Translation ― Original text in Japanese
FY03/2026 Q1 (April 1, 2025 to June 30, 2025)
Financial Results Materials
(Highlights)
July 30, 2025Key Points of the Summary
Promoting the Medium-Term Management Plan
"Chori Innovation Plan 2025 (CIP2025)"
Gross profit margin improvement in progress for achieving FY03/2026 business results forecast, the final year of CIP2025.
Fully launched the new mission-critical system (SAP). Establishing the foundation for our
growth strategy.
POINT
- Net sales and profit decreased YoY.
- FY03/2026 Q1 results were generally in line with the full-year forecast.
-
Equity ratio 65.4% Maintained at a high level.
*1
base-
ROE
10.9%
*1: Net profit attributable to owners of parent (annual basis)
-
ROIC*2 11.0%
*2: ROIC = Operating profit after income taxes (annual basis)
/ Invested capital (Equity + Interest-bearing debt) average during the period
Topics - The new mission-critical system (SAP) went into operation in April 2025 as planned.
-
ROIC*2 11.0%
-
ROE
10.9%
Business Results Breakdown (YoY Comparison)
The Japanese economy is on a gradual recovery path, with employment and income conditions improving against a
backdrop of robust corporate earnings. The outlook for the global economy is uncertain mainly due to geopolitical
risks and U.S. tariff policies.
Net sales decreased mainly due to market downturn and exchange rate impacts. Although gross profit margin improved, it was not sufficient to offset the increase in SG&A expenses, resulting in a decline in operating profit. Moreover, profit before income taxes significantly decreased mainly due to the rebound of the reversal of allowance for doubtful accounts and the gain on sale of investment securities recorded in FY03/2025 Q1.
POINT
Unit: billions of yen | FY03/2025 Apr.-Jun. | FY03/2026 Apr.-Jun. | Difference | Ratio |
Net sales | 77.0 | 71.6 | -5.4 | -7.0% |
Gross profit | 9.9 | 10.1 | +0.2 | +2.0% |
Selling, general and administrative expenses | 6.2 | 6.8 | +0.5 | +8.5% |
Operating profit | 3.6 | 3.3 | -0.3 | -9.1% |
Ordinary profit | 4.9 | 3.3 | -1.6 | -32.5% |
Profit before income taxes | 5.6 | 3.2 | -2.4 | -42.5% |
Net profit attributable to owners of parent | 4.2 | 2.5 | -1.7 | -39.7% |
Reasons for Changes in Profit before Income Taxes
Unit: billions of yen
-0.7 +0.9 -0.5 -1.6Effect of decreased sales
Improved gross profit margin
Increased SG&A
expenses
FY03/2025 Q1 Decreased 5.6 Gain on sale of investment securities: 0.8 billions of yen foreign exchange Reversal of allowance for doubtful accounts: 0.8 billions of yen gains, etc. | 3.2 | |||
One-off profit recorded in
FY03/2025
Apr.-Jun.
FY03/2026
Apr.-Jun.
Segment Results
Net sales
Unit: billions of yen
FY03/2025
Apr.-Jun.
Fibers, Textiles, and Garments
0.1
0.0
0.2
0.0
37.7
40.3
33.7
36.5
FY03/2025 Apr.-Jun. | FY03/2026 Apr.-Jun. | Difference | |
Fibers, Textiles, and Garments | 36.5 | 33.7 | -2.8 |
Chemicals | 40.3 | 37.7 | -2.6 |
Machinery | 0.2 | 0.1 | -0.0 |
Others | 0.0 | 0.0 | -0.0 |
Total | 77.0 | 71.6 | -5.4 |
Chemicals ■ Machinery ■ Others
FY03/2026
Apr.-Jun.
Profit (loss) before income taxesFY03/2025
Apr.-Jun.
FY03/2026
Apr.-Jun.
Difference
Fibers, Textiles,
and Garments
2.6
1.5
-1.1
Chemicals
2.8
2.0
-0.8
Machinery
0.1
0.1
-0.0
Others*
0.1
-0.4
-0.6
Total
5.6
3.2
-2.4
Unit: billions of yen
Fibers, Textiles, and Garments
Chemicals ■ Machinery ■ Others*
2.8
0.1
0.1
0.1
-0.4
2.0
1.5
2.6
FY03/2025
Apr.-Jun.
FY03/2026
Apr.-Jun.
*"Others" includes adjustments.
Fibers, Textiles, and Garments Chemicals Machinery
Decreased sales and profit
Decreased sales and profit
Decreased sales and profit
Sluggish
Overall
Sluggish Performance chemicals
Sluggish
Automotive sales for European market
Decreased
Rebound of the gain on sale of investment securities
Decreased
Recovery
Rebound of the reversal of allowance for doubtful accounts
Fine chemicals
CHORI CO., LTD. 4