Q1 FY2026 Financial Results Explanation

Overview of Financial Results

In the first quarter of FY2026, net sales reached 200.9 billion yen, up 6.1 billion yen from the same period last year, however, operating profit declined 3.8 billion yen to 14.9 billion yen. Ordinary income was 13.7 billion yen, and net income attributable to owners of the parent was 7.8 billion yen, both of which fell below the previous year's figures. By segment, vinyl acetate sales were 101.9 billion yen, an increase of 1.5 billion yen, but operating profit decreased by 1.1 billion yen to 4.9 billion yen. Isoprene recorded sales of 21.5 billion yen and operating profit of 2.9 billion yen, showing both increases. Functional materials had sales of 52.8 billion yen and operating profit of 3.4 billion yen, both increasing. The fibers segment achieved sales of 14.0 billion yen and operating profit of 1.1 billion yen, also increasing. The main reasons for profit decline include worsening operation rates and price adjustments in some businesses.

Shareholder Returns and Future Outlook

The dividend forecast remains unchanged, with an expected dividend of 64 yen per share (interim 32 yen, Year-end 32 yen), reflecting an increase. The share buyback of 100 billion yen will be continuously implemented from February 12 to March 23, 2026, aiming for a total return ratio of approximately 74%. Although the impact of currency fluctuations, raw material prices, and supply chain disruptions persists, the company plans to leverage its global supply system to maintain stable supply. Currently, no revision to the earnings guidance has been made; however, if a rational outlook becomes possible, it will be promptly disclosed.