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Earnings presentation4116Dainichiseika Color & Chemicals Mfg.Co.,Ltd.Materials and Chemicals

Supplementary Explanatory Materials for the Second Quarter (Interim Period) Financial Results for the Fiscal Year Ending March 2027

For the interim period, revenue and operating profit both exceeded the year-earlier levels, as high-value-added products and the effects of price revisions contributed domestically and overseas. The full-year forecast was revised upward to revenue of ¥134.9 billion and operating profit of ¥13.3 billion, incorporating higher sales and profitability improvement measures.

Worth reading
64In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
68
¥100 million (year-on-year increase in net sales)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary Materials to the Earnings ReportFiscal year ending March 2027, second quarter (first half)8 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥685 100 million+11.1%
Operating profit¥70 100 million+72.5%
Ordinary income¥75 100 million+67.9%
Net income¥55 100 million+48.4%
Results for the three months of the current quarter
Net Sales
¥340 100 million
Operating profit
¥32 100 million
Full-year earnings forecast
Net Sales
¥1,349 100 million
Operating profit
¥133 100 million
Ordinary income
¥141 100 million
Net income
¥92 100 million
EBITDA
¥186 100 million
Earnings per share
140.54 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。
Color & Functional Products
Net Sales102.5
Operating profit100.4
Polymer & Coating Materials
Net Sales98.1
Operating profit95.5
Graphic & Printing Materials
Net Sales99.5
Operating profit109.9
Consolidated
Net Sales100.9
Operating profit101.1
Ordinary income101.9
Net income107.4
EBITDA100.6
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Sales volume, product mix and other factors+¥700 million
  • Price revisions and other factors+¥3.4 billion
  • Raw material prices, etc.-¥2.7 billion
  • Other factor 1+¥100 million
  • Other factor 2+¥1.2 billion
  • Other factor 3+¥200 million
  • Other factor 4+¥0.0 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Exchange rate¥1 = $0.006303, or $1 = ¥158.67
  • Naphtha prices¥65,200
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥97 100 million
    Year on year against the same period last year+46.5%
  • Overseas revenue ratio25.8 %
    Year on year against the same period last year+0.6pt
  • Interim net income per share82.4 Yen
    Year on year against the same period last year+¥27.58
Segment results
  • Color & Functional Products
    Net Sales¥379 100 million (YoY +11.5%)
    Operating profit¥36 100 million (YoY +63.6%)
  • Polymer & Coating Materials
    Net Sales¥125 100 million (YoY +3.2%)
    Operating profit¥19 100 million (YoY +39.1%)
  • Graphic & Printing Materials
    Net Sales¥181 100 million (YoY +16.5%)
    Operating profit¥15 100 million (YoY +202.9%)
Medium-term management plan targets
  • TargetTotal payout ratio of at least 50% on a three-year average
    Target fiscal yearFiscal year ending March 2027
  • TargetPayout ratio of at least 40%, excluding special dividends
    Target fiscal yearFiscal year ending March 2027
Annual Dividend
Annual
55 Yen
Interim
27.5 Yen
End of period
27.5 Yen
Special dividend
Annual7.5 Yen
Payout ratio
Excluding special dividends33.8 %
Including special dividends39.1 %
Total payout ratioTargeting at least 50% on a three-year average under the medium-term management plan
Acquisition of treasury shares
Acquisition cost3,616 Million yen
PeriodThrough the second quarter (interim period) of the fiscal year ending March 2027
Contents of this document
ItemDetails
Document typeSupplementary Materials to the Earnings Report
Fiscal Period CoveredFiscal year ending March 2027, second quarter (first half)
Net Sales¥685 100 million (YoY +11.1%)
Operating profit¥70 100 million (YoY +72.5%)
Ordinary income¥75 100 million (YoY +67.9%)
Net income¥55 100 million (YoY +48.4%)
Results for the three months of the current quarterNet Sales ¥340 100 million / Operating profit ¥32 100 million
Full-year earnings forecastNet Sales ¥1,349 100 million / Operating profit ¥133 100 million / Ordinary income ¥141 100 million / Net income ¥92 100 million / EBITDA ¥186 100 million / Earnings per share 140.54 Yen
Progress against full-year forecastColor & Functional Products Net Sales 102.5 / Operating profit 100.4 / Polymer & Coating Materials Net Sales 98.1 / Operating profit 95.5 / Graphic & Printing Materials Net Sales 99.5 / Operating profit 109.9 / Consolidated Net Sales 100.9 / Operating profit 101.1 / Ordinary income 101.9 / Net income 107.4 / EBITDA 100.6
Segment resultsSegment Color & Functional Products / Net Sales ¥379 100 million (YoY +11.5%) / Operating profit ¥36 100 million (YoY +63.6%), Segment Polymer & Coating Materials / Net Sales ¥125 100 million (YoY +3.2%) / Operating profit ¥19 100 million (YoY +39.1%), Segment Graphic & Printing Materials / Net Sales ¥181 100 million (YoY +16.5%) / Operating profit ¥15 100 million (YoY +202.9%)
Breakdown of Factors Affecting the ChangeFactors Sales volume, product mix and other factors / Amount +¥700 million, Factors Price revisions and other factors / Amount +¥3.4 billion, Factors Raw material prices, etc. / Amount -¥2.7 billion, Factors Other factor 1 / Amount +¥100 million, Factors Other factor 2 / Amount +¥1.2 billion, Factors Other factor 3 / Amount +¥200 million, Factors Other factor 4 / Amount +¥0.0 billion
Key KPIsIndicator name EBITDA / Value ¥97 100 million / Year on year against the same period last year +46.5%, Indicator name Overseas revenue ratio / Value 25.8 % / Year on year against the same period last year +0.6pt, Indicator name Interim net income per share / Value 82.4 Yen / Year on year against the same period last year +¥27.58
Assumptions Underlying the Business OutlookItem Exchange rate / Value ¥1 = $0.006303, or $1 = ¥158.67, Item Naphtha prices / Value ¥65,200
Medium-term management plan targetsTarget Total payout ratio of at least 50% on a three-year average / Target fiscal year Fiscal year ending March 2027, Target Payout ratio of at least 40%, excluding special dividends / Target fiscal year Fiscal year ending March 2027
Annual DividendAnnual 55 Yen / Interim 27.5 Yen / End of period 27.5 Yen / Special dividend Annual 7.5 Yen
Payout ratioExcluding special dividends 33.8 % / Including special dividends 39.1 % / Total payout ratio Targeting at least 50% on a three-year average under the medium-term management plan
Acquisition of treasury sharesAcquisition cost 3,616 Million yen / Period Through the second quarter (interim period) of the fiscal year ending March 2027
Items this document does not state (14)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookFinancial targetsCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&ANew initiatives

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.

In Japan, compounds and colorants for transportation equipment, and pigments and coatings for information and electronics applications, performed well. Overseas, compounds and colorants in India and gravure inks for the packaging industry in Indonesia performed well. Price revisions, strong sales of high-value-added products and a temporary boost from the consumption of low-cost inventory also contributed to higher profits. The full-year forecast is based on increased sales of high-value-added products and the implementation of profitability improvement measures.

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 Explanatory Materials for the Second Quarter (Interim Period) Financial Results for the Fiscal Year Ending March 2027 | Dainichiseika Color & Chemicals Mfg.Co.,Ltd. (4116) timely disclosure | Komori