Konishi Q1 Operating Profit Jumps 53% as April Rush Buying Meets Price Revisions

A quarter with a clear, and partly temporary, cause

Konishi Co., Ltd. (TSE: 4956) published consolidated results for the three months to June 30, 2026 on July 27, 2026 under Japanese GAAP. Net sales rose 12.3% to ¥36,202 million, operating profit 52.5% to ¥3,257 million, ordinary profit 54.2% to ¥3,481 million and net profit 53.0% to ¥2,374 million, for earnings per share of ¥38.04 against ¥23.38.

The company names the cause plainly, and it is worth separating the durable part from the temporary. In April, rush demand arose from supply anxiety over the deteriorating situation in the Middle East. What followed is the durable part: price revisions reflecting higher raw-material costs, plus deliberate shipment control to prevent its own products going out of stock during a raw-material shortage — which let it keep supplying most of its range and hold the revenue trend up. Together those took the operating margin to 9.0% from 6.6%.

From this quarter Konishi also discloses EBITDA as a management indicator in its summary information, defined as operating profit plus depreciation plus goodwill amortisation. It came to ¥3,963 million, up 38.3% — though note that the prior-year growth rate for EBITDA is computed against a restated base reflecting a change in how real-estate rental income and expense are recorded.

Two segments up sharply, one down

Bond, the adhesives business that is 54.4% of external sales, grew revenue 9.3% to ¥19,702 million and segment profit 69.5% to ¥2,458 million — sales rose across household, housing-related, industrial-materials, construction and civil-engineering fields.

Chemical Products grew revenue 15.3% to ¥10,748 million and profit 67.4% to ¥499 million, on the same rush demand plus price revisions passing on higher purchase costs. Within it the company points to hybrid-vehicle materials in the automotive field and heat-dissipation materials and semiconductor- and capacitor-related products in the electrical and electronics field.

Construction was the exception: revenue rose 17.6% to ¥5,751 million on repair, renovation and reinforcement work in the infrastructure and existing-stock markets, but segment profit fell 24.7% to ¥281 million because progress on some projects slipped, pushing profit recognition into the second quarter and beyond. That is timing rather than deterioration, but it is the one line moving the wrong way.

Balance sheet, capital plans and an unchanged target

Total assets rose 3.2% from the March year-end to ¥144,063 million and net assets 3.4% to ¥91,881 million, leaving the equity ratio essentially unchanged at 63.5% against 63.4%. Comprehensive income nearly tripled to ¥4,215 million from ¥1,526 million.

The company is working through Medium-Term Management Plan 2027, drawn up in FY3/2025, under which it is strengthening new-customer development through product launches, concentrating on growth fields, and making what it describes as its largest-ever capital investment in production, logistics and digital transformation.

Guidance is unchanged. For the first half the company expects net sales of ¥72,000 million (+9.9%), operating profit of ¥5,350 million (+15.7%), ordinary profit of ¥5,600 million (+15.1%) and net profit of ¥3,350 million (+1.5%). For the full year it expects net sales of ¥150,000 million (+9.8%), operating profit of ¥11,500 million (+9.9%), ordinary profit of ¥11,900 million (+7.2%) and net profit of ¥8,190 million (+2.0%), for earnings per share of ¥131.21. The quarter delivered 28.3% of the full-year operating-profit target on 24.1% of the sales target — running ahead, but the guidance also assumes a 9.9% full-year gain against the 52.5% just reported. The annual dividend is held at ¥38.00, split ¥19.00 interim and ¥19.00 final.

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.