Artience sees mixed Q3 FY2025 results amid shifting market dynamics

Artience Co., Ltd. reported a 0.7% decrease in net sales to JPY 258.4 bn and a 5.8% decrease in operating profit to JPY 14.9 bn for the first three quarters of FY225 compared to the same period in FY2024. Despite a stronger yen, sales remained on par year-on-year. Profit attributable to owners of parent saw a significant decline of 23.4% to JPY 9.7 bn, primarily due to a decrease in gain on sale of investment securities. Looking at Q3 specifically, both sales and profit increased year-on-year, driven by strong performance in Polymers and Coatings and Packaging Materials segments.

Raw material prices showed a mixed trend, with naphtha-derived materials declining, while UV-related materials, silver, oils, and fats soared. Cost reduction efforts, mainly in Japan, partially offset these increases. The sales mix was impacted by sluggish color filter materials and UV curable inks, despite volume growth in optical pressure-sensitive adhesives for displays, can coatings, and gravure inks. The company also implemented price revisions, predominantly in Japan, to address rising costs.

Artience anticipates full-scale shipments of CNT dispersions for LiBs to a major customer in China to commence around December 2025. The company expects prices of naphtha-derived raw materials to stabilize, but raw materials for UV curable inks and silver are projected to remain high.