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Financial Results Presentation4116Dainichiseika Color & Chemicals Mfg.Co.,Ltd.Materials and Chemicals

Supplementary Financial Results Information for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue declined slightly, while operating profit increased due to price adjustments and a shift toward higher-value-added products. For the fiscal year ending March 2027, the company expects higher revenue and operating profit, but forecasts a decline in net income. The impact of the situation in the Middle East and business structural reforms has not been incorporated into the earnings forecast.

Worth reading
73In focus
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
6
¥100 million (year-on-year increase in operating income)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 2026, full year11 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,242 Hundreds of millions of yen-0.4%
Operating profit76 Hundreds of millions of yen+8.6%
Ordinary income84 Hundreds of millions of yen+9.4%
Net income81 Hundreds of millions of yen-21.3%
Results for the three months of the current quarterThe quarterly trend chart shows revenue and operating profit for each quarter. Standalone three-month results in tabular form: not disclosed
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
1,266 Hundreds of millions of yen
Operating profit
84 Hundreds of millions of yen
Ordinary income
95 Hundreds of millions of yen
Profit attributable to owners of the parent
66 Hundreds of millions of yen
EBITDA
137 Hundreds of millions of 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。
Fiscal year ending March 2026
Net Sales101.1%
Operating profit100.1%
Ordinary income99.9%
Profit attributable to owners of the parent108.0%
EBITDA100.3%
Color & Functional Products revenue101.7%
Polymer & Coating Materials revenue101.0%
Graphic & Printing Materials revenue100.2%
Color & Functional Products operating profit103.5%
Polymer & Coating Materials operating profit99.5%
Graphic & Printing Materials operating profit106.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Achieved the initial plan for the second year of the medium-term management plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Operating profit, fiscal year ended March 2026
Operating profit in the previous fiscal year70
Sales price revisions15
Other factors contributing to the increase12
Other factors contributing to the decrease-6
Raw material prices, etc.-9
Overseas subsidiaries, etc.-6
Other0
Operating profit for the period76
Operating profit for the fiscal year ending March 2027
Operating profit in the previous fiscal year76
Factors behind the increase19
Factors reducing profit-7
Factors contributing to the decrease 2-6
Other factors contributing to the increase3
Other factors contributing to the decrease-1
Forecast operating profit84
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Exchange rate¥148.00/USD
Middle East situationNot reflected because the impact cannot be reasonably quantified
Impact of business structural reformsTo be determined
New initiatives
  • Company-wide business structural reforms, including a review of the business portfolio
  • Improving the efficiency of domestic production, sales and administrative operations, and reorganizing business locations
  • Transition to a company with an Audit and Supervisory Committee
  • Introduction of a new executive officer system and chief officer system
  • Introduction of personnel evaluation and compensation systems
  • Grant of restricted stock to the employee stock ownership plan
  • Use of generative AI and no-code tools
  • Sale of cross-shareholdings
  • Stock split (one share split into 4 shares)
  • Selection of target areas for strategic investments and M&A
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA127 Hundreds of millions of yen
    Year on year against the same period last year+6.8%
  • Overseas revenue ratio25.7 %
    Year-on-year change (percentage points)-1.4
  • ROA4.2 %
    Year-on-year change (percentage points)0.2
  • ROE6.1 %
    Year-on-year change (percentage points)-2.3
  • Equity ratio67.5 %
    Year-on-year change (percentage points)2.5
  • Debt-to-equity ratio0.13 times
    Year on year against the same period last year-0.0%
  • Net income per share¥118.32
    Year on year against the same period last year-31.6%
  • Exchange rate¥150.2 /$
