Notice Regarding Revisions to Earnings Forecasts and the Recording of Non-Operating Income and Non-Operating Expenses
DAIICHI KIGENSO KAGAKU-KOGYO CO.,LTD and the Group
Vietnam business, foreign-currency-denominated loans to the Vietnamese subsidiary, and the Company's foreign-currency-denominated assets and liabilities
Fluctuations in foreign exchange rates resulting from the yen's continued weakening after the beginning of 2026, compared with the assumed exchange rate of ¥151 to the US dollar used in the earnings forecast. In addition, derivative transactions were conducted to mitigate foreign exchange risk associated with foreign-currency-denominated loans to the Vietnamese subsidiary.
Foreign exchange gain of ¥609 million (non-operating income), allowance for doubtful accounts expense of ¥227 million (non-operating expense), valuation loss on derivatives of ¥301 million (non-operating expense), and net foreign exchange gain of ¥80 million. The changes to the earnings forecast are net sales of ¥450 million, operating income of ¥280 million, ordinary income of ¥850 million, and net income attributable to owners of the parent of ¥800 million.
The fourth-quarter consolidated accounting period of the fiscal year ending March 2026 (1 January–31 March 2026) and the full fiscal year ending March 2026 (1 April 2025–31 March 2026)
The consolidated earnings forecast for the full fiscal year ending March 2026 has been revised. Under the revised forecast, net sales are ¥35,750 million, operating income is ¥3,480 million, ordinary income is ¥3,250 million, and net income attributable to owners of the parent is ¥2,500 million. The year-end dividend forecast remains unchanged.
Company response
As a measure to address foreign exchange risk arising from uncertainty in future foreign exchange rates, the Company has introduced forward foreign exchange contracts for receivables arising from ordinary commercial transactions, in addition to the derivative transactions described above.
As a measure to address foreign exchange risk arising from uncertainty in foreign exchange rates, the Company has introduced forward foreign exchange contracts for receivables arising from ordinary commercial transactions, in addition to derivative transactions.
| Item | Details |
|---|---|
| Event name | Notice Regarding Revisions to Earnings Forecasts and the Recording of Non-Operating Income and Non-Operating Expenses |
| Subject Entity | DAIICHI KIGENSO KAGAKU-KOGYO CO.,LTD and the Group |
| Target Locations / Products | Vietnam business, foreign-currency-denominated loans to the Vietnamese subsidiary, and the Company's foreign-currency-denominated assets and liabilities |
| Cause | Fluctuations in foreign exchange rates resulting from the yen's continued weakening after the beginning of 2026, compared with the assumed exchange rate of ¥151 to the US dollar used in the earnings forecast. In addition, derivative transactions were conducted to mitigate foreign exchange risk associated with foreign-currency-denominated loans to the Vietnamese subsidiary. |
| Amount of Impact on Business Performance | Foreign exchange gain of ¥609 million (non-operating income), allowance for doubtful accounts expense of ¥227 million (non-operating expense), valuation loss on derivatives of ¥301 million (non-operating expense), and net foreign exchange gain of ¥80 million. The changes to the earnings forecast are net sales of ¥450 million, operating income of ¥280 million, ordinary income of ¥850 million, and net income attributable to owners of the parent of ¥800 million. |
| Accounting period in which recognized | The fourth-quarter consolidated accounting period of the fiscal year ending March 2026 (1 January–31 March 2026) and the full fiscal year ending March 2026 (1 April 2025–31 March 2026) |
| Impact on Earnings Forecast | The consolidated earnings forecast for the full fiscal year ending March 2026 has been revised. Under the revised forecast, net sales are ¥35,750 million, operating income is ¥3,480 million, ordinary income is ¥3,250 million, and net income attributable to owners of the parent is ¥2,500 million. The year-end dividend forecast remains unchanged. |
| Measures to prevent recurrence | As a measure to address foreign exchange risk arising from uncertainty in future foreign exchange rates, the Company has introduced forward foreign exchange contracts for receivables arising from ordinary commercial transactions, in addition to the derivative transactions described above. |
| Outlook | As a measure to address foreign exchange risk arising from uncertainty in foreign exchange rates, the Company has introduced forward foreign exchange contracts for receivables arising from ordinary commercial transactions, in addition to derivative transactions. |
Items this document does not state (16)
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.Net sales and operating income are expected to exceed the previous forecast as sales have remained firm. In addition, against the assumed exchange rate of ¥151 to the US dollar used in the earnings forecast, the yen continued to weaken after the beginning of 2026, resulting in foreign exchange gains on foreign-currency-denominated assets and liabilities.