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Earnings presentation4078Sakai Chemical Industry Co.,Ltd.Materials and Chemicals

Supplementary Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027

For the first half of the fiscal year ending March 2027, higher revenue and profit year on year, along with results above the initial plan, were achieved by offsetting the impact of ending the pigment-grade titanium dioxide business with electronic materials and other businesses. Accordingly, the full-year plan was revised upward to revenue of ¥85.0 billion, operating profit of ¥6.5 billion and net income of ¥4.6 billion.

Worth reading
76Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
3300
¥ million (increase from the initial full-year revenue plan)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales43,000 million yen+6.6%
Operating profit3,489 million yen+6.3%
Ordinary income3,572 million yen+9.3%
Net income2,522 million yen-13.8%
Operating profit margin8.1%; year-on-year change in percentage points: Not disclosed
Results for the three months of the current quarter
Net Sales
21,534 million yen
Operating profit
1,784 million yen
Quarterly results by segment availableYes
Full-year earnings forecast
Net Sales
85,000 million yen
Operating profit
6,500 million yen
Ordinary income
6,500 million yen
Profit attributable to owners of the parent
4,600 million yen
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Electronic Materials
Net Sales55.5
Operating profit47.5
Cosmetic materials
Net Sales52.4
Organic chemicals
Net Sales50
Operating profit52.5
Hygiene Materials
Net Sales60.1
Operating profit65
Contract manufacturing
Net Sales51.4
Operating profit60.9
Titanium Oxide and Zinc Products
Net Sales53.5
Operating profit335
Resin additives
Net Sales52.7
Operating profit58.3
Catalysts
Net Sales39.5
Operating profit26.4
Inorganic Materials
Net Sales57.1
Operating profit73
Healthcare Business
Net Sales50
Revenue from new businesses50.6
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress above plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Year-on-year operating profit
Selling price variance3,775
Sales volume variance286
Raw material and fuel price variance-3,643
Personnel and contract labor cost variance-96
Depreciation expense variance-18
Repairs and maintenance expense variance-34
Other-65
Operating profit versus initial plan
Selling price variance1,083
Sales volume variance140
Raw material and fuel price variance-1,024
Personnel and contract labor cost variance153
Depreciation expense variance28
Repairs and maintenance expense variance46
Other-37
Structural Reform Costs-420
Temporary product valuation loss on electronic materials-141
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Strong semiconductor market conditions, higher domestic zinc benchmark prices, a sluggish Chinese economy, and demand for AI data centers and automotive applications. Numerical assumptions are not disclosed.
New initiatives
  • Acquisition of ¥6.0 billion of treasury shares, or 1.52 million shares, and cancellation of the acquired shares
  • Securing approximately ¥2.0 billion in standby funds for M&A through the exercise of stock acquisition rights
  • Consideration of M&A focused on growth businesses
  • Structural reform of the medical business
Key KPIsA metric the company considers important as a management benchmark.
  • EPS¥161.25 /share
  • Equity ratio65.7 %
  • CCC164 Days
  • FCF3,409 million yen
    Year on year against the same period last year+8.3%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Analysis of the factors behind differences in sales volume and selling prices is provided, but quantitative indicators such as customer numbers and average spend per customer are not disclosed
Segment results
Electronic Materials
Net Sales6,377
Operating profit1,141
Year on year against the same period last year
Net Sales9.1
Operating profit12.5
Cosmetic materials
Net Sales1,047
Operating profit-244
Year on year against the same period last year
Net Sales50.7
Organic chemicals
Net Sales4,002
Operating profit525
Year on year against the same period last year
Net Sales4.9
Operating profit4.7
Hygiene Materials
Net Sales3,127
Operating profit260
Year on year against the same period last year
Net Sales21.7
Operating profit43.9
Contract manufacturing
Net Sales3,646
Operating profit548
Year on year against the same period last year
Net Sales10.8
Operating profit55.8
Titanium Oxide and Zinc Products
Net Sales3,639
Operating profit335
Year on year against the same period last year
Net Sales-29.2
Operating profit-49
Resin additives
Net Sales6,217
Operating profit699
Year on year against the same period last year
Net Sales6.8
Operating profit34.5
Catalysts
Net Sales1,579
Operating profit185
Year on year against the same period last year
Net Sales29.4
Operating profit23.5
Inorganic Materials
Net Sales2,911
Operating profit511
Year on year against the same period last year
Net Sales10.6
Operating profit4
Healthcare Business
Net Sales4,352
Operating profit15
Year on year against the same period last year
Net Sales-0.1
Operating profit-79
Other
Operating profit811
Year on year against the same period last year
Operating profit11.9
Medium-term management plan targets
CCC180 days or less
Working capital reduction¥7.0 billion cumulative over 3 years (fiscal year ending March 2027)
Actual results
CCC164 days
Working capital reduction¥10.1 billion vs. FY2024
Financial targets
ROEWorking toward achieving 8%
Equity ratio
Actual results65.7 %
Number of employees
Consolidated1,942 people
Non-consolidated769 people
Record date31 March 2026
Capital expenditures
¥5,400 millions plan for the fiscal year ending March 2027
Annual Dividend
Annual¥160 /share
Interim¥80 /share
End of period¥80 /share
Acquisition of treasury shares
60 Hundreds of millions of yen
Number of Shares1,520,000
Unit (shares)Shares
DesignationCompleted; the acquired shares are scheduled to be cancelled
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales43,000 million yen (YoY +6.6%)
Operating profit3,489 million yen (YoY +6.3%)
Ordinary income3,572 million yen (YoY +9.3%)
Net income2,522 million yen (YoY -13.8%)
