Mitsubishi Gas Chemical Company (4182) Q2 2025 earnings summary

Executive summary

• Net sales for FY2024 1H decreased 2.9% year-over-year to ¥388.1 billion, mainly due to the transition of JSP Corporation to an equity-method affiliate, despite higher methanol prices and yen depreciation.

• Operating profit rose 52.7% year-over-year to ¥33.7 billion, driven by strong performance in the Specialty Chemicals segment.

• Ordinary profit increased 50.1% to ¥37.4 billion, supported by higher operating profit and improved equity in earnings of affiliates.

• Interim profit attributable to owners of parent fell 20.8% to ¥24.7 billion, reflecting the absence of a prior-year gain from step acquisitions.

Financial highlights

• FY2024 1H EPS was ¥123.47, down from ¥152.67 in the prior year.

• Gross profit for the period was ¥89.4 billion, up from ¥86.4 billion in the previous year.

• Comprehensive income dropped 48.5% year-over-year to ¥29.99 billion.

• Free cash flow turned negative at -¥14.0 billion, compared to ¥17.6 billion in the prior year, due to higher investing cash outflows.

• Total assets increased to ¥1,087.5 billion as of September 30, 2024.

Outlook and guidance

• Full-year FY2024 net sales forecast revised down to ¥770.0 billion, but operating profit and ordinary profit forecasts raised to ¥56.0 billion and ¥63.0 billion, respectively.

• EPS for the full year is projected at ¥243.10.

• Annual dividend forecast revised upward to ¥95.00 per share.

• Share repurchases of up to ¥15 billion (5.6 million shares) and cancellation of repurchased shares announced.