DIC Reports Consolidated 1Q 2025 Financial Results

DIC Corporation reported its consolidated financial results for the three months ended March 31, 2025. In the three months ended March 31, 2025, DIC Corporation’s consolidated net sales increased 2.5%, to ¥262.1 billion ($1.81 billion). Operating income rose 54%, to ¥13.06 billion ($90 million). “In the three months ended March 31, 2025, consolidated net sales rose 2.5%, to ¥262.1 billion. Looking at key global economies in recent months, the outlook in the Americas and Europe is showing heightened uncertainty, as consumer spending and other key indicators weaken amid concerns regarding the imposition of increased tariffs, while in the People’s Republic of China (PRC) a protracted real estate slump and trade friction with the United States is casting a cloud over consumer spending and investment trend forecasts. Against such a backdrop, demand trends in core customer industries diverged in the period under review,” DIC reported. “Operating income advanced 54.0%, to ¥13.1 billion. This was due mainly to higher sales in the Color & Display segment, bolstered by a recovery in market conditions, as well as to a return to profitability overseas after an operating loss in the corresponding period of the previous fiscal year, as ongoing structural reforms in the pigments business in the United States and Europe, which pushed down costs,” the report added. Packaging & Graphic segment sales declined 0.3%, to ¥134 billion ($920 million). Segment operating income declined 1.1%, to ¥6.7 billion ($46 million). “Segment sales slipped 0.3%, to ¥134.0 billion. On a local currency basis, however, sales rose 0.3%. In the area of packaging inks, used chiefly on packaging for food products, sales declined in Asia, as both shipments and sales prices faced an uphill battle as a result of various factors, including sluggish market conditions and pricing competition. Nonetheless, overall sales of these products were up, bolstered by increases in Japan, as well as in the Americas and Europe, thanks to efforts to adjust sales prices. Sales of publication inks, which center on inks for commercial printing and news inks, fell, with dwindling demand pushing down shipments worldwide, notably in the Americas and Europe. Sales of jet inks, used in digital printing, advanced significantly, as shipments expanded, mainly for commercial printing applications, in line with market growth underpinned by a continuing shift to digital printing,” DIC reported. “Segment operating income edged down 1.1%, to ¥6.7 billion. On a local currency basis, however, operating income was up 4.3%. Operating income in Japan decreased, as steps taken to modify sales prices for packaging inks and publication inks were insufficient to counter elevated costs.” Color & Display segment sales increased 8.6%, to ¥63.5 billion ($440 million). The segment reported an operating gain of ¥2.8 billion ($19 million), ahead of the loss reported in 1Q 2024. “Segment sales rose 8.6%, to ¥68.9 billion. Sales of pigments for coatings expanded, notwithstanding deteriorating shipments, thanks to efforts to improve the product mix and revise product prices,” DIC noted. “The segment reported operating income of ¥2.8 billion, as sales remained steady amid a market recovery and ongoing structural reforms in the pigments business in the United States and Europe helped trim costs, underpinning a return to profitability overseas.”