Operating profit margin8.1%; year-on-year change in percentage points: Not disclosed
Results for the three months of the current quarterNet Sales 21,534 million yen / Operating profit 1,784 million yen / Quarterly results by segment available Yes
Full-year earnings forecastNet Sales 85,000 million yen / Operating profit 6,500 million yen / Ordinary income 6,500 million yen / Profit attributable to owners of the parent 4,600 million yen
Progress against full-year forecastElectronic Materials Net Sales 55.5 / Operating profit 47.5 / Cosmetic materials Net Sales 52.4 / Organic chemicals Net Sales 50 / Operating profit 52.5 / Hygiene Materials Net Sales 60.1 / Operating profit 65 / Contract manufacturing Net Sales 51.4 / Operating profit 60.9 / Titanium Oxide and Zinc Products Net Sales 53.5 / Operating profit 335 / Resin additives Net Sales 52.7 / Operating profit 58.3 / Catalysts Net Sales 39.5 / Operating profit 26.4 / Inorganic Materials Net Sales 57.1 / Operating profit 73 / Healthcare Business Net Sales 50 / Revenue from new businesses 50.6
Self-assessment against the planProgress above plan
Segment resultsElectronic Materials Net Sales 6,377 / Operating profit 1,141 / Year on year against the same period last year Net Sales 9.1 / Operating profit 12.5 / Cosmetic materials Net Sales 1,047 / Operating profit -244 / Year on year against the same period last year Net Sales 50.7 / Operating profit Not disclosed / Organic chemicals Net Sales 4,002 / Operating profit 525 / Year on year against the same period last year Net Sales 4.9 / Operating profit 4.7 / Hygiene Materials Net Sales 3,127 / Operating profit 260 / Year on year against the same period last year Net Sales 21.7 / Operating profit 43.9 / Contract manufacturing Net Sales 3,646 / Operating profit 548 / Year on year against the same period last year Net Sales 10.8 / Operating profit 55.8 / Titanium Oxide and Zinc Products Net Sales 3,639 / Operating profit 335 / Year on year against the same period last year Net Sales -29.2 / Operating profit -49 / Resin additives Net Sales 6,217 / Operating profit 699 / Year on year against the same period last year Net Sales 6.8 / Operating profit 34.5 / Catalysts Net Sales 1,579 / Operating profit 185 / Year on year against the same period last year Net Sales 29.4 / Operating profit 23.5 / Inorganic Materials Net Sales 2,911 / Operating profit 511 / Year on year against the same period last year Net Sales 10.6 / Operating profit 4 / Healthcare Business Net Sales 4,352 / Operating profit 15 / Year on year against the same period last year Net Sales -0.1 / Operating profit -79 / Other Operating profit 811 / Year on year against the same period last year Operating profit 11.9
Breakdown of Factors Affecting the ChangeYear-on-year operating profit Selling price variance 3,775 / Sales volume variance 286 / Raw material and fuel price variance -3,643 / Personnel and contract labor cost variance -96 / Depreciation expense variance -18 / Repairs and maintenance expense variance -34 / Other -65 / Operating profit versus initial plan Selling price variance 1,083 / Sales volume variance 140 / Raw material and fuel price variance -1,024 / Personnel and contract labor cost variance 153 / Depreciation expense variance 28 / Repairs and maintenance expense variance 46 / Other -37 / Structural Reform Costs -420 / Temporary product valuation loss on electronic materials -141
Key KPIsIndicator name EPS / Value ¥161.25 /share / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 65.7 % / Year on year against the same period last year Not disclosed, Indicator name CCC / Value 164 Days / Year on year against the same period last year Not disclosed, Indicator name FCF / Value 3,409 million yen / Year on year against the same period last year 8.3 million yen
Unit price and quantity metricsAnalysis of the factors behind differences in sales volume and selling prices is provided, but quantitative indicators such as customer numbers and average spend per customer are not disclosed
Number of employeesConsolidated 1,942 people / Non-consolidated 769 people / Record date 31 March 2026
Assumptions Underlying the Business OutlookStrong semiconductor market conditions, higher domestic zinc benchmark prices, a sluggish Chinese economy, and demand for AI data centers and automotive applications. Numerical assumptions are not disclosed.
Medium-term management plan targetsCCC 180 days or less / Working capital reduction ¥7.0 billion cumulative over 3 years (fiscal year ending March 2027) / Actual results CCC 164 days / Working capital reduction ¥10.1 billion vs. FY2024
Financial targetsROE Working toward achieving 8% / Equity ratio Actual results 65.7 %
Annual DividendAnnual ¥160 /share / Interim ¥80 /share / End of period ¥80 /share
Acquisition of treasury sharesAmount 60 Hundreds of millions of yen / Number of Shares 1,520,000 Hundreds of millions of yen / Unit (shares) Shares / Designation Completed; the acquired shares are scheduled to be cancelled
Capital expenditures¥5,400 millions (plan for the fiscal year ending March 2027)
New initiativesAcquisition of ¥6.0 billion of treasury shares, or 1.52 million shares, and cancellation of the acquired shares, Securing approximately ¥2.0 billion in standby funds for M&A through the exercise of stock acquisition rights, Consideration of M&A focused on growth businesses, Structural reform of the medical business
Items this document does not state (8)
Gross Profit MarginSelling, general and administrative expensesNumber of stores and locationsRisk 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 revision reflects progress above plan in the first half. Demand for electronic materials for AI data centers and automotive applications, new projects and cost reductions in hygiene materials, high-value-added contract processing, and higher zinc benchmark prices contributed, while the end of the pigment-grade titanium dioxide business and the impact of lower medical product prices and higher raw material and fuel costs weighed on results.

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Supplementary Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | Sakai Chemical Industry Co.,Ltd. (4078) timely disclosure | Komori