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Financial results presentation4078Sakai Chemical Industry Co.,Ltd.Materials and Chemicals

Full-Year Results Briefing Slides for the Fiscal Year Ending March 2026

In the fiscal year ended March 2026, revenue declined 3.5% year on year, mainly due to lower sales volumes, while operating profit increased 5.9%. Net income attributable to owners of the parent fell 45.1% due to impairment losses on facilities for cosmetic materials and extraordinary losses. For the fiscal year ending March 2027, the company expects lower operating profit but higher net income.

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Contents of this document

Financial results presentationFiscal year ending March 2026, full-year results10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥81,447 million-3.5%
Operating profit¥6,452 million+5.9%
Ordinary income¥6,545 million+4.2%
Net income¥2,752 million-45.1%
Operating profit margin7.9%, up 0.7 percentage points year on year (7.2% → 7.9%)
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥81,700 million
Operating profit
¥6,000 million
Ordinary income
¥6,100 million
Profit attributable to owners of the parent
¥4,400 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit was broadly in line with plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Impairment losses and other charges related to the multipurpose plant for cosmetic materials¥-2,982 million
  • Difference between the initial plan and the operating profit plan for growth businesses for the fiscal year ending March 2027¥-3,500 million
  • Difference for stable businesses¥100 million
  • Difference for the healthcare business¥-400 million
  • Difference for other businesses¥800 million
New initiatives
  • Considering capital investment to increase production of high-end electronic materials
  • Expanding sales of new cosmetic materials, promoting products, and proposing hybrid formulations
  • Strengthening the production structure for organic chemicals and enhancing the CDMO structure
  • Continuing proactive investment, including M&A, in growth businesses
  • Expanding sales of the Lumate, Muthiol, and SZR series and strengthening mass-production capabilities
Key KPIsA metric the company considers important as a management benchmark.
  • ROE3.5 ％
  • CCC178 days
    Year on year against the same period last yearReduced by 38 days versus FY2024/3
  • Working capital403 Hundreds of millions of yen
    Year on year against the same period last yearReduced by ¥8.9 billion versus FY2024/3
  • Operating cash flow (cumulative for 2 years)89 Hundreds of millions of yen
  • Third-party employee engagement assessment score64.4 Points
    Year on year against the same period last yearImproved by 1.0 point year on year
  • Reduction rate of Scope 1 and 2 CO2 emissions31 ％
  • Number of Smart Material-certified products3 Products
Segment results
  • BusinessElectronic Materials
    Net Sales
    ¥11,377 million
    Operating profit
    ¥1,816 million
  • BusinessCosmetic materials
    Net Sales
    ¥1,720 million
    Operating profit
    ¥-437 million
  • BusinessOrganic chemicals
    Net Sales
    ¥7,185 million
    Operating profit
    ¥721 million
Medium-term management plan targets
  • Operating profit for the fiscal year ending March 2027
    Target value90
    Actuals and plan¥6.0 billion plan for the fiscal year ending March 2027
  • ROE
    Target value8
    Target fiscal yearFiscal year ending March 2027
    Actuals and plan3.5% for the fiscal year ended March 2026
  • Revenue in FY2030
    Target value20
  • Profit margin on revenue in FY2030
    Target value50
  • Certified products and services in FY2030
    Target value5
Financial targets
  • ROE
    Target value8
    Actual value3.5
    Fiscal year of actual resultsFiscal year ending March 2026
  • ROE
    Target value12
    Target fiscal year2030
Capital expenditures
¥130 hundred million actuals for year 2; ¥20.0 billion three-year plan
Annual Dividend
Annual dividend per share¥145
Acquisition of treasury shares
25 Hundreds of millions of yen
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredFiscal year ending March 2026, full-year results
Net Sales¥81,447 million (YoY -3.5%)
Operating profit¥6,452 million (YoY +5.9%)
Ordinary income¥6,545 million (YoY +4.2%)
Net income¥2,752 million (YoY -45.1%)
Operating profit margin7.9%, up 0.7 percentage points year on year (7.2% → 7.9%)
Full-year earnings forecastSubject Fiscal year ending March 2027 / Net Sales ¥81,700 million / Operating profit ¥6,000 million / Ordinary income ¥6,100 million / Profit attributable to owners of the parent ¥4,400 million
Self-assessment against the planOperating profit was broadly in line with plan
