Ishihara Sangyo Kaisha (4028) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 FY2024 was ¥74.5 billion, up ¥6.9 billion year-over-year, with operating profit at ¥2.6 billion, up ¥0.3 billion year-over-year.

• Net sales for the six months ended September 30, 2024, increased by 10.4% year-over-year to ¥74,522 million.

• Operating income rose 16.4% to ¥2,653 million, but net income dropped 80.6% to ¥727 million compared to the same period last year.

• Net profit declined to ¥0.7 billion, down ¥3 billion year-over-year, mainly due to foreign exchange losses.

• Organic chemicals saw strong demand for fungicides and insecticides in Europe; inorganic chemicals benefited from robust overseas demand for electronic materials.

Financial highlights

• Q2 FY2024 revenue: ¥74.5 billion (up ¥6.9 billion YoY); operating profit: ¥2.6 billion (up ¥0.3 billion YoY).

• Gross profit increased to ¥16,906 million from ¥14,975 million year-over-year.

• Ordinary profit: ¥2.4 billion (down ¥3 billion YoY); net profit: ¥0.7 billion (down ¥3 billion YoY).

• Ordinary income fell 55.0% to ¥2,486 million.

• Foreign exchange loss of ¥1.1 billion recorded due to yen appreciation at quarter-end.

• Net income per share was ¥19.03, down from ¥98.24 in the prior year.

• Cash and deposits rose to ¥26,268 million from ¥19,982 million at the previous fiscal year-end.

• Cash flows from operating activities surged to ¥18,245 million from ¥3,367 million year-over-year.

• Full-year revenue forecast revised to ¥148 billion, with operating profit at ¥10 billion.

Outlook and guidance

• Full-year net sales are forecast at ¥148,000 million, up 6.9% year-over-year.

• Operating income is projected to decline 13.0% to ¥10,000 million, and net income to fall 24.9% to ¥6,000 million.

• Full-year sales expected to slightly increase versus initial forecast; profits to remain largely unchanged.

• Organic chemicals to maintain strong performance in Europe and Americas, especially for fungicides and herbicides.

• Inorganic chemicals to see continued overseas demand for electronic materials, but titanium dioxide market remains weak.

• Annual dividend forecast is ¥70.00 per share, unchanged from the previous year.