Kumiai Chemical reports mixed 2025 results, cautious 2026 forecast

Kumiai Chemical Industry Co., Ltd. announced its consolidated financial results for the fiscal year ended October 31, 2025, revealing a 5.8% increase in net sales to 170,462 million yen. However, operating profit declined by 6.9% to 10,567 million yen, and ordinary profit dropped significantly by 27.0% to 13,363 million yen. Profit attributable to owners of parent saw a substantial decrease of 67.8% to 4,381 million yen, impacted by impairment losses on non-current assets and foreign exchange losses.

Despite the overall profit decline, the company declared a year-end dividend of 14 yen per share for FY2025, resulting in an annual dividend of 24 yen per share, including the interim dividend. This represents a payout ratio of 66.0%. Total dividends for the year amounted to 2,890 million yen. The company aims for a stable dividend payout ratio of 30% or more, reflecting its commitment to shareholder returns.

For the fiscal year ending October 31, 2026, Kumiai Chemical Industry forecasts a decrease in net sales by 5.0% to 162,000 million yen, with operating profit projected to fall by 31.9% to 7,200 million yen. Ordinary profit is expected to decrease by 18.4% to 10,900 million yen, while profit attributable to owners of parent is forecast to increase by 46.1% to 6,400 million yen. This forecast includes an annual dividend of 24 yen per share.