Muromachi Chemicals Inc. Financial Summary for the First Quarter of the Fiscal Year Ending May 2027 [Japanese GAAP] (Non-consolidated)

Performance Overview

For the quarter, net sales amounted to 1,861,129 thousand yen, a 4.1% increase year-over-year, and operating income reached 182,640 thousand yen, representing a substantial increase in profitability. Ordinary income was 191,076 thousand yen, and quarterly net income was 142,180 thousand yen, both showing significant increases, reflecting improved profitability. The reporting segments were changed to two segments: Pharmaceuticals and Chemicals; both segments performed steadily. The financial position improved with total assets of 5,867,332 thousand yen, net assets of 2,677,905 thousand yen, and an improved equity ratio of 45.6%. The full-year earnings forecast for the fiscal year ending May 2027 has been revised, reflecting certain uncertainties.

Outlook and Capital Policy

Cumulative results for the second quarter and full-year forecasts have been revised from previous announcements. The company forecasts net sales of 7,100 hundred million yen, operating income of 550 hundred million yen, ordinary income of 500 hundred million yen, and net income of 350 hundred million yen for the period, while noting that factors such as raw material costs and foreign exchange movements could affect quarterly fluctuations. Regarding dividends, the company maintains a forecast of a full-year dividend of 26.00 yen, including a 13.00 yen year-end dividend for the fiscal year ending May 2027. The company is aiming to improve capital efficiency and stabilize its financial base accordingly.