| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| 売上高 | ¥4165.6B | ¥4071.4B | +2.3% |
| 営業利益 | ¥416.1B | ¥410.1B | +1.5% |
| 経常利益 | ¥427.7B | ¥393.5B | +8.7% |
| 純利益 | ¥252.9B | ¥214.8B | +17.7% |
| ROE | 6.8% | 6.1% | - |
For the fiscal year ended March 2026, ADEKA achieved revenue of ¥4165.6B (YoY +¥94.2B +2.3%), Operating Income of ¥416.1B (YoY +¥6.0B +1.5%), Ordinary Income of ¥427.7B (YoY +¥34.2B +8.7%), and Net Income attributable to owners of the parent of ¥278.7B (YoY +¥28.5B +11.4%), representing year-over-year revenue and profit growth. Operating margin was 10.0%, roughly unchanged from the prior year, while Ordinary Income outpaced operating-stage growth due to improved non-operating income/expenses. Net Income benefited from near-neutral extraordinary items (net ¥1.0B), resulting in recurring profit-driven growth. By segment, Life Sciences led high growth with Revenue +11.9% and Operating Income +26.4%, while Chemicals slowed with Revenue -1.7% and Operating Income -6.0%; overall gross margin improved to 28.5% (prior year 28.2%). Operating Cash Flow was ¥406.1B (YoY -12.2%), Free Cash Flow was ¥105.3B, and total shareholder returns of ¥250.6B (Dividends ¥105.6B + Share buybacks ¥145.0B) were funded by net cash.
[Revenue] Revenue totaled ¥4165.6B (YoY +2.3%), a moderate increase. By segment, Life Sciences recorded ¥1118.2B (+11.9%)—double-digit growth driven by expanded demand for agrochemicals and pharmaceuticals and new product launches. Chemicals declined to ¥2149.9B (-1.7%); while high-value products such as semiconductor materials remained robust, decreased volumes of commodity products and pricing competition led to an overall decline. Foods were ¥831.1B (+0.5%), roughly flat, supported by recovery in commercial fats and stable household demand. Others declined to ¥198.6B (-14.7%) due to a lull in construction projects. Revenue composition: Chemicals 51.6%, Life Sciences 26.8%, Foods 19.9%, Others 1.7%, indicating continued concentration in Chemicals.
[Profitability] Operating Income was ¥416.1B (+1.5%), trailing revenue growth. Gross margin improved to 28.5% (prior year 28.2%, +0.3pt), but SG&A rose to ¥770.9B (+4.4%), outpacing sales growth and increasing SG&A ratio to 18.5% (prior year 18.1%). By segment, Life Sciences Operating Income was ¥98.2B (+26.4%, margin 8.8%), Chemicals ¥263.5B (-6.0%, margin 12.3%), Foods ¥43.6B (-0.6%, margin 5.2%). Non-operating income totaled ¥79.0B (mainly interest income ¥26.1B and dividends received ¥11.8B), while non-operating expenses were ¥67.5B (interest expense ¥35.9B and foreign exchange losses ¥37.1B), partially offset by foreign exchange gains of ¥12.6B, resulting in a net improvement of ¥11.5B in non-operating items. Ordinary Income reached ¥427.7B (+8.7%), exceeding operating-stage growth. Extraordinary income was ¥25.1B and extraordinary losses ¥24.1B, netting ¥1.0B—effectively neutral; highlights include gain on sales of investment securities ¥20.6B, settlement cost ¥10.7B, and impairment losses ¥3.8B. Income taxes were ¥111.6B (effective tax rate 26.0%). After deducting non-controlling interests of ¥38.5B, Net Income attributable to owners of the parent was ¥278.7B (+11.4%). In summary, Life Sciences growth and improved non-operating results drove revenue and profit increases, while SG&A growth and Chemicals’ profit decline constrained operating-stage expansion.
