Kanto Denka Kogyo (4047) Q3 2025 earnings summary

Executive summary

• Net sales for Q1–Q3 FY2024 were ¥46,621 million, down 5.0% year-over-year, mainly due to declines in Fine Chemicals and Fundamental Chemicals divisions.

• Operating profit improved to ¥2,606 million from a loss of ¥611 million, and ordinary profit rose sharply to ¥3,081 million from ¥24 million year-over-year.

• Profit attributable to owners increased to ¥1,869 million from ¥226 million year-over-year.

• Specialty gases sales volume increased due to higher semiconductor manufacturer activity, while battery materials sales volume and unit price declined amid a slowdown in EV market growth.

• Cost of sales remained high due to inventory balances affected by raw material price surges and inventory valuation losses.

Financial highlights

• Operating profit rose by ¥3.2 billion year-over-year, reaching ¥2,606 million.

• Ordinary profit increased to ¥3,081 million from break-even.

• Basic EPS surged to ¥32.53 from ¥3.94 year-over-year.

• Loss on valuation of inventories decreased significantly from ¥2.9 billion to ¥0.9 billion.

• Total assets as of December 31, 2024, were ¥125,887 million, up ¥584 million from March 31, 2024.

Outlook and guidance

• Full-year net sales forecast is ¥63,400 million, down 2.1% year-over-year.

• Operating profit is projected at ¥3,800 million, ordinary profit at ¥4,400 million, and profit attributable to owners of parent at ¥2,850 million.

• Basic earnings per share for the full year is forecast at ¥49.60.

• Dividend forecast for the year is ¥16.00 per share, up from ¥14.00 in the previous year.