Kumiai Chemical reports mixed third quarter 2025 results

Kumiai Chemical Industry Co., Ltd. reported consolidated net sales of 134,485 million yen for the nine months ended July 31, 2025, a 4.1% increase from the previous year. However, operating profit decreased by 15.3% to 10,411 million yen, and ordinary profit fell 31.7% to 11,567 million yen. Profit attributable to owners of parent also saw a 29.5% decline to 9,048 million yen. The company attributes the operating profit decrease primarily to a significant decline in the Agricultural Chemicals and Agriculture-Related Business, despite an increase in the Fine Chemicals Business.

The Agricultural Chemicals and Agriculture-Related Business segment saw net sales rise by 3.1% to 108,141 million yen, but operating profit decreased by 18.9% to 9,976 million yen due to price adjustments for AXEEV. In contrast, the Fine Chemicals Business segment reported a 2.4% increase in net sales to 18,844 million yen and an 83.9% surge in operating profit to 1,430 million yen, driven by strong demand for bismaleimides in electronic materials and strong amine sales. The Other Business segment also experienced a 27.1% increase in net sales to 7,500 million yen but a 23.7% decrease in operating profit to 570 million yen.

Total assets decreased by 8,166 million yen to 267,307 million yen, primarily due to lower merchandise and finished goods. Liabilities decreased by 11,190 million yen, mainly from reduced accounts payable and short-term borrowings. The company maintains its full-year earnings forecast for fiscal year ending October 31, 2025, projecting 159,300 million yen in net sales and 10,400 million yen in operating profit, unchanged from its December 13, 2024 announcement.