Denka Company Limited, First Half Ordinary Profit Decreases by 31%, July-September Ordinary Profit Decreases by 66%

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Fri Nov 8, 2024 11:00 am JST Earnings

4061 Denka Company Limited 【J-GAAP】

Earnings Report

Denka Company Limited <4061> [TSE-P] announced its financial results in the morning on November 8th (11:00). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) dropped by 31.1% from the same period last year to 5.57 billion yen. The progress rate against the 12 billion yen full-year plan was 46.5%, also falling below the five-year average of 72.0%.

Based on the first-half performance announced by the company and the unchanged 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 6.42 billion yen (compared to a loss of 2.61 billion yen in the same period last year).

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit significantly dropped to 1.96 billion yen, a 65.6% decrease compared to the same period last year. The operating profit margin worsened from 7.5% in the same period last year to 4.5%.

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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	202,928	18,308	17,020	14,327	166.2	60.7	Nov 8, 2022	J-GAAP
Apr - Sep, 2023	191,369	10,535	8,087	6,559	76.1	147.7	Nov 8, 2023	J-GAAP
Apr - Sep, 2024	199,054	9,385	5,574	3,372	39.1	46.5	Nov 8, 2024	J-GAAP
YoY	+4.0%	-10.9%	-31.1%	-48.6%	-48.6%

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	200,000	8,500	5,000	4,000	46.4	50	May 10, 2024	J-GAAP
Apr - Sep, 2024 Results	199,054	9,385	5,574	3,372	39.1	50	Nov 8, 2024	J-GAAP
Revision Rate	-0.5%	+10.4%	+11.5%	-15.7%	-15.7%

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	197,894	2,841	-2,613	5,388	62.5	40	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	220,946	8,615	6,426	5,628	65.3	50	Nov 8, 2024	J-GAAP
YoY	+11.6%	+203.2%	－	+4.5%	+4.5%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	407,559	32,324	28,025	12,768	148.1	100	May 11, 2023	J-GAAP
Mar, 2024	389,263	13,376	5,474	11,947	138.6	100	May 10, 2024	J-GAAP
Mar, 2025 Guidance	420,000	18,000	12,000	9,000	104.4	100	May 10, 2024	J-GAAP
YoY	+7.9%	+34.6%	+119.2%	-24.7%	-24.7%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	103,540	7,739	5,702	4,264	49.5	7.5	Nov 8, 2023	J-GAAP
Oct - Dec, 2023	101,474	2,018	376	-2,977	-34.5	2.0	Feb 7, 2024	J-GAAP
Jan - Mar, 2024	96,420	823	-2,989	8,365	97.1	0.9	May 10, 2024	J-GAAP
Apr - Jun, 2024	95,227	4,717	3,612	2,250	26.1	5.0	Aug 7, 2024	J-GAAP
Jul - Sep, 2024	103,827	4,668	1,962	1,122	13.0	4.5	Nov 8, 2024	J-GAAP
YoY	+0.3%	-39.7%	-65.6%	-73.7%	-73.7%