    Year on year against the same period last year¥2.16 stronger against the dollar year on year
  • Naphtha prices¥65,200
    Year on year against the same period last year-10,425.0%
Segment results
Color & Functional Products
Net Sales
690 Hundreds of millions of yen
Revenue_yoy_pct2.6
Operating profit
41 Hundreds of millions of yen
Operating profit_yoy_pct32.1
Polymer & Coating Materials
Net Sales
241 Hundreds of millions of yen
Revenue_yoy_pct-4.8
Operating profit
25 Hundreds of millions of yen
Operating profit_yoy_pct-17.7
Graphic & Printing Materials
Net Sales
310 Hundreds of millions of yen
Revenue_yoy_pct-3
Operating profit
8 Hundreds of millions of yen
Operating profit_yoy_pct19.1
Medium-term management plan targets
Fiscal year ending March 2027ROE of at least 5%; average total payout ratio of at least 50% over the three-year period
Medium- to Long-Term OutlookROE of at least 9%; PBR of at least 1x
Financial targets
ROE
Actual results for the fiscal year ending March 20266.1%
Target for the fiscal year ending March 20275% or more
Medium- to Long-Term Targets9% or more
Equity ratio
Actual results for the fiscal year ending March 202667.5%
Debt-to-equity ratio
Actual results for the fiscal year ending March 20260.13x
Cost of shareholders’ equity6.8～7.8%
Annual Dividend
Fiscal year ending March 2026
Annual dividend per share¥220
Interim¥87
End of period¥133
Forecast for the fiscal year ending March 2027
Annual dividend per share¥55 (after the stock split; ¥220 on a pre-split basis)
Interim¥21.75 (¥87 on a pre-split basis)
End of period¥33.25 (¥133 on a pre-split basis)
Payout ratio
Fiscal year ending March 202646.5% (including the special dividend)
Forecast for the fiscal year ending March 202749.1% (excluding the special dividend); 56.9% (including the special dividend)
Total payout ratioAt least 50% on a three-year average basis under the medium-term management plan
Acquisition of treasury shares
Fiscal year ending March 2026¥1.1 billion, 315,300 shares, 1.81% of shares outstanding
PolicyTo be conducted flexibly
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026, full year
Net Sales1,242 Hundreds of millions of yen (YoY -0.4%)
Operating profit76 Hundreds of millions of yen (YoY +8.6%)
Ordinary income84 Hundreds of millions of yen (YoY +9.4%)
Net income81 Hundreds of millions of yen (YoY -21.3%)
Results for the three months of the current quarterThe quarterly trend chart shows revenue and operating profit for each quarter. Standalone three-month results in tabular form: not disclosed
Full-year earnings forecastFiscal year ending March 2027 Net Sales 1,266 Hundreds of millions of yen / Operating profit 84 Hundreds of millions of yen / Ordinary income 95 Hundreds of millions of yen / Profit attributable to owners of the parent 66 Hundreds of millions of yen / EBITDA 137 Hundreds of millions of yen
Progress against full-year forecastFiscal year ending March 2026 Net Sales 101.1% / Operating profit 100.1% / Ordinary income 99.9% / Profit attributable to owners of the parent 108.0% / EBITDA 100.3% / Color & Functional Products revenue 101.7% / Polymer & Coating Materials revenue 101.0% / Graphic & Printing Materials revenue 100.2% / Color & Functional Products operating profit 103.5% / Polymer & Coating Materials operating profit 99.5% / Graphic & Printing Materials operating profit 106.7%
Self-assessment against the planAchieved the initial plan for the second year of the medium-term management plan
Segment resultsColor & Functional Products Net Sales 690 Hundreds of millions of yen / Revenue_yoy_pct 2.6 / Operating profit 41 Hundreds of millions of yen / Operating profit_yoy_pct 32.1 / Polymer & Coating Materials Net Sales 241 Hundreds of millions of yen / Revenue_yoy_pct -4.8 / Operating profit 25 Hundreds of millions of yen / Operating profit_yoy_pct -17.7 / Graphic & Printing Materials Net Sales 310 Hundreds of millions of yen / Revenue_yoy_pct -3 / Operating profit 8 Hundreds of millions of yen / Operating profit_yoy_pct 19.1
Breakdown of Factors Affecting the ChangeOperating profit, fiscal year ended March 2026 Operating profit in the previous fiscal year 70 / Sales price revisions 15 / Other factors contributing to the increase 12 / Other factors contributing to the decrease -6 / Raw material prices, etc. -9 / Overseas subsidiaries, etc. -6 / Other 0 / Operating profit for the period 76 / Operating profit for the fiscal year ending March 2027 Operating profit in the previous fiscal year 76 / Factors behind the increase 19 / Factors reducing profit -7 / Factors contributing to the decrease 2 -6 / Other factors contributing to the increase 3 / Other factors contributing to the decrease -1 / Forecast operating profit 84
