Zeon (4205) Q3 2025 earnings summary

Executive summary

• Q3 FY2024 net sales reached ¥102.1B, down 5% QoQ, with operating income at ¥7.4B, down 5% QoQ, but net income surged 91% QoQ to ¥7.8B due to gains on investment securities sales.

• For Q1–Q3 FY2024, net sales rose 11.1% YoY to ¥315.4B, operating income increased 51.2% YoY to ¥24.2B, and ordinary income grew 37.4% YoY to ¥27.4B.

• Profit attributable to owners of parent declined 3.7% YoY to ¥20.1B despite higher sales and operating profit.

• FY2024 full-year forecast revised upward: net sales ¥417.0B (+9.1% YoY), operating income ¥26.5B (+29.3%), net income ¥23.5B.

• The business environment showed gradual recovery but remained uncertain due to high interest rates, exchange rate volatility, and geopolitical risks.

Financial highlights

• Q3 net sales decreased by ¥5.2B QoQ but increased ¥3.7B YoY; operating income fell ¥0.4B QoQ but rose ¥0.8B YoY.

• Gross profit increased to ¥90.3B from ¥76.7B YoY.

• Basic earnings per share for the nine months was ¥96.74, down from ¥98.95 YoY.

• Total assets increased to ¥538.6B, net assets decreased to ¥349.0B as of Dec 31, 2024.

• Dividend forecast for FY2024 is ¥70/share, up ¥25 YoY, marking 15 consecutive years of increases.

Outlook and guidance

• FY2024 forecast: net sales ¥417.0B, operating income ¥26.5B, ordinary income ¥30.0B, net income ¥23.5B.

• Basic earnings per share for the full year projected at ¥114.30.

• Assumptions: US$=¥150, €=¥155, naphtha ¥72,000/KL, Asian butadiene $1,200/MT.

• Shareholder return policy maintains DOE at least 4%, with share buyback up to ¥20B.

• Dividend forecast maintained at ¥70.00 per share for the fiscal year.