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Revision of earnings forecasts4078Sakai Chemical Industry Co.,Ltd.Materials and Chemicals

Notice Regarding Differences Between Individual Financial Results and Results for the Previous Fiscal Year

For the full-year individual results for the fiscal year ending March 2026, net sales were below the previous fiscal year, while operating profit and ordinary profit were higher. Net income declined substantially due to the recognition of an impairment loss and the reversal of the previous fiscal year's extraordinary gain.

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-5437
million yen
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Revised forecast

Fiscal year ending March 2026 · Full year (1 April 2025 to 31 March 2026)
Net Sales—→—million yen
-6.1%
Operating profit—→—million yen
+5.9%
Ordinary income—→—million yen
+15.9%
Profit attributable to owners of the parent—→—million yen
-87.2%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document.

Reason for the revision

Net sales were below the previous fiscal year's results due to the termination of the pigment-grade titanium dioxide business and the impact of the slowdown of the Chinese economy and other factors in the cosmetics materials segment. Although the electronic materials segment and other businesses remained firm, resulting in operating profit and ordinary profit exceeding the previous fiscal year's results, net income declined because an impairment loss of ¥2,967 million on cosmetics materials manufacturing equipment was recorded as an extraordinary loss and the previous fiscal year's ¥2,371 million gain on the elimination of shares held in a merger was reversed.

Details and amount of extraordinary loss

Impairment loss on cosmetics materials manufacturing equipment: ¥2,967 million

Previous-period resultsNet sales: ¥44,342 million; operating profit: ¥2,655 million; ordinary profit: ¥3,405 million; net income: ¥6,235 million; net income per share: ¥384.56
Consolidated / non-consolidatedNon-consolidated
Revised forecast
ItemDetails
Net Sales-2,708
Operating profit155
Ordinary income541
Profit attributable to owners of the parent-5,437
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year (1 April 2025 to 31 March 2026)
Previous-period resultsNet sales: ¥44,342 million; operating profit: ¥2,655 million; ordinary profit: ¥3,405 million; net income: ¥6,235 million; net income per share: ¥384.56
Reason for the revisionNet sales were below the previous fiscal year's results due to the termination of the pigment-grade titanium dioxide business and the impact of the slowdown of the Chinese economy and other factors in the cosmetics materials segment. Although the electronic materials segment and other businesses remained firm, resulting in operating profit and ordinary profit exceeding the previous fiscal year's results, net income declined because an impairment loss of ¥2,967 million on cosmetics materials manufacturing equipment was recorded as an extraordinary loss and the previous fiscal year's ¥2,371 million gain on the elimination of shares held in a merger was reversed.
Details and amount of extraordinary lossImpairment loss on cosmetics materials manufacturing equipment: ¥2,967 million
Consolidated / non-consolidatedNon-consolidated
Items this document does not state (3)
Net income per sharePublication date of previous forecastDividend forecast revision

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Net sales declined due to the termination of the pigment-grade titanium dioxide business and the slowdown of the Chinese economy and other factors in the cosmetics materials segment. Operating profit and ordinary profit increased as the electronic materials segment and other businesses remained firm, but net income declined due to an impairment loss of ¥2,967 million on cosmetics materials manufacturing equipment and the reversal of the ¥2,371 million gain on the elimination of shares held in a merger recognized in the previous fiscal year.

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Notice Regarding Differences Between Individual Financial Results and Results for the Previous Fiscal Year | Sakai Chemical Industry Co.,Ltd. (4078) timely disclosure | Komori