Toagosei (4045) Q3 2024 earnings summary

Executive summary

• Net sales for the nine months ended September 30, 2024, rose 6.2% year-over-year to ¥123,363 million, with 3Q FY2024 net sales up 6.6% to ¥41,792 million.

• Operating income for the nine months increased 33.1% year-over-year to ¥10,762 million, with 3Q FY2024 operating income up 2.9% to ¥3,439 million.

• Net income attributable to owners of parent grew 28.5% year-over-year to ¥10,506 million for the nine months, with 3Q FY2024 net income up 28.1% to ¥3,465 million.

• Comprehensive income for the period was ¥11,064 million, down 20.8% year-over-year.

• Toagosei Vietnam Co., Ltd. was newly included in the scope of consolidation from 2Q FY2024.

Financial highlights

• Operating income margin improved to 8.7% for 1-3Q FY2024 from 7.0% a year earlier.

• Net income per share rose 34.2% year-over-year to ¥92.15 for the nine-month period.

• Extraordinary gains included a ¥3,360 million gain on sales of investment securities and a ¥971 million loss on disposal of non-current assets.

• Total assets as of September 30, 2024, were ¥269,093 million, with a net worth ratio of 77.8%.

• Net assets stood at ¥210,470 million at the end of the period.

Segment performance

• Commodity Chemicals: Net sales up 9.4% and operating income up 50.2% year-over-year for 1-3Q FY2024, driven by higher sales volume and revised prices.

• Polymer & Oligomer: Net sales up 4.2% and operating income up 40% year-over-year, with growth in automotive and display-related products.

• Adhesive Material: Net sales up 13.1% and operating income turned positive, supported by increased sales in Japan, the US, and for automotive batteries.

• Performance Chemicals: Net sales up 0.7% but operating income down 22.4% year-over-year, with growth in inorganic functional materials offset by fewer medical care product test samples.

• Plastics: Net sales slightly down 0.3% but operating income up 2.9%, with higher sales of automotive and home appliance parts offsetting declines in piping equipment.