Business Description

Kuraray Co., Ltd. sells and produces functional chemicals, textiles, medicines, and synthetic fibers. It has two segments: Vinyl Acetate, and Isoprene. Functional Materials, Fibers, and Textiles. Trading. Vinyl acetate is used to produce optical PVVA film, PVA resin, and an EVAL gas barrier. Isoprene is a synthetic rubber that produces isoprene, fine chemicals like GENESTAR, SEPTON, and Liquid Rubber.

Functional Materials sells CLARINO methacrylic and dental materials for medical companies. Fibers and Textiles offer KURALON and KURAFLEX as well as hook and loop fasteners and polyester staples. The Trading segment deals in the import and export of textiles as well as wholesaling. The Other segment deals with activated aqua, carbon, and engineering. Tokyo is the location of the Tokyo headquarters, which was established on June 24, 1926.

Key Financials

Revenue (US$ Mn)

• Kuraray Co., Ltd.’s annual revenue for 2020 was US$ 5,247 Mn, a -0.62% decrease from 2019
• The annual revenue generated by Kuraray Co., Ltd. in 2019 was US$ 5,280 Mn
• At an 18.77% increase from , Kuraray Co., Ltd.’s annual revenue of US$ 5,465 Mn was indexed in 2018
• Kuraray Co., Ltd. generated total revenue of US$ 4,602 Mn in 2017

 

Operating Income (US$ Mn)

• Kuraray Co., Ltd.’s operating income for 2020 was US$ 429 Mn, a -13.55% decrease from 2019
• The operating income generated by Kuraray Co., Ltd. in 2019 was US$ 497 Mn
• At a -10.56% decrease from , Kuraray Co., Ltd.’s operating income of US$ 596 Mn was indexed in 2018
• Kuraray Co., Ltd. generated an operating income of US$ 667 Mn in 2017

 

Net Income (US$ Mn)

• Kuraray Co., Ltd.’s net income for 2020 was US$ 25 Mn, a -238.55% decrease from 2019
• The net income generated by Kuraray Co., Ltd. in 2019 was US$ -18 Mn
• At a -36.07% decrease from , Kuraray Co., Ltd.’s net income of US$ 304 Mn was indexed in 2018
• Kuraray Co., Ltd. generated a net income of US$ 476 Mn in 2017

 

Operating Margin %

• 8% was the operating margin generated by Kuraray Co., Ltd. in 2020
• Kuraray Co., Ltd.’s operating margin for 2019 was 9%, a -13.76% decrease from 2018
• From 2017’s operating margins, Kuraray Co., Ltd. registered a -24.83% decrease in 2018, amounting to 11%
• An operating margin of 15% was generated in 2017 by Kuraray Co., Ltd.

 

Gross Margin %

• Kuraray Co., Ltd.’s gross margin for 2020 was 31%, a -2.87% decrease from 2019
• The gross margin generated by Kuraray Co., Ltd. in 2019 was 31%
• At a -7.54% decrease from , Kuraray Co., Ltd.’s gross margin of 32% was indexed in 2018
• Kuraray Co., Ltd. generated a gross margin of 35% in 2017

SWOT Analysis

Strengths

Strong market position

Kuraray is a world-renowned manufacturer of chemicals and resins/plastics. It has pioneered the development and commercialization of chemical fiber rayon. It employs its own technology in polymer chemistry, synthetic chemistry, and other methods to create resins, chemicals, and fibers for textiles.

The company’s top-selling products include PVA resin, PVA film for optical use, Genestar resin, Clarino, and Eval resin. Kuraray is also the number one in magic tape and dental materials in the country. The company is able to operate efficiently due to strong demand and wider geographical reach.