Sekisui Chemical Co (SKSUF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

This is Nishida. Thank you for taking the time out of your busy schedule to join us today. Before I begin the presentation, I would like to first provide an update on the impact of the earthquake that hit Kumamoto Prefecture on July 28. No injuries or casualties have been reported within our group, and damage to our facilities for production and sales has been minor. So at present, no material impact on our business activities or financial performance has been identified. I will now present our results for the first quarter of FY26 and our outlook for the first half. Page 1 shows your FX assumptions and the actual results. The yen is currently trading at a weaker level than assumed at the outset of the fiscal year. The OP's sensitivity to FX is also indicated here, and 1 yen depreciation against the US dollar would uplift the OP by approximately 500 million yen. Case 2 provides an overview of Q1 results. In the first quarter, net sales increased by ¥27.8 billion year-on-year to ¥333 billion, and operating profit grew by ¥4.3 billion year-on-year to ¥25.5 billion. As indicated by the blue stars, net sales, OP, and ordinary profit all reached record highs. Profit attributable to owners of the parent decreased slightly due to the recognition of extraordinary losses. Page 3 shows first quarter net sales and OP by segment. In the first quarter, three segments recorded increases in both net sales and operating profit, with HPP and UIEP reaching record highs. For housing, net sales and OP were down in Q1, which was broadly in line with our plan. We began the fiscal year with a policy of, in principle, passing through the higher raw material costs stemming from the deteriorating situation in the Middle East. The effort is making good progress. We also believe that customers ...