Segment resultsBusiness Electronic Materials / Net Sales ¥11,377 million / Operating profit ¥1,816 million / Year on year against the same period last year Not disclosed, Business Cosmetic materials / Net Sales ¥1,720 million / Operating profit ¥-437 million / Year on year against the same period last year Not disclosed, Business Organic chemicals / Net Sales ¥7,185 million / Operating profit ¥721 million / Year on year against the same period last year Not disclosed
Breakdown of Factors Affecting the ChangeFactors Impairment losses and other charges related to the multipurpose plant for cosmetic materials / Amount ¥-2,982 million, Factors Difference between the initial plan and the operating profit plan for growth businesses for the fiscal year ending March 2027 / Amount ¥-3,500 million, Factors Difference for stable businesses / Amount ¥100 million, Factors Difference for the healthcare business / Amount ¥-400 million, Factors Difference for other businesses / Amount ¥800 million
Key KPIsIndicator name ROE / Value 3.5 ％ / Year on year against the same period last year Not disclosed, Indicator name CCC / Value 178 days / Year on year against the same period last year Reduced by 38 days versus FY2024/3, Indicator name Working capital / Value 403 Hundreds of millions of yen / Year on year against the same period last year Reduced by ¥8.9 billion versus FY2024/3, Indicator name Operating cash flow (cumulative for 2 years) / Value 89 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Third-party employee engagement assessment score / Value 64.4 Points / Year on year against the same period last year Improved by 1.0 point year on year, Indicator name Reduction rate of Scope 1 and 2 CO2 emissions / Value 31 ％ / Year on year against the same period last year Not disclosed, Indicator name Number of Smart Material-certified products / Value 3 Products / Year on year against the same period last year Not disclosed
Medium-term management plan targetsIndicator Operating profit for the fiscal year ending March 2027 / Target value 90 Hundreds of millions of yen / Actuals and plan ¥6.0 billion plan for the fiscal year ending March 2027, Indicator ROE / Target value 8 ％ / Target fiscal year Fiscal year ending March 2027 / Actuals and plan 3.5% for the fiscal year ended March 2026, Indicator Revenue in FY2030 / Target value 20 Hundreds of millions of yen, Indicator Profit margin on revenue in FY2030 / Target value 50 ％, Indicator Certified products and services in FY2030 / Target value 5 Cases or more
Financial targetsIndicator ROE / Target value 8 ％ / Actual value 3.5 ％ / Fiscal year of actual results Fiscal year ending March 2026, Indicator ROE / Target value 12 ％ / Target fiscal year 2030 ％
Annual DividendAnnual dividend per share ¥145 / Interim Not disclosed / End of period Not disclosed
Acquisition of treasury sharesAmount 25 Hundreds of millions of yen / Number of Shares Not disclosed / Period Not disclosed
Capital expenditures¥130 hundred million (actuals for year 2; ¥20.0 billion three-year plan)
New initiativesConsidering capital investment to increase production of high-end electronic materials, Expanding sales of new cosmetic materials, promoting products, and proposing hybrid formulations, Strengthening the production structure for organic chemicals and enhancing the CDMO structure, Continuing proactive investment, including M&A, in growth businesses, Expanding sales of the Lumate, Muthiol, and SZR series and strengthening mass-production capabilities
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookPayout ratioOrders received and order backlogMarket Size / ShareKey points of the Q&A

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.

The decline in revenue was due to lower sales volumes, mainly in the businesses under consideration for efficiency improvements, weak sales of cosmetic materials, and the carryover into the following fiscal year of some sales associated with the discontinuation of the pigment-grade titanium dioxide business. Operating profit was supported by stable businesses, businesses under consideration for efficiency improvements, and other businesses, which offset the shortfall in growth businesses. Price revisions and an improved sales mix also contributed. Net income was affected by impairment losses and other charges of ¥2,982 million related to the multipurpose plant for cosmetic materials, as well as extraordinary losses recorded under the special career transition support program.

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Full-Year Results Briefing Slides for the Fiscal Year Ending March 2026 | Sakai Chemical Industry Co.,Ltd. (4078) timely disclosure | Komori