Komori
Earnings4968ARAKAWA CHEMICAL INDUSTRIES,LTD.Materials and Chemicals

Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2027 (Japanese GAAP) (Consolidated)

In the first quarter of the fiscal year ending March 2027, net sales and all profit measures significantly exceeded the year-earlier period, driven by demand related to semiconductors, generative AI and data centers, as well as demand brought forward due to customers securing inventory. The full-year earnings forecasts and dividend forecasts remain unchanged.

Worth reading
43Recurring
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
140.3
Year-on-year change in operating profit (%)
Wording
Conditional
How definitive the wording is.

Results for this period

First quarter1 April 2026–30 June 2026ConsolidatedJapanese GAAP
Net Sales22,282¥ millionYear on year +12.0%Progress 25.6%
Operating profit1,637¥ millionYear on year +140.3%Progress 49.6%
Ordinary income1,616¥ millionYear on year +176.0%Progress 57.7%
Net income attributable to owners of the parent1,296¥ millionYear on year +143.2%Progress 57.6%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥65.37
Financial position at period-end
Total assets128,490¥ million
of which net assets 61,403 ¥ millionEquity ratio 50.5%vs. prior year-end +1.0pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Cash inflows and outflows
Operating+1,087
Investment-701
Financials-1,241
Net change-855

Stacked from zero: upward is an increase in cash, downward a decrease (in ¥ million).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period¥7,617 million
Segment revenue
Functional Coatings Business5,15923.2%+15.3%
Paper Manufacturing & Environmental business5,29123.8%+7.9%
Pressure-Sensitive Adhesives and Biomass Business7,80435.1%+13.0%
Fine Electronics Business4,00518.0%+11.3%
Segment profit
Functional Coatings Business1,017+81.2%
Paper Manufacturing & Environmental business520+65.4%
Pressure-Sensitive Adhesives and Biomass Business-263
Fine Electronics Business413+124.8%
Regional sales
Japan12,69757.0%
China4,70921.1%
Asia (excluding China)3,81717.1%
The Americas, Europe and other regions1,0574.7%
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥87,000 million (YoY +5.9%)
Operating profit¥3,300 million (YoY +32.0%)
Ordinary income¥2,800 million (YoY +17.1%)
Net income¥2,250 million (YoY +2.2%)
Annual Dividend Forecast¥50 → ¥55(+10.0%)
Factors Behind Changes in Business Performance

Increased sales of photocurable resins and precision abrasives for hard disks related to focus areas such as semiconductors, generative AI and data centers, and demand brought forward as customers secured inventory amid the impact of the situation in the Middle East.

Disclosure regarding the going concern assumption

No applicable matters.

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNew Number of companies 0 / Company name Not disclosed / Excluded Number of companies 0 / Company name Not disclosed
Impairment lossNo applicable matters.
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets ¥8 million / Extraordinary loss Loss on disposal and sale of non-current assets ¥33 million
Depreciation and amortization¥1,226 million
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingNo
Issued Shares at Period-End20,652,400
Treasury Shares at Period-End813,671
Results for this period
ItemDetails
Fiscal Period ClassificationFirst quarter
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 April 2026–30 June 2026
Net Sales¥22,282 million (YoY +12.0%)
Operating profit¥1,637 million (YoY +140.3%)
Ordinary income¥1,616 million (YoY +176.0%)
Profit attributable to owners of the parent¥1,296 million (YoY +143.2%)
Net income per share¥65.37
Equity ratioEnd of the current fiscal period 50.5 / End of previous period 49.5
Total assets¥128,490 million
Net assets¥61,403 million
Cash flows from operating activities¥1,087 million
Cash flows from investing activities¥-701 million
Cash flows from financing activities¥-1,241 million
Cash and cash equivalents at end of period¥7,617 million
Full-year earnings forecastNet Sales ¥87,000 million (YoY +5.9%) / Operating profit ¥3,300 million (YoY +32.0%) / Ordinary income ¥2,800 million (YoY +17.1%) / Net income ¥2,250 million (YoY +2.2%)
Annual Dividend Forecast¥50 → ¥55(+10.0%)
Segment revenueFunctional Coatings Business ¥5,159 million (YoY +15.3%) / Paper Manufacturing & Environmental business ¥5,291 million (YoY +7.9%) / Pressure-Sensitive Adhesives and Biomass Business ¥7,804 million (YoY +13.0%) / Fine Electronics Business ¥4,005 million (YoY +11.3%)
Segment profitFunctional Coatings Business ¥1,017 million (YoY +81.2%) / Paper Manufacturing & Environmental business ¥520 million (YoY +65.4%) / Pressure-Sensitive Adhesives and Biomass Business ¥-263 million / Fine Electronics Business ¥413 million (YoY +124.8%)
Regional salesJapan ¥12,697 million / China ¥4,709 million / Asia (excluding China) ¥3,817 million / The Americas, Europe and other regions ¥1,057 million
Depreciation and amortization¥1,226 million
Impairment lossNo applicable matters.
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets ¥8 million / Extraordinary loss Loss on disposal and sale of non-current assets ¥33 million
Disclosure regarding the going concern assumptionNo applicable matters.
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNew Number of companies 0 / Company name Not disclosed / Excluded Number of companies 0 / Company name Not disclosed
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingNo
Issued Shares at Period-End20,652,400
Treasury Shares at Period-End813,671
Factors Behind Changes in Business PerformanceIncreased sales of photocurable resins and precision abrasives for hard disks related to focus areas such as semiconductors, generative AI and data centers, and demand brought forward as customers secured inventory amid the impact of the situation in the Middle East.
Items this document does not state (6)
Operating MarginRevision to Earnings ForecastPayout ratioShareholder Return PolicyOrders received and order backlogMaterial subsequent events

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.

Sales of photocurable resins and precision abrasives for hard disks related to focus areas such as semiconductors, generative AI and data centers increased, while demand was brought forward as customers secured inventory amid the impact of the situation in the Middle East. The full-year forecasts remain unchanged because it is difficult to reasonably estimate conditions for raw materials and auxiliary materials, as well as changes in customer trends, resulting from the situation in the Middle East.

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Summary of Financial Results for the First Quarter of the Fiscal Year Ending March 2027 (Japanese GAAP) (Consolidated) | ARAKAWA CHEMICAL INDUSTRIES,LTD. (4968) timely disclosure | Komori