Message from the President
Dear Shareholders and Investors
In the interim period of fiscal 2026, the world economy held firm due mainly to AI-related investment, but the outlook remained uncertain as conditions in the Middle East deteriorated. Although the Japanese economy continued to gradually recover, concerns grew about stagnant demand. The US economy remained firm, underpinned by steady domestic demand, but the pace of growth was gradual. In Europe and China, economic growth remained low.
Amid these circumstances, consolidated operating results are as follows: net sales increased ¥31.1 billion year on year to ¥431.0 billion; operating income increased ¥2.6 billion year on year to ¥28.8 billion; and interim net income attributable to owners of the parent increased ¥0.2 billion year on year to ¥14.2 billion. Driven by efforts to adjust product prices in response to rising raw material and fuel costs, as well as the positive impact of the weaker yen, net sales for the interim period reached a record high.
Based on our interim performance and recent business conditions, we have revised the full-year forecast we announced on February 10, 2026, raising our sales forecast by ¥30 billion from the previous estimate of ¥850 billion to ¥880 billion. Please note that all profit forecasts remain unchanged from those announced in February.
The Kuraray Group is working on enhancing its business portfolio under its Medium-Term Management Plan “PASSION 2026.” Regarding our progress in the interim period of fiscal 2026, we decided to expand production capacity for reactivated carbon at our Columbus, Ohio, plant in the United States. In the medical business, the expansion of production capacity for dental materials at the Miyoshi Plant has been completed, and operations commenced. In addition, we have begun a joint study with DOWA ECO-SYSTEM CO., LTD. on a resource circulation business utilizing activated carbon regeneration. At the same time, as part of our downsizing and withdrawal initiatives, we steadily implemented measures, including the discontinuation of the acrylic block copolymer KURARITY™.
Our company celebrated its 100th anniversary on June 24, 2026. We would like to express our heartfelt gratitude to our shareholders and all those involved who have supported our Company over the years. To commemorate our 100th anniversary, the interim dividend was set at ¥32 per share, consisting of the regular dividend of ¥27 and a commemorative dividend of ¥5, as originally planned at the beginning of the fiscal year. We also expect the year-end dividend to be ¥32 per share, including the commemorative dividend. In addition to these dividends, when we include the share buybacks totaling ¥10 billion that were completed in March, the total return ratio is expected to be approximately 73%.
On behalf of the Kuraray Group, I would like to extend our gratitude for your continued understanding and generous support.
Hitoshi Kawahara, President and Representative Director