Dainichiseika reports strong interim operating profit, raises full-year forecast

Dainichiseika Color & Chemicals Mfg. Co., Ltd. reported consolidated results for its second quarter (interim period) with net sales of JPY 617 bn, a slight decrease of 0.7% year-on-year. Despite this, operating profit saw a robust increase of 18.1% to JPY 41 bn, exceeding the initial forecast of JPY 36 bn. This growth was attributed to increased sales volumes and price revisions in Japan, while overseas operations, particularly in China and the US, faced some challenges.

The company maintains a positive outlook for the full fiscal year ending March 2026, projecting consolidated net sales of JPY 1,273 bn, up 2.0% from the previous year, and an operating profit of JPY 72 bn, a 2.8% increase. This forecast includes a special gain of JPY 15 bn from the sale of investment securities. Dividends for the fiscal year are projected at JPY 174 per share, including a JPY 30 special dividend.

In line with its medium-term management plan, Dainichiseika is advancing strategic investments, including a new HPU pilot plant and capacity expansion at its Thai subsidiary. The company also acquired land in Indonesia for JPY 6 bn to expand its factory and research facilities, underscoring its commitment to future growth and innovation.