Weak Demand, Adverse Weather and Inventory Adjustments in Overseas Markets

「In Latin America, herbicides and fungicides remained firm in Brazil owing to the impact of heavy rainfall, but sales at Sipcam Nichino Brasil S.A. declined year on year because sales of higher-priced products stagnated as agricultural commodity prices fell. In Asia, sales in India declined year on year owing to the normalization of distribution inventories and delays in the arrival of the monsoon.」

「As a result, total overseas sales exceeded the prior-year period.」

「Meanwhile, although farmers' economic circumstances remained difficult and crop protection product prices continued at low levels in the global market, conditions improved in local-currency terms as weather conditions recovered in many regions and opportunities to use crop protection products increased with the expansion of planted acreage.」

「In overseas agrochemical sales, sales of the herbicide pyraflufen-ethyl to Canada remained strong in North America, while sales of the acaricide fenpyroximate for fruit trees also remained strong due to high mite incidence caused by continued dry weather in some regions. In Latin America, Sipcam Nichino Brasil S.A.'s sales in Brazil increased year on year as distribution inventories were brought to appropriate levels. In Europe, sales of flubendiamide technical material to Bayer increased, while sales of pyraflufen-ethyl for fruit trees and potatoes and the acaricide fenpyroximate for fruit trees remained strong. In Asia, sales in India remained strong, mainly to industry peers. As a result, total overseas sales exceeded the prior-year period.」

「The global agrochemical market had been expanding in recent years, driven by increased demand in the Americas and elsewhere. However, in 2024, the market contracted from the prior year because many regions were affected by adverse weather and prices fell sharply in major regions as distribution inventories increased for certain products, including widely used non-selective herbicides.」

「In overseas agrochemical sales, sales in North America increased, partly because sales of pyraflufen-ethyl to Canada remained strong amid increased demand for herbicides due to heavy rainfall. In Europe, although sales of flubendiamide technical material to Bayer declined, herbicide sales remained strong in the Benelux countries, the United Kingdom and elsewhere due to heavy rainfall, increasing Nichino Europe Co., Ltd.'s sales. In Latin America, in Brazil, the world's largest agrochemical market, increased demand for fungicides due to heavy rainfall and efforts to develop new applications for proprietary products proved effective, but sales to industry peers struggled due to intensifying competition and other factors, resulting in lower sales. In Asia, sales in India remained weak as heavy rainfall in some regions reduced opportunities to apply agrochemicals, while sales also struggled due to distribution inventories remaining from the prior year's drought and other factors. As a result, total overseas sales fell below the prior-year period.」

「In overseas agrochemical sales, although India was affected by adverse weather, including a delayed rainy season, the sales strategy to promote proprietary products such as the horticultural insecticides tolfenpyrad and pyrifluquinazon proved effective, and Nichino India Pvt. Ltd.'s sales remained firm. In Europe, Nichino Europe Co., Ltd.'s sales increased due to the expanded use of the fungicide flutolanil and other factors. In contrast, in Brazil, the world's largest agrochemical market, Sipcam Nichino Brasil S.A.'s sales struggled due to the impact of falling prices for some generic products amid intensifying competition and other factors. In North America, low pest incidence resulting from continued cold weather depressed demand for insecticides, including the acaricide fenpyroximate, causing Nichino America Inc.'s sales to struggle. As a result, despite the yen continuing to weaken against foreign currencies, total overseas sales fell below the prior-year period.」

「In overseas agrochemical sales, Sipcam Nichino Brasil S.A.'s sales increased in Brazil, the world's largest agrochemical market, as heavy rainfall expanded demand for sugarcane herbicides and other factors. In Asia, although India was affected by adverse weather, including a delayed rainy season, the sales strategy to promote proprietary products such as the horticultural insecticides tolfenpyrad and pyrifluquinazon proved effective, and Nichino India Pvt. Ltd.'s sales remained firm. In Europe, use of the potato herbicide pyraflufen-ethyl declined due to drought, causing Nichino Europe Co., Ltd.'s sales to struggle. In North America, where cold weather continued, low pest incidence reduced demand for insecticides, including the acaricide fenpyroximate, causing Nichino America Inc.'s sales to struggle. As a result, despite the yen continuing to weaken against foreign currencies, total overseas sales fell below the prior-year period.」

