Nissan Chemical (4021) Q1 2025 earnings summary

Executive summary

• 1Q FY2024 sales rose 7% year-over-year to ¥58.7 billion, with net income down 5% to ¥11.6 billion and operating profit down 4% to ¥14.4 billion.

• Sales, operating profit, and net income all exceeded the company's outlook, despite being below the prior year.

• Shareholder returns included a ¥10.0 billion share repurchase program announced in May 2024.

• Domestic recovery was limited by high raw material prices, though IT and auto demand improved; weak yen boosted inbound demand.

Financial highlights

• EBITDA for 1Q FY2024 was ¥18.0 billion, up ¥0.2 billion year-over-year.

• Free cash flow increased to ¥12.5 billion, up ¥5.3 billion from 1Q FY2023.

• Cash and cash equivalents at period end were ¥33.8 billion, up ¥7.3 billion from a year earlier.

• Gross profit increased to ¥28.9 billion from ¥28.3 billion year-over-year.

• Basic earnings per share was 83.78 yen, down from 87.40 yen year-over-year.

Outlook and guidance

• FY2024 outlook for 1H and full year remains unchanged from May 2024 guidance.

• Full-year net sales forecast at ¥234.1 billion (+3.3%), operating income at ¥50.0 billion (+3.7%), and net income at ¥38.4 billion (+1.0%).

• Mid-term plan targets FY2027 sales of ¥285.0 billion, operating profit of ¥67.0 billion, OP margin above 20%, and ROE above 18%.

• Dividend payout ratio target is 55%, with a total payout ratio of 75% after FY2022.