Mitsubishi Gas Chemical Company (4182) Q1 2025 earnings summary

Executive summary

• Net sales increased 0.6% year-over-year to ¥188.1 billion, driven by yen depreciation and higher sales of optical polymers and electronic materials, despite the transition of JSP Corporation to an equity-method affiliate.

• Operating profit rose sharply by 153.3% to ¥15.7 billion, supported by higher sales volumes in semiconductor-related products, cost improvements, and favorable forex effects.

• Ordinary profit increased to ¥17.95 billion, aided by higher methanol prices and improved equity in earnings of affiliates.

• Profit attributable to owners of parent declined 40.9% year-over-year to ¥11.73 billion due to the absence of prior year’s one-time gain from step acquisitions.

Financial highlights

• Net sales: ¥188.1 billion (+0.6% YoY).

• Operating profit: ¥15.7 billion (+153.3% YoY).

• Ordinary profit: ¥17.95 billion (+155.6% YoY).

• EPS: ¥58.60 (down from ¥97.00 YoY).

• Gross profit increased to ¥43.2 billion from ¥37.6 billion YoY.

• Comprehensive income decreased 14.2% YoY to ¥27.3 billion.

• Total assets grew to ¥1,093.3 billion as of June 30, 2024, with an equity ratio of 61.6%.

Outlook and guidance

• FY2024 full-year net sales forecast revised to ¥790.0 billion, operating profit to ¥54.0 billion, and profit attributable to owners of parent to ¥48.0 billion.

• Operating profit projected at ¥54 billion (up 14.1%), ordinary profit at ¥62 billion (up 34.7%).

• Annual dividend forecast raised to ¥90 per share.

• 2Q net sales expected at ¥201.8 billion (+7.3% QoQ), with operating profit forecast to decrease to ¥12.2 billion (-22.0% QoQ).

• 2H net sales revised down by ¥10.0 billion due to LNG sales timing; operating and ordinary profit unchanged.

• FX assumptions: $1 = ¥150, €1 = ¥160; crude oil at $80/bbl.