ARAKAWA CHEMICAL INDUSTRIES, LTD., The Current Fiscal Year Ordinary Profit Revised Downward by 37%

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Tue Nov 5, 2024 3:00 pm JST Earnings

4968 ARAKAWA CHEMICAL INDUSTRIES, LTD. 【J-GAAP】

Earnings Report

ARAKAWA CHEMICAL INDUSTRIES, LTD. <4968> [TSE-P] announced its financial results in the afternoon session on November 5th (15:00). The consolidated ordinary profit/loss for the cumulative second quarter of the fiscal year ending March 2025 (April to September) turned into a profit of 313 million yen (compared to a loss of 1.45 billion yen in the same period last year).

However, the full-year consolidated ordinary profit has downwardly by 36.8%, from the previous forecast of 1.9 billion yen to 1.2 billion yen (compared to a loss of 2.41 billion yen in the previous period).

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit/loss for the October to March period (second half) is expected to turn into a profit of 887 million yen (compared to a loss of 961 million yen in the same period last year).

In the most recent three-month period, from July to September (2Q), the consolidated ordinary loss improved to a deficit of loss of 493 million yen (compared to a loss of 781 million yen in the same period last year). The operating profit/loss margin significantly improved from -5.7% in the same period last year to -1.5%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Apr - Sep, 2022	41,712	436	756	-1,225	-61.8	ー	Nov 2, 2022	J-GAAP
Apr - Sep, 2023	34,672	-1,827	-1,451	-753	-38.0	ー	Nov 2, 2023	J-GAAP
Apr - Sep, 2024	39,327	313	313	1,634	82.4	26.1	Nov 5, 2024	J-GAAP
YoY	+13.4%	－	－	－	－

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	40,000	900	1,000	1,900	95.8	24	Aug 2, 2024	J-GAAP
Apr - Sep, 2024 Results	39,327	313	313	1,634	82.4	24	Nov 5, 2024	J-GAAP
Revision Rate	-1.7%	-65.2%	-68.7%	-14.0%	-14.0%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	82,600	2,200	1,900	2,100	105.9	48	Aug 2, 2024	J-GAAP
Mar, 2025 New	82,000	1,500	1,200	2,100	105.9	48	Nov 5, 2024	J-GAAP
Revision Rate	-0.7%	-31.8%	-36.8%	0.0%	0.0%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	37,550	-790	-961	-289	-14.6	24	May 14, 2024	J-GAAP
Oct - Mar, 2024 Guidance	42,673	1,187	887	466	23.5	24	Nov 5, 2024	J-GAAP
YoY	+13.6%	－	－	－	－

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	79,431	-2,907	-2,687	-4,941	-249.1	48	May 11, 2023	J-GAAP
Mar, 2024	72,222	-2,617	-2,412	-1,042	-52.6	48	May 14, 2024	J-GAAP
Mar, 2025 Guidance	82,000	1,500	1,200	2,100	105.9	48	Nov 5, 2024	J-GAAP
YoY	+13.5%	－	－	－	－

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	17,374	-993	-781	-439	-22.1	-5.7	Nov 2, 2023	J-GAAP
Oct - Dec, 2023	19,041	-87	-52	171	8.6	-0.5	Feb 5, 2024	J-GAAP
Jan - Mar, 2024	18,509	-703	-909	-460	-23.2	-3.8	May 14, 2024	J-GAAP
Apr - Jun, 2024	19,261	622	806	1,799	90.7	3.2	Aug 2, 2024	J-GAAP
Jul - Sep, 2024	20,066	-309	-493	-165	-8.3	-1.5	Nov 5, 2024	J-GAAP
YoY	+15.5%	+68.9%	+36.9%	+62.4%	+62.4%