As a corporate group that contributes to a sustainable society, the Carlit Group will continue to meet new challenges as a united team.
I would like to take this opportunity to thank our shareholders for your ongoing support.The Group's fiscal year 2024 (April 1, 2024 to March 31, 2025) has come to an end, and so we are reporting here an overview of our financial results and our planned development of operations going forward.
Review of operations for the fiscal year ending March 31, 2025
In the fiscal year ended March 31, 2025, net sales were ¥36,914 million, operating profit was ¥3,046 million, ordinary profit was ¥3,320 million, and profit attributable to owners of parent was ¥2,570 million. We look back on an overall solid market environment in FY2024.
In the Chemicals segment, sales of sodium chlorate, used in the bleaching process of paper pulp, ammonium perchlorate, a raw material for rocket solid propellants, and electrolytes and conductive polymers for electronic components were strong. However, the silicon wafer field was affected by customers' production and inventory adjustments, and the bottling segment was affected by a decline in production volume, resulting in a decrease in earnings. Even in business segments and fields where sales were strong, profit margins were affected by rising labor and energy costs and other factors, resulting in consolidated operating income of 3.04 billion yen for FY2024, not reaching the previous year's level.
Although we were able to achieve the initial operating income target of 3 billion yen for the second consecutive year under the Challenge 2024 medium-term management plan, which is now in its final year, we are now halfway to our new operating income target of 3.8 billion yen.
Consolidated Financial Highlights (Millions of yen)
-
-
Net sales
-
36,914
（＋0.9% YoY）
-
-
-
Operating profit
-
3,046
（－9.1% YoY）
-
-
-
Ordinary profit
-
3,320
（－7.8% YoY）
-
-
-
Profit attributable
to owners of parent -
2,570
（－1.1% YoY）
-
Initiatives and Results of the Medium-Term Management Plan "Challenge 2024"
For the medium-term management plan "Challenge 2024," the management policy was to "enhance corporate value by optimizing the business portfolio," and five strategies were set forth.
With regard to Strategy 1, "Accelerate Growth Businesses," the slowdown in market conditions in the silicon wafer and electronic materials fields, which had been designated as growth areas, delayed the deployment and development of high value-added products, forcing us to revise our plans.
With regard to Strategy 2, "Expansion of R&D," the Company has been working to improve efficiency by narrowing the number of development fields to half, and has promoted initiatives that will lead to the new medium-term management plan, including the establishment of three research centers in line with the business portfolio.
With regard to Strategy 3, "Improve Profitability of Existing Businesses," we achieved our initial target of 3 billion yen in operating income, but we are halfway to achieving our goal of improving profitability and profitability.
With regard to Strategy 4, "Advance ESG Management," we are promoting and executing various initiatives, such as acquiring certification as a corporation with excellent health management and introducing solar power generation systems.
With regard to Strategy 5, "Restructuring of Business Infrastructure," in addition to expanding the IT environment, we have reorganized into a business holding company structure through the merger of three companies: Carlit Holdings Corporation, Carlit Japan Corporation, and Silicon Technology Corporation.
As a result of these five strategies and the promotion of business portfolio-conscious management, operating income exceeded 3 billion yen for the second consecutive year, and we believe that our profit-oriented approach has been realized.
In terms of capital investment, we steadily implemented the renewal of aging facilities in existing businesses while starting construction to increase production of ammonium perchlorate.
Overall, the previous medium-term management plan was successful in building a structure to earn operating income in the 3 billion yen range in existing businesses, and at the same time, we were able to start investments that will lead us to a new stage of growth.
Forecasts for the fiscal year ending March 31, 2026
In FY2025, both sales and profits are expected to increase compared to FY2024. In the Chemicals segment, although the semiconductor cycle is on the road to recovery, the silicon wafer field is not expected to recover until the second half of FY2025 or later, as customers are making gradual progress in digesting their small-diameter silicon wafer inventories. On the other hand, sales of automotive products and basic chemical-related products are expected to remain steady as in the previous fiscal year. The bottling segment will incur expenses for periodic repair work to be conducted in FY2025, but the scale of expenses is expected to be the same as in previous years, and sales are expected to remain firm. Sales in the metal processing segment and the engineering services segment are expected to be firm as in the previous year, in line with domestic economic trends.
Forecasts of consolidated financial results for the fiscal year ending March 31, 2026 (Millions of yen)
*This table can be scrolled horizontally.
| Net sales | Operating profit | Ordinary profit | Profit attributable to owners of parent | |
|---|---|---|---|---|
| 1st half | 18,500 | 1,100 | 1,200 | 800 |
| Full year | 39,000 | 3,100 | 3,350 | 2,700 |
Vision for 2035
Based on the Group's management philosophy of "For Confidence and Infinite Challenges," and looking ahead to the long term, we have determined our Vision for 2030: "Supporting happy lifestyles by combining the power of 'chemicals' and 'technology' to contribute to a sustainable society." In addition, we have introduced new business portfolio management, promoting strategies appropriate to each area, with the aim of achieving "profitable growth."
Medium-term management plan "Challenge 2027"
restructured the "Development Area" and "Base Area" and newly established the "Priority Area." The Priority Area encompasses the characteristics of both core businesses that are expected to further expand profits and developmental businesses anticipated to transition into the Focus Area.
Additionally, we have formulated an investment plan suitable for "investment promotion." The total capital investment during the medium-term management plan period is set at ¥21 billion. Notably, we plan to allocate ¥9 billion to increase production of ammonium perchlorate in the Priority Area and to establish new manufacturing facilities for solid propellants for space and defense applications. Moving beyond pilot plants, we aim to invest in full-scale production facilities to achieve the manufacturing and mass production of solid propellants. With an eye on the future expansion of the space development market and the growing defense needs to protect Japan's skies, we will focus our efforts on the Priority Area.
In addition, "Challenge 2027" includes plans for a "Research and Development Strategy," "Human Resource Strategy," and "Financial Strategy." By executing and achieving the various initiatives in this medium-term plan, we will implement a balanced approach to growth investments, employee returns, and shareholder returns.
As a company with over 100 years of history, we are committed to building the foundation for the next 100 years. Guided by our management philosophy, "For Confidence and Infinite Challenges," we will continuously strive to create a new Carlit.