Key KPIsIndicator name EBITDA / Value 127 Hundreds of millions of yen / Year on year against the same period last year 6.8 Hundreds of millions of yen, Indicator name Overseas revenue ratio / Value 25.7 % / Year-on-year change (percentage points) -1.4 %, Indicator name ROA / Value 4.2 % / Year-on-year change (percentage points) 0.2 %, Indicator name ROE / Value 6.1 % / Year-on-year change (percentage points) -2.3 %, Indicator name Equity ratio / Value 67.5 % / Year-on-year change (percentage points) 2.5 %, Indicator name Debt-to-equity ratio / Value 0.13 times / Year on year against the same period last year -0.03 times, Indicator name Net income per share / Value ¥118.32 / Year on year against the same period last year ¥-31.59, Indicator name Exchange rate / Value ¥150.2 /$ / Year on year against the same period last year ¥2.16 stronger against the dollar year on year, Indicator name Naphtha prices / Value ¥65,200 / Year on year against the same period last year ¥-10,425
Assumptions Underlying the Business OutlookExchange rate ¥148.00/USD / Middle East situation Not reflected because the impact cannot be reasonably quantified / Impact of business structural reforms To be determined
Medium-term management plan targetsFiscal year ending March 2027 ROE of at least 5%; average total payout ratio of at least 50% over the three-year period / Medium- to Long-Term Outlook ROE of at least 9%; PBR of at least 1x
Financial targetsROE Actual results for the fiscal year ending March 2026 6.1% / Target for the fiscal year ending March 2027 5% or more / Medium- to Long-Term Targets 9% or more / Equity ratio Actual results for the fiscal year ending March 2026 67.5% / Debt-to-equity ratio Actual results for the fiscal year ending March 2026 0.13x / Cost of shareholders’ equity 6.8～7.8%
Annual DividendFiscal year ending March 2026 Annual dividend per share ¥220 / Interim ¥87 / End of period ¥133 / Forecast for the fiscal year ending March 2027 Annual dividend per share ¥55 (after the stock split; ¥220 on a pre-split basis) / Interim ¥21.75 (¥87 on a pre-split basis) / End of period ¥33.25 (¥133 on a pre-split basis)
Payout ratioFiscal year ending March 2026 46.5% (including the special dividend) / Forecast for the fiscal year ending March 2027 49.1% (excluding the special dividend); 56.9% (including the special dividend) / Total payout ratio At least 50% on a three-year average basis under the medium-term management plan
Acquisition of treasury sharesFiscal year ending March 2026 ¥1.1 billion, 315,300 shares, 1.81% of shares outstanding / Policy To be conducted flexibly
New initiativesCompany-wide business structural reforms, including a review of the business portfolio, Improving the efficiency of domestic production, sales and administrative operations, and reorganizing business locations, Transition to a company with an Audit and Supervisory Committee, Introduction of a new executive officer system and chief officer system, Introduction of personnel evaluation and compensation systems, Grant of restricted stock to the employee stock ownership plan, Use of generative AI and no-code tools, Sale of cross-shareholdings, Stock split (one share split into 4 shares), Selection of target areas for strategic investments and M&A
Items this document does not state (11)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookCapital expendituresOrders 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.

Automotive compounds and colorants, as well as pigments for liquid-crystal displays, performed steadily or strongly, while urethane resins remained sluggish due to weak performance of the vehicle models in which they were adopted. Despite persistently high raw material prices and lower profits at overseas subsidiaries, operating profit increased as a result of price adjustments and a shift toward higher-value-added products.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Supplementary Financial Results Information for the Fiscal Year Ending March 2026 | Dainichiseika Color & Chemicals Mfg.Co.,Ltd. (4116) timely disclosure | Komori