Nippon Shokubai (4114) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 revenue reached ¥105.1 billion, up 7.9% year-over-year, while operating profit declined 22.8% to ¥5.2 billion due to narrower spreads and absence of prior year asset sale gains.

• Profit before tax was ¥6.4 billion, down 8.5% year-over-year; profit attributable to owners of parent was ¥4.6 billion, up 1.2%.

• Basic earnings per share for Q1 FY2024 was ¥29.98, reflecting a 4-for-1 stock split effective April 1, 2024.

• Volume growth in SAP, AA, and AES, and improved equity in earnings of affiliates partially offset profit declines.

Financial highlights

• Operating profit margin decreased to 4.9% from 6.9% year-over-year.

• ROE and ROA slightly decreased to 4.8% and 4.7%, respectively.

• EBITDA for Q1 was ¥14.7 billion, down from ¥15.3 billion in the prior year.

• Free cash flow improved to ¥11.7 billion from ¥8.2 billion year-over-year.

• Gross profit increased to ¥18.1 billion from ¥17.4 billion year-over-year.

Outlook and guidance

• Full-year FY2024 revenue forecast revised upward to ¥415.0 billion (+5.9% year-over-year), operating profit to ¥18.0 billion (+8.7%), and profit attributable to owners of parent to ¥15.0 billion (+36.3%).

• Basic earnings per share for the full year is forecast at ¥98.12.

• Upward revision driven by yen depreciation, higher export prices, and increased volumes in AA, AES, and SAP.

• Dividend forecast for FY2024 is ¥35 per share at both interim and year-end, totaling ¥70 per share post-stock split, with potential revision pending full-year performance.