Kurabo <3106> announced its consolidated financial results for the second quarter of the fiscal year ending March 2025 (April-September 24th). Sales decreased by 1.1% year-on-year to 71.845 billion yen, operating profit increased by 9.4% to 4.241 billion yen, ordinary profit increased by 12.7% to 5.1 billion yen, and net profit attributable to parent company shareholders increased by 35.8% to 3.425 billion yen.

The revenue of the textile business decreased by 4.2% year-on-year to 23.65 billion yen, operating profit was 0.035 billion yen (a loss of 0.373 billion yen in the same period of the previous year). Yarn sales remained flat for domestic innerwear, while sales in Brazil and Thailand subsidiaries were strong, resulting in increased revenue. Textiles saw a decrease in orders for casual materials from domestic and Chinese subsidiaries, leading to a revenue decline. Although sales of textile products with the risk reduction management system "Smartfit" for hot climates increased, there was a decrease in orders for casual products, resulting in a decrease in revenue.

The revenue of the chemical products business increased by 11.4% to 32.592 billion yen, with operating profit increasing by 41.8% to 2.312 billion yen. Soft urethane saw increased orders for automotive interior materials, with a sluggish trend in the Chinese subsidiary but steady performance in the domestic market due to the recovery of automobile production. Functional resin products received increased orders for high-performance resins for semiconductor manufacturing equipment and strong orders for functional films for solar cells, resulting in increased revenue. Sales of residential building materials increased due to a rise in orders for precast concrete products for collective housing, despite sluggish sales of heat insulation materials. Non-woven fabrics remained at a similar level to the previous year.

The revenue of the environmental mechatronics business decreased by 27.9% to 8.866 billion yen, with operating profit decreasing by 34.9% to 1.052 billion yen. Electronics saw strong sales of liquid component concentration meters for the semiconductor industry, but a decrease in sales of wafer cleaning equipment in subsidiaries resulted in revenue decline. Engineering experienced sluggish sales of chemical supply equipment for the semiconductor industry, while exhaust gas treatment facilities performed well. Large industrial equipment projects at subsidiaries contributed to increased revenue. Biomedical equipment, including agitation deaeration equipment, showed stable performance, remaining at a similar level to the previous year. The transfer of all shares of a subsidiary engaged in manufacturing and sales of machine tools in the previous period also contributed to the decline in revenue and profit.

The revenue of the food and service business increased by 7.8% to 4.873 billion yen, but due to factors such as rising procurement costs, operating profit decreased by 20.1% to 0.217 billion yen. Food sales were sluggish for molded soup products but strong for instant noodle ingredients, leading to increased revenue. Hotel-related services saw increased revenue due to strong domestic travel and inbound demand, resulting in good performance for lodging and restaurants.

Regarding the real estate business, revenue from real estate leasing decreased by 1.3% to 1.862 billion yen. Operating profit also decreased by 4.4% to 1.186 billion yen, influenced by increased tax assessments.

For the full fiscal year ending in March 2025, they have maintained the upwardly revised consolidated performance forecast announced on August 7, with sales expected to increase by 1.8% to 154 billion yen, operating profit to increase by 4.5% to 9.6 billion yen, ordinary profit to increase by 6.0% to 10.8 billion yen, and net income attributable to parent company shareholders to increase by 11.3% to 7.5 billion yen. They have also announced a year-end dividend forecast for the fiscal year ending March 2025, with an increase of 30.00 yen per share to 90.00 yen, totaling 150.00 yen per year including an interim dividend of 60.00 yen.

Furthermore, the revenue from real estate leasing decreased by 1.3% to 1.862 billion yen. Operating profit also declined by 4.4% to 1.186 billion yen, due to a rise in tax assessments. For the full fiscal year ending March 2025, the company has maintained its upwardly revised consolidated performance forecast announced on August 7, with sales expected to increase by 1.8% to 154 billion yen, operating profit to increase by 4.5% to 9.6 billion yen, ordinary profit to increase by 6.0% to 10.8 billion yen, and net income attributable to parent company shareholders to increase by 11.3% to 7.5 billion yen. They have also announced a year-end dividend forecast for the fiscal year ending March 2025, with an increase of 30.00 yen per share to 90.00 yen, totaling 150.00 yen per year including an interim dividend of 60.00 yen.