「In overseas agrochemical sales, Sipcam Nichino Brasil S.A.'s sales increased in Brazil, the world's largest agrochemical market, as heavy rainfall expanded demand for sugarcane herbicides and other factors. In contrast, in North America, where cold weather continued, low pest incidence reduced demand for insecticides, causing Nichino America Inc.'s sales to struggle. In Asia, Nichino India Pvt. Ltd.'s sales declined because adverse weather, including a delayed rainy season, reduced spraying opportunities in India. As a result, total overseas sales fell below the prior-year period.」

「Although North America was affected by adverse weather, including drought in some regions, the overall market increased as soybean and cotton acreage expanded. In Latin America, the agrochemical market expanded in Brazil as hot and humid weather continued, resulting in increased pest incidence. In Asia, agrochemical demand increased in Southeast Asia and other regions where weather remained stable. In contrast, the overall European market turned to decline due to adverse weather, including high summer temperatures and drought.」

「In overseas agrochemical sales, demand in Brazil, the world's largest agrochemical market, was trending upward, and increased demand for sugarcane herbicides and other factors increased Sipcam Nichino Brasil S.A.'s sales. In North America, Nichino America Inc.'s sales increased as sales of the insecticide buprofezin remained strong due to a high incidence of whiteflies in cotton and other factors. In Europe, Nichino Europe Co., Ltd.'s sales increased as sales of the herbicide pyraflufen-ethyl for potatoes remained strong. Sales of flubendiamide technical material to Bayer also remained strong. In Asia, technical extension activities were conducted in India to promote sales of the rice insecticide benzpyrimoxan. As a result, total overseas sales exceeded the prior-year period.」

「In overseas agrochemical sales, demand in Brazil, the world's largest agrochemical market, was trending upward, increasing Sipcam Nichino Brasil S.A.'s sales. In North America, sales of the fungicide flutolanil for peanuts increased. In Europe, demand for the herbicide pyraflufen-ethyl increased as it gained market share following the expiration of registrations for competing products and other factors, increasing Nichino Europe Co., Ltd.'s sales. Sales of flubendiamide technical material to Bayer also remained strong. In Asia, sales of the horticultural insecticide tolfenpyrad for cotton and chili peppers remained strong in India. As a result, total overseas sales exceeded the prior-year period.」

「In overseas agrochemical sales, mite incidence in North America was higher than usual as warm weather continued, driving demand for the acaricide fenpyroximate and increasing Nichino America, Inc.'s sales. In Europe, expanded sales of the herbicide pyraflufen-ethyl, which gained market share against competing products, increased Nichino Europe Co., Ltd.'s sales. In Brazil, where agrochemical demand was trending upward, the sales strategy for sugarcane herbicides proved effective, among other factors, increasing Sipcam Nichino Brasil S.A.'s sales. Total overseas sales therefore exceeded the prior-year period.」

「Turning to the main sales regions of our group, the agrochemical market remained firm in North America, where warm weather continued. In Latin America, demand in Brazil increased due to expanded soybean and corn acreage. In Asia, demand grew in Southeast Asia and other regions where weather conditions improved. In Europe, the overall market turned to growth as distribution inventories from prior years were drawn down.」

「In overseas agrochemical sales, the drawdown of distribution inventories from prior years progressed in Asia, supporting strong sales of the insecticide flubendiamide in India and the rice fungicide isoprothiolane in China.」

「In Europe, Nichino Europe Co., Ltd.'s sales struggled due to adverse weather and the impact of distribution inventories.」

「In overseas agrochemical sales, Nichino India Pvt. Ltd.'s performance struggled, partly because production was temporarily halted due to the spread of COVID-19. In contrast, in North America, where warm and dry weather continued, mite incidence was higher than usual, driving demand for the acaricide fenpyroximate and increasing Nichino America, Inc.'s sales. In Europe, expanded sales of the herbicide pyraflufen-ethyl, which gained market share against competing products, increased Nichino Europe Co., Ltd.'s sales. In Brazil, where agrochemical demand was recovering, the sales strategy for sugarcane herbicides proved effective, among other factors, increasing Sipcam Nichino Brasil S.A.'s sales. As a result, total overseas sales exceeded the prior-year period.」

