Tokuyama (4043) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 FY2024 were ¥165.5B, down 0.3% year-over-year due to the exclusion of Excel Shanon, but operating profit rose 63% to ¥13.9B, driven by lower coal prices, improved manufacturing costs, and strong semiconductor-related sales.

• Profit attributable to owners of parent increased 87% to ¥11.6B, supported by higher ordinary profit and extraordinary income from share transfers, cross-shareholding reductions, and gains on sale of investment securities.

• Despite market uncertainties, full-year forecasts remain unchanged as business performance is progressing in line with plans.

Financial highlights

• Net sales: ¥165.5B (down 0.3% year-over-year); operating profit: ¥13.9B (up 63%).

• Ordinary profit: ¥13.6B (up 52%); profit attributable to owners: ¥11.6B (up 87%).

• Basic EPS: ¥161.81 (up from ¥86.56 year-over-year); comprehensive income fell 27.6% to ¥8.2B due to negative other comprehensive income.

• Cost of sales decreased 6.2% year-over-year, reflecting manufacturing cost improvements.

• Cash and cash equivalents at period-end were ¥64.8B, up from ¥61.2B a year earlier.

Outlook and guidance

• FY2024 forecast unchanged: net sales ¥352.0B (+3%), operating profit ¥33.0B (+29%), profit attributable to owners ¥25.0B (+41%), EPS ¥347.48.

• Growth expected from increased sales of semiconductor-related products and lower manufacturing costs.

• Dividend forecast for FY2024 raised to ¥100 per share (from ¥80 previous year), with interim and year-end dividends of ¥50 each.