1Q revenue and earnings decreased YOY primarily due to weaker PVDF performance in Advanced Materials
PVDF price, interlinked with raw material prices, continued to slide after 1Q last year: profit margin improvement is likely seen in the second half year when existing inventory (with high raw material cost) is replaced by new items.
YOY growth in Specialty Chemicals revenue and earnings resulted from a front-loaded shipment for agrochemicals, which however will not impact half-year/full-year segment earnings forecasts
2
FY2023-1Q Financial Summary (1)
(in billions of yen except for per-share values)
1Q
1Q
Change
FY22
FY23
YOY
Revenue
49.3
43.8
-5.5
(-11.2%)
Core operating profit
8.1
4.8
-3.4
(-41.5%)
Adjustments
-0.0
-0.1
-0.1
Other income
0.2
0.4
0.2
Other expenses
0.2
0.1
-0.1
Operating profit
8.1
4.9
-3.2
(-39.4%)
Financial income
0.4
0.7
0.3
Financial expenses
0.1
0.0
-0.0
Profit before taxes
8.5
5.6
-2.9
(-34.2%)
Profit for the period
5.5
3.2
-2.2
attributable to Kureha
(-40.7%)
Basic profit per share(¥)
¥279.79
167.25
(Currency exchange rates)
1USD =
¥129.7
I¥137.5
1EUR =
¥138.3
¥149.6
1CNY =
¥19.6
¥19.6
Vs. 1QFY22
Revenue fell due largely to weaker sales of PVDF (LiB binder) and packaging materials
Core operating profit declined on weakening in Advanced Materials
Operating profit decreased as a result of fewer core operating profit
Profit attributable to Kureha decreased as a result of fewer profit before taxes
3
FY2023-1Q Financial Summary (2)
Segment performance (vs. 1QFY21)
(in billions of yen)
24.5
16.4
6.6
Revenue
1QFY22
5.6
Core operating profit
1QFY22
1QFY23
1QFY23
11.9 11.7
2.1 2.2
9.2
1.9
2.2
4.3 4.3
1.2
0.7
0.1 0.1
0.6 0.6
-0.3
Advanced
Specialty
Specialty Construction
Other
Advanced
Specialty
Specialty Construction
Other
Materials
Chemicals
Plastics
Operations
Materials
Chemicals
Plastics
Operations
Factors affecting core operating profit
AM: Lower pricing for PVDF to reflect lower raw materials prices, impact of existing inventory with high input cost related to PVDF
SC: Sales expansion for agrochemicals and industrial chemicals
SP: Higher home products and fishing line sales partially offset by softening in packaging materials
CO: Construction volume growth in private sector offset by higher material cost
OO: Higher industrial waste treatment volume offset by softening in transportation and hospital operation
Segment Performance:
Advanced Materials
(in billions of yen)
1Q
1Q
Change
FY22
FY23
%
Advanced Materials
Advanced plastics
19.2
11.9
-38%
Carbon products
1.5
1.9
+26%
Other
3.7
2.6
+31%
Revenue
24.5
16.4
-33%
Operating profit
5.6
1.2
-79%
4
Vs. 1QFY22
Revenue ➘ Operating profit ➘
Advanced plastics revenue and profit down:
Sales expansion for PPS and PGA - Lower PVDF pricing
Carbon products revenue and profit up:
Higher carbon fiber volume in the high-heat furnace insulation market
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Disclaimer
Kureha Corporation published this content on 08 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 August 2023 06:12:08 UTC.
KUREHA CORPORATION is a Japan-based company that mainly offers functional, chemical and resin products. The Company operates in five business segments. The Functional Products segment manufactures and sells functional resins and carbon products. The Chemical Products segment manufactures and sells pharmaceuticals, agricultural chemicals, inorganic chemicals, and organic chemicals. The Resin Products segment manufactures and sells food packaging materials and household products. The Construction-Related segment engages in construction contract for civil engineering and construction work, construction work supervision and repair work supervision for industrial facilities. The Others segment engages in transportation and warehousing business, sales, rental and management of real estate, industrial waste treatment and sales of environment-related treatment equipment, operation of hospitals and nursing care facilities for the elderly, as well as others.