Kuraray (3405) Q3 2025 earnings summary

Executive summary

• Net sales for FY2024 3Q rose 7.0% year-over-year to ¥614.8 billion; operating income increased 19.8% to ¥73.9 billion; net income attributable to owners was ¥46.6 billion, up 27.8%.

• Growth was driven by stable U.S. consumption, gradual European recovery, and demand recovery in key segments, despite uncertainty from geopolitical tensions and Chinese economic stagnation.

• All major segments except Isoprene posted higher operating income; Isoprene saw a decline despite sales growth.

Financial highlights

• Gross profit increased to ¥207.6 billion; operating margin improved as SG&A expenses rose slower than sales.

• Ordinary income climbed 21.8% year-over-year to ¥70.3 billion; EPS for the period was ¥140.83.

• Equity ratio improved to 58.1% as of September 30, 2024; total assets stable at ¥1,254.3 billion.

• Comprehensive income for the period was ¥51.6 billion, down 49.7% year-over-year due to lower foreign currency translation gains.

• Interest-bearing debt decreased by ¥25.8 billion during the period.

Outlook and guidance

• FY2024 net sales forecast revised to ¥835.0 billion, operating income to ¥89.0 billion, and net income to ¥55.0 billion.

• Guidance unchanged from previous update; expects continued profit growth over FY2023.

• Annual dividend forecast raised to ¥54 per share; share buyback and cancellation of 30 million shares (8.45% of total) to enhance shareholder returns.