Chemicals: Revenue ¥2149.9B (-1.7%), Operating Income ¥263.5B (-6.0%), margin 12.3%. Demand for high-performance materials was solid, but volume declines and price competition in commodity products led to lower revenue and profit. High-value products such as semiconductor and battery materials expanded, but softness in commodity chemicals (e.g., polyolefin additives) weighed on overall results. Margin declined -1.3pt from 13.6% due to raw material price volatility and delayed pass-through.
Life Sciences: Revenue ¥1118.2B (+11.9%), Operating Income ¥98.2B (+26.4%), margin 8.8%, achieving substantial revenue and profit growth. New agrochemical product launches, expanded overseas deployment, and increased orders for pharmaceutical intermediates drove growth. Continued R&D investment and a shift to higher-value products contributed to improved profitability (up +1.0pt from 7.8%).
Foods: Revenue ¥831.1B (+0.5%), Operating Income ¥43.6B (-0.6%), margin 5.2%, essentially flat. Recovery in commercial fats demand supported results, but higher raw material costs and labor pushed costs up, and price pass-through was incomplete, reducing margin by -0.1pt from 5.3%.
Others: Revenue ¥198.6B (-14.7%), Operating Income ¥10.5B (+46.5%), margin 5.3%. Revenue declined due to fewer construction projects, but significant profit improvement resulted from logistics efficiency gains and focus on higher-margin projects.
[Profitability] Operating margin 10.0% (down -0.1pt from 10.1% prior year). Gross margin improved to 28.5% (up +0.3pt from 28.2%) due to pricing actions and mix effects. SG&A ratio rose to 18.5% (up +0.4pt from 18.1%) as SG&A grew +4.4%, compressing operating margin. Net margin was 6.7% (Net Income-to-Revenue 6.7% on parent company basis), up +1.4pt from 5.3%, aided by improved non-operating items and neutral extraordinary items. ROE was 6.8% (annualized approx. 7.5%), up +0.7pt YoY, driven by net margin improvement.
[Cash Quality] Operating Cash Flow / Net Income was 1.61x (Operating CF ¥406.1B ÷ Net Income ¥252.9B), indicating solid cash backing of profits, but down from 2.15x prior year. FCF was ¥105.3B (Operating CF ¥406.1B - Investing CF ¥300.8B), a large decline from ¥337.8B prior year, covering dividends of ¥105.6B only narrowly. Depreciation was ¥188.3B, giving EBITDA of ¥604.4B and OCF/EBITDA of 0.67x—low, reflecting working capital stagnation and reduced cash conversion efficiency.
[Investment Efficiency] Total asset turnover was 0.74x (Revenue ¥4165.6B ÷ Ending total assets ¥5599.9B), slightly below 0.75x prior year, pressured by higher inventory and receivables. Inventory turnover days were 146 days (Inventory ¥694.1B ÷ Daily sales ¥2978.6B/365), and Receivables turnover days were 102 days (Receivables ¥1167.7B ÷ Daily sales ¥4165.6B/365), both lengthening; CCC reached approximately 170 days.
[Financial Soundness] Equity Ratio was 66.4% (Net assets ¥3715.7B ÷ Total assets ¥5599.9B), improving +1.6pt from 64.8% due to retained earnings accumulation. Interest-bearing debt totaled ¥552.2B (Short-term borrowings ¥156.0B + Long-term borrowings ¥237.0B + Bonds ¥159.2B); with cash & deposits ¥965.4B, net cash was ¥413.2B, maintaining a net-debt-free position. Debt/EBITDA was 0.91x, low. Interest coverage was 11.6x (EBITDA ¥604.4B ÷ interest expense ¥35.9B + approx. ¥16B non-operating interest portion), indicating ample coverage. Current ratio was 307% (Current assets ¥3543.5B ÷ Current liabilities ¥1154.3B), showing very high short-term liquidity; Quick ratio was 246.9%, covering short-term liabilities with cash, marketable securities, and receivables.
