JGC Holdings Corporation (JGCCF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

My name is Taguchi, Executive Officer and General Manager of the Finance Unit. I'll be giving you an outline of financial results first half fiscal year 2024. Slide 4, please. This is the consolidated income statement. Net sales were flat year-on-year at 406.7 billion yen. Gross profit slightly decreased to 27.3 billion yen. Due to the yen appreciating to 142 yen per U.S. dollar by the end of September, our gross profit margin slightly decreased to 6.7%. Operating profit remained almost flat at 12.4 billion yen, but ordinary profit decreased by 6 billion yen compared to the same period last year, resulting in 19.3 billion yen. The decline in ordinary profit was also due to the revaluation of foreign currency denominated assets and liabilities caused by the strong yen. Meanwhile, profit attributable to owners of the parent remained flat year-on-year at 12.7 billion yen due to a decrease in the effective tax rate. Progress in net sales to operating profit is slightly below 50% of the four-year forecast. Page 5, please. This is the segment information for first half. In the total engineering business, a decrease in revenue from domestic life sciences sector was offset by an increase in that from overseas chemical sector, resulting in net sales remaining flat year-on-year at 378.2 billion yen with segment profit at 11.8 billion yen. In the functional materials manufacturing business, although there were signs of demand recovery, particularly for fine chemical products, electronic materials, and semiconductor manufacturing equipment parts, catalyst-related sales did not reach the last year's level, resulting in overall sales remaining flat year on year. Sales were 26.5 billion yen, with segment profit at 3.7 billion yen. Page 6, please. This is the situation of new contra...