FY2022 1Q Results
August 9, 2022
Highlights
FY2022 1Q Results
YoY: Delivered strong revenue and profit growth driven by broad-based pricing actions for advanced plastics and volume gains in Advanced Materials, more than offsetting higher fuel and raw material costs and increased SG&A expenses in Specialty Chemicals and Specialty Plastics QoQ: Both revenue and profit up sequentially due primarily to expanded PVDF and agrochemicals sales and seasonal demand for home products, coupled with the absence of impairment losses recorded in 4Q/FY21
FY2022 2Q(Half-year) Outlook
Vs. FY21 2Q: Projecting top and bottom line growth as Advanced Materials sales continue to expand, partially offset by inflationary impacts on Specialty Chemicals and Specialty Plastics and slower environmental businesses related to industrial waste treatment. 2Q profit growth likely to slow down verses 1Q with further impacts of surging energy and raw material prices.
Vs. Initial forecast: Upgrading 2Q forecast to reflect limited impact of presumed risks seen during 1Q; expected revenue expansion led by a weaker Japanese yen, higher prices and higher agrochemical sales volumes (a front-loaded delivery); and spending of SG&A expenses postponed to 3Q-4Q
*Kureha will continually monitor the impact of potential risks and announce its updated full-year forecast based on changes in the business conditions when reporting 2Q results.
1
1Q/FY21 4Q/FY21 | 1Q/FY22 | YoY | QoQ | ||
AM | 1.0 | 5.8 | 5.6 | +4.7 | -0.1 |
SC | -0.0 | -0.7 | -0.3 | -0.3 | +0.4 |
SP | 2.3 | 1.3 | 2.1 | -0.2 | +0.8 |
CO & Other | 1.0 | 1.1 | 0.7 | -0.3 | -0.4 |
Adjustments | 0.0 | -5.5 | 0.0 | -0.0 | +5.5 |
Core operating | 4.3 | 2.0 | 8.1 | +3.9 | +6.2 |
profit | |||||
2Q/FY22 | 2Q/FY22 | Vs. | Vs. | ||
2Q/FY21 | Initial | Revised | Initial | ||
2Q/FY21 | |||||
forecast | forecast | forecast | |||
AM | 2.6 | 5.2 | 7.5 | +4.9 | +2.3 |
SC | 1.2 | 0.5 | 0.8 | -0.4 | +0.3 |
SP | 5.1 | 3.5 | 3.7 | -1.4 | +0.2 |
CO & Other | 2.2 | 1.3 | 1.3 | -0.9 | +0.0 |
Adjustments | 0.2 | -0.5 | -0.3 | -0.5 | +0.2 |
Core operating | 11.4 | 10.0 | 13.0 | +1.6 | +3.0 |
profit | |||||
2
FY2022 1Q Summary (1)
(in billions of yen) | Vs. FY2021 1Q | ||||
FY2021 | FY2022 | Change | |||
• Revenue growth led by advanced plastics, | |||||
1Q | 1Q | YOY | |||
Revenue | 37.8 | 49.3 | 11.4 | particularly PVDF binder for lithium-ion | |
batteries | |||||
(+30.2%) | |||||
Core operating profit | 4.2 | 8.1 | 3.9 | • Higher core operating profit driven by strong | |
(+92.1%) | gains in advanced plastics | ||||
Adjustments | 0.0 | -0.0 | -0.1 | • Operating profit increased as a result of higher | |
Other income | 0.1 | 0.2 | 0.1 | ||
core operating profit | |||||
Other expenses | 0.1 | 0.2 | 0.1 | ||
Operating profit | 4.3 | 8.1 | 3.9 | • Profit attributable to the Company increased as | |
(+91.4%) | a result of higher profit before taxes | ||||
Financial income | 0.2 | 0.4 | 0.2 | ||
Financial expenses | 0.1 | 0.1 | -0.1 | ||
Profit before taxes | 4.4 | 8.5 | 4.2 | ||
(+95.4%) | |||||
Profit attributable to | 3.3 | 5.5 | 2.2 | ||
owners of Kureha Corp. | (+65.3%) | ||||
Profit per share (¥) | ¥169.26 | ¥279.79 |
[References] FOREX ¥/USD: | ¥109.5 | ¥129.7 |
¥/EUR: | ¥131.9 | ¥138.3 |
¥/CNY: | ¥17.0 | ¥19.6 |
3
FY2022 Q1 Summary (2)
Performance by Segment (vs. 1Q/FY21)
Revenue
24.5
1Q/FY21 1Q/FY22
14.2
11.2 11.9
5.36.6
4.4 4.3
2.6 1.9
Advanced | Specialty | Specialty Construction | Other |
Materials | Chemicals | Plastics | Operations |
(in billions of yen)
Core operating profit
5.6 | 2.3 2.1 | 1Q/FY21 | 1Q/FY22 | ||||||||||||||||||
1.0 | |||||||||||||||||||||
0.1 0.1 | 0.9 | 0.6 | |||||||||||||||||||
-0.0 | |||||||||||||||||||||
-0.3 | |||||||||||||||||||||
Advanced | Specialty | Specialty Construction | Other | ||||||||||||||||||
Materials | Chemicals | Plastics | Operations |
Factors attributing to changes in core operating profit
AM: Sales expansion of PVDF, PPS, PGA and other plastic products
SC: Higher agrochemicals volumes more than offset by impact of mandatory drug price revisions and higher fuel and raw material costs
SP: Higher packaging materials volumes more than offset by slower home product and fishing line sales
CO: Fewer private construction projects
OO: Decreased volumes related to industrial waste treatment
Segment Performance: Advanced Materials
(billions of yen)
FY2021 | FY2022 | Change | |
1Q | 1Q | % | |
Advanced Materials | |||
Advanced plastics | 9.7 | 19.2 | +98% |
Carbon products | 1.5 | 1.5 | +7% |
Other | 3.1 | 3.7 | +20% |
Revenue | 14.2 | 24.5 | +72% |
Operating profit | 1.0 | 5.6 | +481% |
4
Vs. FY2021 1Q
Revenue ➚ Operating profit ➚
Advanced plastics
Revenue up, profit up:
- Continued strong demand for PVDF in the automotive LiB market
- higher PPS and PGA sales volumes
Carbon products
Revenue and profit leveled off:
- Sales volumes of carbon fiber used for high- heat furnace insulation and automotive sliding materials on par with prior year
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Kureha Corporation published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 06:55:03 UTC.