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Nippon Denko, Ordinary Profit Forecast for the Fiscal Year Revised Downward by 14%, The Undecided Dividend Raised by 1 Yen

Tue Aug 5, 2025 3:30 pm JST Earnings

5563 Nippon Denko Co., Ltd. 【J-GAAP】

Earnings Report

Nippon Denko Co., Ltd. <5563> [TSE Prime] announced its financial results after the market closed on August 5th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending December 2025 (January to June) was 1.17 billion yen, a 2.1% increase compared to the same period last year.

However, the full-year forecast for consolidated ordinary profit has decreased 14.3%, from the previous forecast of 3.50 billion yen to 3.00 billion yen (compared to 4.85 billion yen in the previous period), leading to an increase in the profit decline rate from 28.0% to 38.3%.

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 July to December period (second half) is expected to significant drop 50.8% from the same period last year to 1.82 billion yen.

At the same time, the company has decided to implement a annual dividend of 12 yen for the current fiscal year, which was previously undecided (compared to 11 yen in the prior term).

In the most recent three-month period, from April to June (2Q), the consolidated ordinary profit decreased to 0.79 billion yen, a 30.0% decrease compared to the same period last year. The operating profit margin worsened from 7.4% in the same period last year to 5.2%.

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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
Jan - Jun, 2023 40,317 1,909 1,071 771 5.6 44.3 Aug 7, 2023 J-GAAP
Jan - Jun, 2024 36,495 2,213 1,152 534 3.9 23.7 Aug 7, 2024 J-GAAP
Jan - Jun, 2025 38,104 1,985 1,176 468 3.4 39.2 Aug 5, 2025 J-GAAP
YoY +4.4% -10.3% +2.1% -12.4% -12.1%

First Half Results vs. Previous Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jan - Jun, 2025 Guidance ー ー ー ー － 5 May 8, 2025 J-GAAP
Jan - Jun, 2025 Results 38,104 1,985 1,176 468 3.4 5 Aug 5, 2025 J-GAAP
Revision Rate － － － － －

Guidance Update

Full Year Update

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2025 Prev 76,600 ー 3,500 ー － － May 8, 2025 J-GAAP
Dec, 2025 New 78,200 5,200 3,000 1,600 12.9 12 Aug 5, 2025 J-GAAP
Revision Rate +2.1% － -14.3% － －

Current Period Guidance

Second Half Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Jul - Dec, 2024 41,740 4,643 3,707 2,610 19.0 7 Feb 12, 2025 J-GAAP
Jul - Dec, 2025 Guidance 40,096 3,215 1,824 1,132 9.1 7 Aug 5, 2025 J-GAAP
YoY -3.9% -30.8% -50.8% -56.6% -52.1%

Current Period Guidance

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Adj. Dividend Announce Accounting Standards
Dec, 2023 78,390 4,696 2,420 4,330 31.5 9 Feb 8, 2024 J-GAAP
Dec, 2024 78,235 6,856 4,859 3,144 22.9 11 Feb 12, 2025 J-GAAP
Dec, 2025 Guidance 78,200 5,200 3,000 1,600 12.9 12 Aug 5, 2025 J-GAAP
YoY 0.0% -24.2% -38.3% -49.1% -43.8%

Quarterly Results

Fiscal Year Revenue Operating Profit Ordinary Profit Net Profit Adj. EPS Operating Profit Margin Announce Accounting Standards
Apr - Jun, 2024 18,787 1,386 1,134 851 6.2 7.4 Aug 7, 2024 J-GAAP
Jul - Sep, 2024 19,981 1,445 1,285 1,005 7.3 7.2 Nov 6, 2024 J-GAAP
Oct - Dec, 2024 21,759 3,198 2,422 1,605 11.7 14.7 Feb 12, 2025 J-GAAP
Jan - Mar, 2025 19,379 1,014 382 25 0.2 5.2 May 8, 2025 J-GAAP
Apr - Jun, 2025 18,725 971 794 443 3.2 5.2 Aug 5, 2025 J-GAAP
YoY -0.3% -29.9% -30.0% -47.9% -47.7%

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