Nissan Chemical (4021) Q2 2025 earnings summary

Executive summary

• 1H FY2024 sales rose 12% year-over-year to ¥118.2B, operating profit up 18% to ¥28.3B, and net income up 5% to ¥20.5B, all exceeding initial targets.

• All major income metrics exceeded both the prior year and the May 2024 outlook.

• Performance was driven by strong demand recovery in semiconductors, increased sales in agricultural chemicals, and robust trading segment growth.

• Upward revision of FY2024 full-year outlook: sales expected at ¥245.0B (+8%), operating profit at ¥53.0B (+10%), and net income at ¥39.4B (+4%) compared to FY2023.

• Annual dividend forecast maintained at ¥164/share; share repurchase of ¥10.0B planned for FY2024.

Financial highlights

• 1H FY2024 sales: ¥118.2B (+12% YoY); operating profit: ¥28.3B (+18% YoY); net income: ¥20.5B (+5% YoY); EPS: ¥148.78 (+9.23 YoY).

• Gross profit increased to ¥56.9B from ¥51.5B YoY; operating income rose to ¥28.3B from ¥24.1B.

• Net cash provided by operating activities was ¥46.2B, up from ¥36.0B YoY.

• Cash and cash equivalents at period end were ¥30.4B, up from ¥21.2B a year earlier.

• 1H dividend: ¥70/share; share repurchase of ¥5.0B completed.

Outlook and guidance

• FY2024 full-year sales forecast: ¥245.0B (+8% YoY); operating profit: ¥53.0B (+10% YoY); net income: ¥39.4B (+4% YoY); ROE: 17.1%.

• Full-year sales forecast revised upward to ¥245.0B (+4.7% vs. previous outlook), operating income at ¥53.0B (+6.0%).

• Segment guidance raised for Performance Materials, Agricultural Chemicals, and Trading, reflecting strong first-half performance.

• Annual dividend forecast unchanged at ¥164/share; total payout ratio outlook at 82.4%.

• Share repurchase of ¥10.0B planned for April 2024–March 2025.