recovery is expected in the second half.

• Operating profit increased 45.9% to ¥7,502 million, and net income attributable to owners rose 72.0% to ¥7,402 million, driven by lower manufacturing costs and higher caustic soda exports.

• Special gains from investment securities sales, Sun-Tox integration, and business reorganization contributed to higher pre-tax profit.

• Progress is in line with expectations, and full-year earnings guidance and dividend forecast remain unchanged.

Financial highlights

• Revenue: ¥82.5 billion, down 2.8% (¥2.3 billion) year-over-year.

• Operating profit: ¥7.5 billion, up 45.9% (¥2.3 billion) year-over-year.

• Net income attributable to parent: ¥7.4 billion, up 72% (¥3.0 billion) year-over-year.

• EPS: ¥102.89, up from ¥59.82 year-over-year.

• Gross profit increased to ¥26,855 million, with cost of sales down 8.7% year-over-year.

Outlook and guidance

• Full-year revenue forecast maintained at ¥352.0 billion (+2.9% year-over-year).

• Full-year operating profit forecast unchanged at ¥33.0 billion (+28.7% year-over-year).

• Net income forecast at ¥25.0 billion (+40.8% year-over-year), with EPS projected at ¥347.48.

• Dividend forecast unchanged at ¥100 per share for the year.

• Semiconductor-related product demand expected to recover in the second half.