Kuraray H1 Net Profit Plunges 54 Percent Sales Fall to 399.96 Billion Yen Price Hikes Announced for GENESTAR

Kuraray reported its 2025 half-year results with net sales of 399.96 billion yen (about 19.5 billion yuan), down 2.7% year-on-year, and net profit of 14.04 billion yen (about 680 million yuan), a sharp 53.9% decline. Operating income dropped by 42.2% to 26.26 billion yen, and recurring profit fell 51.7% to 21.28 billion yen.

Declining demand in Europe and China, costlier raw materials, and production disruptions, especially in the functional materials segment, contributed to the downturn. The VAM business, Kuraray’s largest, saw profit slide 32% as PVOH resin demand softened and competition intensified. Meanwhile, the isoprene segment narrowed its loss, buoyed by strong sales of GENESTAR™ heat-resistant polyamide resin for electronics and automotive applications.

Faced with soaring costs, Kuraray will raise GENESTAR™ polyamide resin prices by 200 yen/kg in Japan and $1.50/kg overseas starting September 2025. The new Thai plant, operational since 2023, now supports global supply of 26,000 tons annually.

Functional materials suffered from delayed shipments and U.S. production issues, with profits tumbling 55.2%. The fibers and textiles division slipped into a minor loss, hurt by stagnant European markets and EV inventory adjustments.