Kumiai Chemical sees Q3 profit dip despite sales growth

For the nine months ended July 31, 2025, Kumiai Chemical Industry reported net sales of 134,485 million yen, a 4.1% increase year-on-year. However, operating profit decreased by 15.3% to 10,411 million yen, and ordinary profit fell by 31.7% to 11,567 million yen. Profit attributable to owners of parent also declined by 29.5% to 9,048 million yen. The company attributed the profit decline to reduced equity in affiliates and foreign exchange losses, along with price adjustments for AXEEV due to generic competition in the agricultural chemicals and agriculture-related segment.

Despite the overall profit decrease, the fine chemicals segment saw increased sales due to strong demand for bismaleimides in generative AI servers and stable sales of amines. Kumiai Chemical maintains its full-year earnings forecast for the fiscal year ending October 31, 2025, with no revisions from the forecast announced on December 13, 2024.

R&D expenses are projected to be 7.1 billion yen in FY2025, focusing on overseas market development and cutting-edge technology. Capital investment is planned at 8.5 billion yen for new plant construction and equipment renewal, while depreciation is estimated at 5.2 billion yen. The company anticipates full-year net sales of 159,300 million yen and operating income of 10,400 million yen, a decrease compared to the previous fiscal year.