Margins widen as sales climb
Asahi Kasei Corporation (TSE: 3407) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 5, 2026. Gross profit rose 20.0% to ¥580,388 million, outpacing a 10.3% rise in selling, general and administrative expenses to ¥414,947 million. Ordinary profit rose 52.1% to ¥161,380 million. Extraordinary items were much smaller than a year earlier: restructuring costs fell to ¥2,755 million from ¥36,231 million, while gains on investment securities fell to ¥2,984 million from ¥23,208 million. The company did not include segment detail in the filing, referring readers to a separate presentation.
German anti-infectives developer AiCuris Anti-infective Cures AG and five subsidiaries joined the consolidated group during the half. Spending of ¥131,681 million on acquiring newly consolidated subsidiaries and ¥107,694 million on property, plant and equipment took the investing cash outflow to ¥243,696 million, and the company also bought back 22,859,400 shares for ¥40,000 million. Operating cash flow was ¥94,951 million, against ¥134,771 million. Total assets rose 6.6% to ¥4,411,478 million, and the equity ratio eased to 47.3% from 50.5%.
Forecast and dividend raised
Asahi Kasei now expects FY3/2027 net sales of ¥3,422,000 million (+11.3%), operating profit of ¥290,000 million (+25.4%), ordinary profit of ¥283,000 million and net profit attributable to owners of ¥173,000 million (+8.9%), up from ¥3,254,000 million, ¥248,000 million and ¥160,000 million in its May forecast. It raised the annual dividend forecast to ¥48 from ¥44, paying ¥24 at the interim stage and planning ¥24 at year-end, against ¥42 for FY3/2026.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 1,689,609 | 1,486,368 | +13.7% |
| Gross profit (¥ million) | 580,388 | 483,639 | +20.0% |
| Operating profit (¥ million) | 165,441 | 107,454 | +54.0% |
| Ordinary profit (¥ million) | 161,380 | 106,068 | +52.1% |
| Net profit attrib. to owners of parent (¥ million) | 102,198 | 66,266 | +54.2% |
| Comprehensive income (¥ million) | 70,379 | 71,515 | -1.6% |
| EPS (¥) | 75.94 | 48.79 | +55.6% |
| Total assets (¥ million) | 4,411,478 | 4,137,943 | +6.6% |
| Net assets (¥ million) | 2,165,965 | 2,165,647 | +0.0% |
| Equity ratio | 47.3% | 50.5% | -3.2 pt |
| FY3/2027 guidance — revenue (¥ million) | 3,422,000 | — | +11.3% |
| FY3/2027 guidance — operating profit (¥ million) | 290,000 | — | +25.4% |
| FY3/2027 guidance — ordinary profit (¥ million) | 283,000 | — | +22.8% |
| FY3/2027 guidance — net profit (¥ million) | 173,000 | — | +8.9% |
| Annual dividend per share (¥) | 48.00 | 42.00 | +14.3% |
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.