Unitika (3103) Q2 2025 earnings summary

Executive summary

• Net sales rose 6.1% year-over-year to ¥61,550 million for the interim period ending September 30, 2024, driven by recovery in food packaging and electronic materials demand, and cost reduction efforts.

• Operating profit reached ¥2,233 million, reversing a prior-year loss, while ordinary profit was ¥1,151 million, up from ¥88 million a year earlier.

• A significant impairment loss of ¥10,674 million at a Southeast Asian subsidiary led to a net loss attributable to owners of parent of ¥9,842 million, compared to a ¥409 million loss last year.

Financial highlights

• Gross profit increased to ¥12,303 million from ¥8,938 million year-over-year.

• Cash and cash equivalents at period-end rose to ¥13,193 million, up ¥3,006 million from the previous year-end.

• Total assets decreased to ¥176,351 million, and net assets fell to ¥30,608 million, reflecting the impairment loss.

• Capital adequacy ratio declined to 16.7% from 19.7% at the previous year-end.

Outlook and guidance

• Full-year net sales forecast is ¥120,000 million (+1.4% year-over-year), with operating profit of ¥3,000 million and ordinary profit of ¥1,400 million.

• Net loss attributable to owners of parent is projected at ¥10,300 million for the full year, reflecting the extraordinary loss.

• Dividend forecast remains at ¥0.00 per share for both common and class shares.