Mitsui Chemicals (4183) Q1 2025 earnings summary

Executive summary

• Sales revenue, operating income, and net income all increased year-on-year in Q1 FY2024, driven by higher sales volumes, improved terms of trade, and favorable foreign exchange impacts.

• Growth domains benefited from sales volume recovery and FX, while Basic & Green Materials saw gains from price revisions, restructuring, and inventory valuation.

• Segment classifications were revised following organizational reforms effective April 1, 2024.

Financial highlights

• Q1 FY2024 sales revenue: ¥449.5B, up 10.2% year-on-year; operating income before special items: ¥30.2B, up 44.1% year-on-year.

• Net income attributable to owners: ¥17.9B, up 86.5% year-on-year.

• Free cash flow Q1 FY2024: ¥15.9B positive, reversing a prior year outflow.

• Cash and cash equivalents at quarter-end: ¥223.5B, up ¥13.2B from previous year-end.

• Gross profit reached ¥99.8B, up from ¥87.2B year-on-year.

Outlook and guidance

• H1 FY2024 sales revenue forecast revised upward to ¥910.0B, up 10% year-on-year.

• Operating income before special items forecast unchanged at ¥52.0B, up 24% year-on-year.

• Net income forecast: ¥29.0B, up 40% year-on-year.

• Dividend outlook raised to ¥150 per share for FY2024, with interim at ¥75.

• Full-year outlook unchanged; impact from Osaka ethylene plant outage not yet included.