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Earnings presentation materials4041Nippon Soda Co.,Ltd.Materials and Chemicals

Overview of Financial Results for the Second Quarter of the Fiscal Year Ending March 2027

In the second quarter of the fiscal year ending March 2027, net sales, operating income and ordinary income exceeded the year-earlier levels. The company raised its full-year forecast and also decided to increase its annual dividend forecast and acquire treasury shares.

Worth reading
57In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
21
¥100 million (increase in full-year operating profit forecast)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentation materialsSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥699.1 100 million+4.2%
Operating profit¥78.3 100 million+11.0%
Ordinary income¥109.8 100 million+12.7%
Net income¥68.7 100 million+1.2%
Results for the three months of the current quarterQuarterly trends in net sales and operating income are shown in a graph. For the second quarter of the fiscal year ending March 2027, net sales are shown at ¥35.7 billion and operating income at ¥3.73 billion.
Full-year earnings forecast
Net Sales
¥1,600 100 million
Operating profit
¥163 100 million
Ordinary income
¥217 100 million
Profit attributable to owners of the parent
¥173 100 million
Earnings per share
¥323 per share
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Price differenceShown in the chart
  • Volume varianceShown in the chart
  • Material price varianceShown in the chart
  • Foreign exchange effectsShown in the chart
  • OtherShown in the chart
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Assumed exchange rate for the second half (US dollar)¥158 /US$
  • Assumed exchange rate for the second half (euro)175 JPY/EUR
New initiatives
  • Upward revision to the full-year earnings forecast
  • Acquisition of treasury shares (¥2 billion; maximum 700,000 shares)
  • ¥5 increase each in the interim and year-end dividend forecasts
  • Completion of expanded production facilities for NISSO HPC pharmaceutical excipients
  • Absorption-type merger of 株式会社ニッソーグリーン
Key KPIsA metric the company considers important as a management benchmark.
  • First-half net income per share¥128.3 per share
    Year on year against the same period last year+3.4%
  • Overseas sales ratio (Agribusiness)67.6 %
    Year on year against the same period last year-5.4%
  • Equity ratio67.3 %
    Year on year against the same period last year+0.7%
  • D/E ratio0.26 Times
  • Exchange rate (¥/US dollar)¥159.2 /US$
    Year on year against the same period last year+9.2%
  • Exchange rate (¥/euro)184.7 JPY/EUR
    Year on year against the same period last year+9.2%
Segment results
Chemical Materials
Net Sales
¥188.3 100 million+5.0%
Operating profit
¥45.9 100 million+45.3%
Agribusiness
Net Sales
¥173.2 100 million-10.1%
Operating profit
¥7.5 100 million-58.0%
Trading & Logistics
Net Sales
¥243.6 100 million+15.0%
Operating profit
¥15.3 100 million+18.4%
Engineering
Net Sales
¥42.7 100 million-2.8%
Operating profit
¥10.9 100 million+53.8%
Eco Solutions
Net Sales
¥51.3 100 million+19.1%
Operating profit
¥3.7 100 million+191.8%
Capital expenditures
¥220 billions forecast for the fiscal year ending March 2027
Annual Dividend
Annual¥170 per share
Breakdown
Interim85
End of period85
Payout ratio
52.6
Acquisition of treasury shares
¥2 billion (maximum)
Number of Shares700,000 shares (maximum)
PeriodNovember 2026 to February 2027
Contents of this document
ItemDetails
Document typeEarnings presentation materials
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥699.1 100 million (YoY +4.2%)
Operating profit¥78.3 100 million (YoY +11.0%)
Ordinary income¥109.8 100 million (YoY +12.7%)
Net income¥68.7 100 million (YoY +1.2%)
Results for the three months of the current quarterQuarterly trends in net sales and operating income are shown in a graph. For the second quarter of the fiscal year ending March 2027, net sales are shown at ¥35.7 billion and operating income at ¥3.73 billion.
Full-year earnings forecastNet Sales ¥1,600 100 million / Operating profit ¥163 100 million / Ordinary income ¥217 100 million / Profit attributable to owners of the parent ¥173 100 million / Earnings per share ¥323 per share
Segment resultsChemical Materials Net Sales ¥188.3 100 million (YoY +5.0%) / Operating profit ¥45.9 100 million (YoY +45.3%) / Agribusiness Net Sales ¥173.2 100 million (YoY -10.1%) / Operating profit ¥7.5 100 million (YoY -58.0%) / Trading & Logistics Net Sales ¥243.6 100 million (YoY +15.0%) / Operating profit ¥15.3 100 million (YoY +18.4%) / Engineering Net Sales ¥42.7 100 million (YoY -2.8%) / Operating profit ¥10.9 100 million (YoY +53.8%) / Eco Solutions Net Sales ¥51.3 100 million (YoY +19.1%) / Operating profit ¥3.7 100 million (YoY +191.8%)
Breakdown of Factors Affecting the ChangeFactors Price difference / Amount Shown in the chart, Factors Volume variance / Amount Shown in the chart, Factors Material price variance / Amount Shown in the chart, Factors Foreign exchange effects / Amount Shown in the chart, Factors Other / Amount Shown in the chart
Key KPIsIndicator name First-half net income per share / Value ¥128.3 per share / Year on year against the same period last year ¥3.4 per share, Indicator name Overseas sales ratio (Agribusiness) / Value 67.6 % / Year on year against the same period last year -5.4 %, Indicator name Equity ratio / Value 67.3 % / Year on year against the same period last year 0.7 %, Indicator name D/E ratio / Value 0.26 Times / Year on year against the same period last year Not disclosed, Indicator name Exchange rate (¥/US dollar) / Value ¥159.2 /US$ / Year on year against the same period last year ¥9.2 /US$, Indicator name Exchange rate (¥/euro) / Value 184.7 JPY/EUR / Year on year against the same period last year 9.2 JPY/EUR
Assumptions Underlying the Business OutlookItem Assumed exchange rate for the second half (US dollar) / Value ¥158 /US$, Item Assumed exchange rate for the second half (euro) / Value 175 JPY/EUR
Annual DividendAnnual ¥170 per share / Breakdown Interim 85 / End of period 85
Payout ratio52.6
Acquisition of treasury sharesAmount ¥2 billion (maximum) / Number of Shares 700,000 shares (maximum) / Period November 2026 to February 2027
Capital expenditures¥220 billions (forecast for the fiscal year ending March 2027)
New initiativesUpward revision to the full-year earnings forecast, Acquisition of treasury shares (¥2 billion; maximum 700,000 shares), ¥5 increase each in the interim and year-end dividend forecasts, Completion of expanded production facilities for NISSO HPC pharmaceutical excipients, Absorption-type merger of 株式会社ニッソーグリーン
Items this document does not state (14)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company cited increased sales of Chemical Materials, Trading & Logistics and Eco Solutions, a weaker yen based on the average exchange rate, and higher equity-method investment income. Meanwhile, the Agribusiness segment reported lower sales and income due to extreme weather, intensifying competition from generic agricultural chemicals and declining export sales. The reasons cited for raising the full-year forecast were expected firm sales in Chemical Materials and Trading & Logistics, an assumed weaker yen and higher equity-method investment income.

How to read this page

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Overview of Financial Results for the Second Quarter of the Fiscal Year Ending March 2027 | Nippon Soda Co.,Ltd. (4041) timely disclosure | Komori