Business Results for the First Quarter of Fiscal Year Ending March 31, 2025
(April 1, 2024 － June 30, 2024)
August 9, 2024
Copyright © Toyo Gosei Co., Ltd. All rights reserved.
Financial Results for the Q1 FY2024
- Net sales increased significantly by 21% YoY to 9,216 million yen, thanks to inventory adjustments coming to an end and a rapid recovery in sales of advanced semiconductor materials.
- Operating profit was 1,302 million yen, up 56% YoY, thanks to increased sales.
(Million yen)
Net sales
Q1 FY2023
Results
7,611
Q1 FY2024
Results
9,216
YoY | |
Change | % |
+1,604 | +21% |
Operating profit | 834 | 1,302 | +467 | +56% |
Ordinary profit | 820 | 1,424 | +603 | +74% |
Profit | 552 | 968 | +416 | +75% |
FX Rate (USD) | ¥136/$ | ¥154/$ | ||
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Variance Analysis: Operating profit
- Increased sales absorbed increased costs for production capacity expansion, resulting in a 56%
increase in profit over the same period of the previous year.
(Billion yen)
+0.69 +0.07
FX
0.83
Sales Growth
Operating
profit
−0.11 −0.18
Inventory Valuation
Increase in
production costs
such as personnel,
etc.
※Investments to increase production capacity are progressing according to the mid-term plan.
1.3 | +56% |
+¥0.46 billion |
Operating
profit
FY2023 Q1FY2024 Q1
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Quarterly Sales & Operating profit Trends
- Inventory adjustments from FY2022 Q2 have settled down and quarterly sales have returned to record highest level ever.
Quarterly Sales & Operating profit
(Million yen) | Sales Recovery | (Million yen) | ||||||||
10,000 | 9,232 | 9,216 | 2,000 | |||||||
8,000 | 1,302 | 1,600 | ||||||||
6,000 | 1,200 | |||||||||
4,000 | 800 | |||||||||
2,000 | Net sales | 400 | ||||||||
Operating profit | ||||||||||
0 | 0 | |||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | ||
FY2022 | FY2023 | FY2024 |
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Photosensitive Materials Segment
Net sales & Operating profit
(Million yen) | Net sales | (Million yen) | Net sales: ¥5,285 million | |||||||||||||||||||||
6,000 | Operating profit | 5,615 | 5,285 | 1,500 | ||||||||||||||||||||
YoY: +¥453 million, +9% | ||||||||||||||||||||||||
4,832 | 4,466 | 4,477 | • Sales of semiconductor materials are recovering, | |||||||||||||||||||||
especially in cutting-edge fields, and are expanding. | ||||||||||||||||||||||||
4,000 | 913 | 1,000 | • Regarding display materials, panel production has | |||||||||||||||||||||
been maintained at a certain level, mainly in China, and | ||||||||||||||||||||||||
630 | demand for our company has been strong. | |||||||||||||||||||||||
574 | ||||||||||||||||||||||||
446 | Operating profit: ¥630 million | |||||||||||||||||||||||
2,000 | 500 | |||||||||||||||||||||||
222 | YoY: +¥56 million, +10% | |||||||||||||||||||||||
• Increased demand absorbed increased costs | ||||||||||||||||||||||||
associated with increased production capacity, | ||||||||||||||||||||||||
0 | 0 | resulting in higher profits. | ||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||
FY2023 | FY2024 | |||||||||||||||||||||||
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Chemicals Segment
Net sales & Operating profit
(Million yen) | Net sales | (Million yen) | |||
5,000 | Operating profit | 1,500 | |||
4,000 | 3,930 | ||||
3,563 | |||||
3,245 | 1,000 | ||||
2,977 | |||||
3,000 | 2,778 | ||||
671 | |||||
2,000 | |||||
417 | 437 | 500 | |||
1,000 | |||||
260 | 240 | ||||
0 | 0 | ||||
Q1 | Q2 | Q3 | Q4 | Q1 | |
FY2023 | FY2024 |
Net sales: ¥3,930 million
YoY: +¥1,151 million, +41%
- In the electronic materials sector, inventory adjustments have been completed and sales of advanced semiconductor materials have surged.
- Sales of flavor and fragrance materials increased as demand continued to recover.
- In logistics, tank contract rates remained high despite sluggish cargo movement.
Operating profit: ¥671 million
YoY: +¥411 million, +158%
- Profit increased 2.6 times YoY thanks to increased demand.
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Q1 FY2024 Income Statement
- Net sales were 9,216 million yen (YoY +21%).
- Gross profit increased by 554 million yen as sales growth absorbed increased expenses, and the gross profit margin improved by 1.8 points to 26.1%.
- Operating profit increased by 603 million yen thanks to foreign exchange gains, and the operating profit margin improved by 4.7 points to 15.5%.
