Mitsubishi Chemical Corporation Full-Year Report 2023
Performance Overview
In the business environment in the fiscal year (April 1, 2022 – March 31, 2023; same hereafter) of the Mitsubishi Chemical Group (MCG), the global economy overall continued to modestly trend upward, as socio-economic activities return to normal. However, the risk of an economic slowdown heightened mainly reflecting monetary tightening by each country to control inflation, in addition to a rise in raw material and fuel prices and supply chain disruption.
Against this backdrop, sales revenue stood at ¥4,634.5 billion, an increase of ¥657.6 billion, or 16.5% compared to the previous fiscal year (April 1, 2021 – March 31, 2022; same hereafter). In the profit front, core operating income rose ¥53.3 billion, or 19.5%, to ¥325.6 billion. Operating income was down ¥120.5 billion, or 39.7%, to ¥182.7 billion chiefly due to the recording of impairment losses related to Chemicals segment and the Health Care segment under Special Items. Income before taxes decreased ¥122.4 billion, or 42.2%, to ¥168.0 billion. And net income attributable to owners of the parent dropped ¥81.1 billion, or 45.8% to ¥96.1 billion.
Performance Products Segment, Performance Products Domain
In comparison with the previous fiscal year, sales revenue increased ¥116.4 billion, to ¥1,252.7 billion and core operating declined ¥27.2 billion, to ¥51.5 billion.
In the Polymers and Compounds, sales revenue climbed. Although sales volumes declined, mainly for products used in automobile applications, MCG made progress in passing on a rise in raw material costs to selling prices, and owing to contribution from forex translation impact.
In the Films and Molding Materials, sales revenue increased. Although sales decreased reflecting a rapid retreat in demand for products used in display applications, and due to the transfer of the polycrystalline alumina fiber business in March 2022, there was positive impact mainly from a correction to selling prices accompanying a rise in raw material costs as well as positive forex impact.
In the Advanced Solutions, sales revenue grew underpinned chiefly by a correction to selling prices in tandem with a rise in raw material costs and positive forex impact, regardless of a decline in sales volume mainly for products used in display applications.
Meanwhile, core operating income in this segment declined. Although progress was made in passing on cost to selling prices, primarily due to impact from a rise in raw material costs, core operating income was mainly hindered by a decline in demand overall for products used in display applications and other applications as well and an increase in costs reflecting inflation
