Showa Chemical Industry Co.,Ltd., The Current Fiscal Year Ordinary Profit Revised Downward by 23%

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Thu Nov 14, 2024 2:00 pm JST Earnings

4990 Showa Chemical Industry Co.,Ltd. 【J-GAAP】

Earnings Report

Showa Chemical Industry Co.,Ltd. <4990> [TSE-S] announced its financial results in the afternoon session on November 14th (14:00). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) significantly dropped by 50.6% from the same period last year to 249 million yen.

In addition, the full-year consolidated ordinary profit has downwardly by 22.5%, from the previous forecast of 400 million yen to 310 million yen (compared to 719 million yen in the previous period), leading to an increase in the profit decline rate from 44.4% to 56.9%.

Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit for the October to March period (second half) is expected to significant drop by 71.6% from the same period last year to 61 million yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit significantly dropped to 84 million yen, a 66.8% decrease compared to the same period last year. The operating profit margin worsened from 7.3% in the same period last year to 4.6%.

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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	4,587	335	477	346	32.7	57.1	Nov 11, 2022	J-GAAP
Apr - Sep, 2023	4,822	381	504	415	39.2	70.1	Nov 13, 2023	J-GAAP
Apr - Sep, 2024	4,816	198	249	178	16.8	80.3	Nov 14, 2024	J-GAAP
YoY	-0.1%	-48.0%	-50.6%	-57.1%	-57.2%

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	4,700	150	290	220	20.7	3	May 15, 2024	J-GAAP
Apr - Sep, 2024 Results	4,816	198	249	178	16.8	3	Nov 14, 2024	J-GAAP
Revision Rate	+2.5%	+32.0%	-14.1%	-19.1%	-18.9%

Guidance Update

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	9,200	200	400	320	30.1	6	May 15, 2024	J-GAAP
Mar, 2025 New	9,200	220	310	210	19.7	6	Nov 14, 2024	J-GAAP
Revision Rate	0.0%	+10.0%	-22.5%	-34.4%	-34.4%

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	4,374	122	215	169	16.0	8	May 15, 2024	J-GAAP
Oct - Mar, 2024 Guidance	4,384	22	61	32	3.0	3	Nov 14, 2024	J-GAAP
YoY	+0.2%	-82.0%	-71.6%	-81.1%	-81.2%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	9,225	600	835	616	58.2	9	May 15, 2023	J-GAAP
Mar, 2024	9,196	503	719	584	55.1	8	May 15, 2024	J-GAAP
Mar, 2025 Guidance	9,200	220	310	210	19.7	6	Nov 14, 2024	J-GAAP
YoY	+0.0%	-56.3%	-56.9%	-64.0%	-64.2%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	2,293	168	253	231	21.8	7.3	Nov 13, 2023	J-GAAP
Oct - Dec, 2023	2,252	117	149	126	11.9	5.2	Feb 13, 2024	J-GAAP
Jan - Mar, 2024	2,122	5	66	43	4.1	0.2	May 15, 2024	J-GAAP
Apr - Jun, 2024	2,423	88	165	113	10.7	3.6	Aug 14, 2024	J-GAAP
Jul - Sep, 2024	2,393	110	84	65	6.1	4.6	Nov 14, 2024	J-GAAP
YoY	+4.4%	-34.5%	-66.8%	-71.9%	-71.9%