(Million yen) | Q1 FY2023 | Q1 FY2024 | Change | % |
Net sales | 7,611 | 9,216 | +1,604 | +21% |
Cost of sales | 5,757 | 6,808 | +1,050 | +18% |
Gross profit | 1,853 | 2,408 | +554 | +30% |
SG&A expenses | 1,019 | 1,105 | +86 | +8% |
Operating profit | 834 | 1,302 | +467 | +56% |
Non-operating income | 15 | 176 | +160 | － |
Non-operating expenses | 29 | 54 | +24 | +84% |
Ordinary profit | 820 | 1,424 | +603 | +74% |
Extraordinary income & losses | (15) | (26) | (10) | － |
Profit before income taxes | 804 | 1,398 | +593 | +74% |
Income taxes | 252 | 429 | +177 | +70% |
Profit | 552 | 968 | +416 | +75% |
Gross profit Margin 24.4%→26.1% Improved by 1.8 points
Ordinary profit Margin 15.5％
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Q1 FY2024 Balance sheet
- Working capital improved by 1.2 billion yen thanks to sales expansion.
- Due to continued capital investment to increase production capacity, tangible fixed assets increased by 868 million yen and borrowings increased by 1,718 million yen.
- Thanks to the increase in profit, shareholders' equity increased by 809 million yen. The equity ratio rose to 37.2% (+0.5pt).
Mar. 2024 | Jun. 2024 | Change | Mar. 2024 | Jun. 2024 | Change | ||||||||
(Million yen) | ended | ended | (Million yen) | ended | ended | ||||||||
Current assets | 22,682 | 23,204 | +521 | Liabilities | 37,691 | 38,185 | +493 | ||||||
3,645 | 3,519 | Notes and accounts | 4,009 | 5,552 | |||||||||
Cash and deposits | (125) | +1,543 | |||||||||||
payable - trade | |||||||||||||
Notes and accounts | 7,222 | 6,977 | 22,008 | 23,727 | |||||||||
(245) | Borrowings | +1,718 | |||||||||||
receivable - trade | |||||||||||||
10,338 | 10,976 | 11,673 | 8,905 | ||||||||||
Inventories | +637 | Other | (2,767) | ||||||||||
Other | 1,475 | 1,730 | +255 | 0 | 0 | +0 | |||||||
Fixed assets | 36,834 | 37,647 | +812 | Net assets | 21,825 | 22,666 | +840 | ||||||
Property, plant and | 33,862 | 34,731 | +868 | Shareholders' equity | 21,635 | 22,444 | +809 | ||||||
equipment | |||||||||||||
Intangible assets | 1,579 | 1,650 | +71 | Valuation and translation | 190 | 221 | +30 | ||||||
adjustments | |||||||||||||
Investments and other | 1,393 | 1,265 | (127) | 0 | 0 | +0 | |||||||
assets | |||||||||||||
Total assets | 59,517 | 60,852 | +1,334 | Liabilities and net assets | 59,517 | 60,852 | +1,334 | ||||||
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Progress of First Half Earnings Forecasts
- Progress rates for the first quarter against the first half forecast were 51% for net sales, 84% for operating profit, and 95% for ordinary profit.
- The rapid recovery in demand has improved operating rates and accelerated profit progress.
(Million yen)
Net sales
H1 FY2024 Forecasts
18,000
Q1 FY2024
Results
9,216
Progress
Ratio
51%
Operating profit | 1,550 | 1,302 | 84% | ||||
Ordinary profit | 1,500 | 1,424 | 95% | ||||
Profit | 1,000 | 968 | 97% | ||||
FX Rate (USD) | ¥148/$ | ¥154/$ | |||||
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Revision to Earnings Forecasts for the FY2024
- The first-half earnings forecast was revised upward as demand in the semiconductor market has recovered more quickly than initially expected.
- For the second half of the year, the previously announced forecast includes the continuation of the demand recovery from the first half, and the forecast remains unchanged.
- Full-yearnet sales are expected to reach a record high.
H1 FY2024 | FY2024 Full Year | |||||||
Previous | Revised | Change | % | Previous | Revised | Change | % | |
(Million yen) | Forecasts | Forecasts | Forecasts | Forecasts | ||||
Net sales | 18,500 | 18,700 | +700 | +4% | 37,500 | 38,200 | +700 | +2% |
Operating profit | 1,550 | 2,050 | +500 | +32% | 3,100 | 3,600 | +500 | +16% |
Ordinary profit | 1,500 | 2,000 | +500 | +33% | 3,000 | 3,500 | +500 | +17% |
Profit | 1,000 | 1,350 | +350 | +35% | 2,150 | 2,500 | +350 | +16% |
FX Rate (USD) | ¥148/$ | ¥148/$ | ¥148/$ | ¥148/$ | ||||
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