Operating CF was ¥406.1B, down -12.2% YoY. Pre-tax profit was ¥428.8B; adding Depreciation ¥188.3B and equity-method adjustment -¥7.2B yielded cash flow before working capital changes of ¥524.4B. Working capital changes—Inventory increase -¥18.2B, Receivables increase -¥18.6B, Payables decrease -¥14.1B—strained cash, and tax payments -¥120.9B further reduced cash, resulting in a substantial decline from prior-year Operating CF ¥462.4B. Working capital expanded by roughly ¥50B, mainly due to inventory buildup and extended receivables collection associated with Life Sciences growth. Investing CF was -¥300.8B, led by Capital Expenditures -¥200.8B, Intangible asset investments -¥22.9B, net increase in short-term investment securities -¥32.9B and -¥32.0B, and acquisition of long-term investment securities -¥0.3B; partially offset by proceeds from sale of securities ¥26.8B and proceeds from sale of fixed assets ¥0.4B. Capex exceeded depreciation, focused on Life Sciences capacity expansion and renewal investments in Chemicals. Financing CF was -¥353.0B, driven by dividend payments -¥105.6B and share buybacks -¥145.0B, along with long-term debt repayments -¥73.9B, net reduction in short-term borrowings -¥31.4B, and bond redemptions -¥42.8B; partially offset by bond issuance ¥42.8B and long-term borrowings ¥39.1B. FCF was ¥105.3B, roughly covering dividends of ¥105.6B, but total returns ¥250.6B (dividends + buybacks) substantially exceeded FCF, necessitating use of cash on hand and net cash. Cash balance fell from opening ¥1077.7B to closing ¥878.8B (decline -¥198.9B); considering FX impact +¥39.9B and new consolidations +¥8.9B, the effective cash outflow was about ¥247.7B.
Earnings quality is high, with recurring operating profits comprising the bulk of profits; extraordinary items had a near-neutral net impact of ¥1.0B (Extraordinary income ¥25.1B - Extraordinary losses ¥24.1B). Non-operating income ¥79.0B was 1.9% of revenue (below 5%), primarily interest income ¥26.1B, dividends received ¥11.8B, equity-method gains ¥7.2B, and FX gains ¥12.6B—overall a healthy composition. Non-operating expenses ¥67.5B included interest expense ¥35.9B and FX losses ¥37.1B; FX effects were mixed, with net negative contribution of -¥24.5B. The gap between Ordinary Income ¥427.7B and Net Income ¥252.9B is explained by taxes ¥111.6B and non-controlling interests ¥38.5B; extraordinary items had minimal impact. Operating CF at 1.61x Net Income indicates good cash backing, but OCF/EBITDA at 0.67x is low, with working capital stagnation reducing accrual quality. Increases in inventory and receivables have introduced timing gaps between profit recognition and cash collection, raising potential inventory valuation write-down and receivables impairment risks. Depreciation ¥188.3B appears at appropriate levels, reflecting asset realities. Overall, operating profitability is strong and recurring profit structure intact, but rising working capital undermines cash conversion efficiency; normalizing inventory and receivables is key to improving earnings quality.
Full-year guidance: Revenue ¥4530.0B (YoY +8.7%), Operating Income ¥468.0B (YoY +12.5%), Ordinary Income ¥466.0B (YoY +8.9%), Net Income ¥288.0B (YoY +13.9%). First-half results were Revenue ¥4165.6B (progress 91.9%), Operating Income ¥416.1B (88.9%), Ordinary Income ¥427.7B (91.8%), indicating first-half progress substantially ahead of full-year plan at operating and ordinary stages, suggesting conservatism in full-year guidance. Full-year assumed operating margin is 10.3%, expecting +0.3pt improvement from first half 10.0%. Segment drivers include continued high growth in Life Sciences, mix improvement in Chemicals, and increased price pass-through in Foods. Containing SG&A growth to leverage operating leverage is a prerequisite for achieving the plan. FX assumptions and raw material price volatility could affect second-half performance, and upside to guidance exists given first-half results.
