Nagase & Co., Ltd. TSE:8012
Nagase : FY2025 First Quarter Financial Briefing
Source: MarketScreener
Stock exchange listing : Tokyo (Prime Market) Code number : 8012
Copyright © 202５ NAGASE & CO., LTD.
Executive Summary
The trading business reported a decrease in profit, despite strong performance in the Electronics & Energy and Life & Healthcare segments, mainly due to weaker results in automobile-related business under Functional Materials and Mobility
FY2025
First Quarter Results
FY2025
Earnings Projections
We currently expect that ｔhe impact of U.S. tariff policies will have a negligible effect on NAGASE Group earnings
The Prinova Group Nutrition business is expected narrower losses through efficiency improvements, and is now working to increase top line sales in tandem with said efficiency
We expect sales of formulated epoxy resins for semiconductors used in AI servers to remain strong, and we plan to increase production capacity within the fiscal year as projected at the beginning of the period (four times increase compared with fiscal 2023 levels)
While each business is likely to experience own favorable or unfavorable trends, these trends are generally within the
range of our projections, and we have not revised earlier forecasts
Performance overall was strong in the Prinova Group. While the Prinova’s trading business remained sluggish due to a decline in the food ingredients market prices, despite an overall increase in volume; the manufacturing business supported the trend toward a recovery, mainly through an improved product mix in the Solutions business and efficiency improvements in the Nutrition business
Sales were strong for Nagase ChemteX formulated epoxy resins used in semiconductors for AI servers Nagase Viita is performing well, driven by an expansion of adoptions in its domestic sales of food ingredients Improved profitability through ROIC management improving gross profit margin by 0.2 percentage points The impact of U.S. tariff policies on NAGASE Group earnings has been minimal
Contents
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Management Conscious of Capital Costs and Share Prices | P23 | |
Business Environment Surrounding NAGASE Segments | P24 | |
Sales, Gross Profit, and Operating Income by Quarter | P25 |
Growth Strategies for the Future Cash Allocation in FY2025 Prinova Group Business Overview Turnaround of Prinova Nutrition
Major Cash Inflows and Outflows for FY2021-FY2024
P26～P30
P31 P32 P33 P34
The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses
during the current fiscal year. We used estimates of post-revision figures for fiscal 2024 results in the fiscal 2024 financial statements.
Estimates have now been replaced with finalized figures.
Manufacturing figures represent the aggregate totals of manufacturing subsidiaries.
Trading figures include the aggregate totals of NAGASE and our sales subsidiaries, as well as Corporate & Others and eliminations
Consolidated Statements Income
▶ Gross profit increased due to efforts toward improving profit margin
▶ Operating income decreased due to M&A-related expenses and an increase in selling, general and administrative expenses, which was caused by an increase in retirement benefit expenses related to the amortization of actuarial differences
▶ Profit attributable to owners of the parent increased due to lower tax expenses
FY2024 1Q | FY2025 1Q | Change | Vs.PY | Forecast | Achievement | |
Sales | 2,392 | 2,373 | (18) | 99% | 9,550 | 25% |
Gross profit | 441 18.5% | 443 18.7% | 1 0.2ppt | 100% — | 1,810 19.0% | 24% — |
SG&A expenses | 334 | 340 | 6 | 102% | 1,415 | 24% |
Operating income ＜OP ratio＞ | 107 4.5% | 102 4.3% | (4) (0.2ppt) | 95% — | 395 4.1% | 26% — |
(excluding the effect of actuarial gains and losses) | 98 | 103 | 4 | 105% | 398 | 26% |
Ordinary income | 109 | 106 | (2) | 97% | 385 | 28% |
Profit Attributable to owners of the parent | 74 | 75 | 0 | 101% | 315 | 24% |
US$ Exchange rate (period average) | @ 155.9 | @ 144.6 | @ 11.3 Strong yen | @ 143.0 | ||
RMB Exchange rate (period average) | @ 21.5 | @ 20.0 | @ 1.5 Strong yen | @ 19.0 | ||
100 millions of yen
Impact from foreign exchange: Gross profit, -¥0.7 billion; Operating income, -¥0. 2 billion
The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details.
▶ Higher domestic profit stemming from an increase in domestic sales, mainly due to higher sales of food ingredients at Nagase Viita
and formulated epoxy resins at Nagase ChemteX (including exports)
▶ Overseas profit declined, even as Greater China and ASEAN reported strong semiconductor-related performance, as profit fell in Europe due to weak sales of food ingredients by the Prinova Group and the impact of the stronger yen, among other factors
Gross Profit by Region
Domestic & Overseas Gross profit(100 millions of yen) Overseas gross profit By Region(100 millions of yen)
Total 441 | Total 443 | |||
Overseas | Overseas | |||
236 | 233 | |||
Overseas | Overseas | |||
gross profit | gross profit | |||
ratio | ratio | |||
53.6% | 52.7% | |||
Domestic | Domestic | |||
204 | 209 | |||
500
450
400
350
300
250
200
150
100%
300
Other
Total 236
4
1.8%
Total 233
Other
3
1.7%
Europe
42
18.1%
Europe
33
14.4%
Americas
83
35.1%
Americas
82
35.5%
ASEAN
42
18.0%
ASEAN
19.6%
45
Greater China
63
27.0%
Greater
China
67
28.8%
250
200
150
100
100
50
0
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
FY2024 1Q FY2025 1Q
50
0
FY2024 1Q FY2025 1Q
Domestic figures under Domestic & Overseas Gross Profit include inter-regional adjustments
The Prinova Group revised part of its classification between cost of goods manufactured and selling, general and administrative expenses during the current fiscal year. See the Contents page for details.