Shin-Etsu Polymer (7970) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 FY2024 were ¥25,625 million, down 3.6% year-over-year, with operating profit up 5.7% to ¥3,218 million and profit attributable to owners of parent down 1.5% to ¥2,265 million.

• Comprehensive income rose sharply to ¥4,890 million, up 66.5% year-over-year, mainly due to foreign currency translation gains.

• The business environment saw strong consumer spending in Europe/US, a slowdown in China, and a recovery in Japanese exports, especially automotive.

Financial highlights

• Operating profit margin improved as operating profit increased despite lower sales.

• Gross profit rose to ¥8,240 million from ¥7,941 million year-over-year.

• Basic earnings per share for Q1 FY2024 was ¥28.05.

• Equity ratio stood at 79.1% as of June 30, 2024.

Outlook and guidance

• FY2025 full-year forecast: net sales ¥106,000 million (+1.6%), operating profit ¥12,800 million (+15.8%), profit attributable to owners of parent ¥8,800 million (+1.4%).

• Annual dividend per share forecast raised to ¥48, up ¥2 from the previous year.