Dividend plan is Interim ¥52, Year-end forecast ¥60, Annual ¥112 (YoY +¥64). Payout ratio is 40.7% (Annual dividends ¥112B ÷ EPS forecast ¥294.30 × shares outstanding, approximate), within a sustainable range. Total dividend amount is approx. ¥105.6B, roughly covered by FCF ¥105.3B, but including share buybacks ¥145.0B, total return ratio is approx. 103.4% (Total return ¥250.6B ÷ Net Income ¥278.7B × mid-period weighted shares adjustment), exceeding profits. Share buybacks aim to improve capital efficiency; repurchased shares 5,910 thousand shares (ending treasury stock) represent about 58% of total returns. With net cash ¥413.2B and low leverage, short-term enhancement of returns does not impair financial soundness, but from next fiscal year onward, improvement in working capital and expanded FCF are prerequisites for sustainable total returns. DOE is approx. 3.5% (Dividends ¥105.6B ÷ Equity ¥3134.4B), indicating a balanced return policy aligned with ROE improvement.
Working capital efficiency deterioration: DSO 102 days, DIO 146 days, CCC 170 days—prolonged working capital with Inventory ¥694.1B (YoY +12.9%) and Receivables ¥1167.7B (YoY +6.1%) have depressed Operating CF/EBITDA to 0.67x. Inventory buildup from Life Sciences growth and slower receivables collection in Chemicals are main causes, presenting inventory valuation and bad-debt risks. If normalization does not occur, FCF may not cover dividends + buybacks, and continued drawdown of net cash could follow.
Chemicals market volatility: Chemicals account for 51.6% of revenue and 63.3% of Operating Income. First half showed Revenue -1.7% and Operating Income -6.0%. Naphtha prices and semiconductor market cycles affect demand and spreads for high-value products; intensified price competition in commodities also pressures margins. High segment concentration means deterioration in Chemicals could directly impair corporate results.
SG&A growth pressure on margins: SG&A rose to ¥770.9B (+4.4%), outpacing sales growth +2.3%, raising SG&A ratio to 18.5% (prior year 18.1%). Increases in labor and R&D are main drivers; if fixed-cost growth continues to outpace revenue, maintaining ~10% operating margin will be difficult. Cost control and full price pass-through are key to margin preservation.
Profitability & Returns
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 営業利益率 | 10.0% | 7.8% (4.6%–12.3%) | +2.2pt |
| 純利益率 | 6.1% | 5.2% (2.3%–8.2%) | +0.9pt |
Both operating margin and net margin exceed the manufacturing sector medians, placing profitability at the upper end within the industry.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| 売上高成長率（前年比） | 2.3% | 3.7% (-0.4%–9.3%) | -1.4pt |
Revenue growth lags the median, constrained by Chemicals’ decline. Life Sciences’ high growth supports the company but overall growth pace remains average within the sector.
※Source: Company aggregation
Life Sciences high growth and room for Chemicals margin improvement: Life Sciences sustained double-digit growth in the first half (Revenue +11.9%, Operating Income +26.4%), expected to remain a growth driver full-year. Continued overseas expansion and new product launches in agrochemicals and pharmaceutical intermediates support growth, and margin improved to 8.8% (prior 7.8%). Chemicals slowed in the first half (Revenue -1.7%, Operating Income -6.0%), but recovery in demand for semiconductor and battery materials and stabilization in commodity prices could support income improvement in the second half. Changes in segment mix and rising share of Life Sciences are key to medium-term margin improvement.
Normalization of working capital and sustainability of shareholder returns: First half showed extended working capital (DSO 102 days, DIO 146 days, CCC 170 days) and total returns ¥250.6B exceeding FCF ¥105.3B. Net cash ¥413.2B and low leverage support return capacity, but if working capital normalization fails, future total return levels (especially buybacks) may be adjusted. Optimizing inventory and shortening receivable collections to recover Operating CF/EBITDA to above 0.9x is a prerequisite for sustainable total returns. Dividend payout ratio 40.7% is healthy and the risk of cut appears low given net cash base.
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not constitute a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the Company from public financial statements. Investment decisions are your responsibility; consult a professional as needed.