「In North America, where weather conditions were favorable, the agrochemical market remained firm. In Latin America, demand in Brazil increased due to expanded soybean and corn acreage. In Asia, demand increased in China, where warm weather continued, and in India, where the monsoon brought abundant rainfall. In contrast, the European market struggled as a whole due to adverse weather and the impact of distribution inventories from prior years.」

「In overseas agrochemical sales, Brazil, the world's largest market, saw agrochemical demand trend toward recovery, but Sipcam Nichino Brasil S.A.'s sales remained sluggish due to adverse weather, intensifying competition and other factors. In North America, Nichino America, Inc.'s sales struggled because of low pest incidence and declining cotton acreage. In India, where weather conditions during the rainy season were favorable, demand for herbicides at Nichino India Pvt. Ltd. increased, while sales of the insecticide flubendiamide, marketed domestically as Phoenix, and the insecticide tolfenpyrad, marketed domestically as Hachi-Hachi and launched this fiscal year, were strong, resulting in higher sales. In Europe, Nichino Europe Co., Ltd.'s sales increased as sales of the potato haulm desiccant pyraflufen-ethyl, marketed domestically as Desican, and flutolanil, marketed domestically as Moncut, grew.」

「In overseas agrochemical sales, shipments accelerated amid concerns about the impact of the COVID-19 pandemic on distribution. By region, Nichino America, Inc.'s sales struggled in North America due to a decline in cotton acreage and low pest incidence. In Brazil, although agrochemical demand was recovering, Sipcam Nichino Brasil S.A.'s sales remained sluggish due to intensifying competition and other factors.」

「However, sales at Sipcam Nichino Brasil S.A. remained sluggish in Brazil, the world’s largest market, due to intensifying competition and other factors.」

「In overseas pesticide sales, sales in North America remained strong. Sales in India also increased as weather conditions, including rainfall in the latter half of the rainy season, were favorable. Meanwhile, sales in Brazil remained sluggish due to intensifying competition.」

「In overseas pesticide sales, sales at Sipcam Nichino Brasil S.A. increased following a recovery in demand in Brazil, the world’s largest market. In North America, however, sales at Nichino America, Inc. fell below the same period of the previous year, partly due to unfavorable weather. In India, low rainfall in the latter half of the rainy season delayed planting and weakened pesticide demand, causing sales at Nichino India Pvt. Ltd. to remain sluggish. As a result, total overseas sales fell below the same period of the previous year.」

「In overseas pesticide sales, sales at Sipcam Nichino Brasil S.A. increased following a recovery in demand in Brazil, the world’s largest market. Meanwhile, sales remained sluggish in South Korea and China, major Asian markets, due to low incidences of pests and diseases and the impact of distribution inventories. In India, low rainfall in the latter half of the rainy season delayed planting and weakened pesticide demand, causing sales at Nichino India Pvt. Ltd. to remain sluggish. As a result, total overseas sales fell below the same period of the previous year.」

「In Asia, sales remained sluggish due to unfavorable weather and inventory adjustments from prior years resulting from low incidences of pests and diseases, and total overseas sales fell below the same period of the previous year.」

「In Asia, although the Indian market remained resilient, markets in some regions, including China and Vietnam, have weakened due in part to low incidences of pests and diseases.」

「Although sales remained sluggish in some regions, including Vietnam, due to low incidences of pests and diseases and increased distribution inventories, sales of internally developed products in Europe remained firm. In addition, sales at Sipcam Nichino Brasil S.A. increased because the timing of recognition of its results changed following a change in its fiscal year-end. As a result, total overseas sales exceeded the same period of the previous year.」

「Although sales struggled in some regions, including Vietnam, due to low incidences of pests and diseases and increased distribution inventories, sales of the Japanese standalone business grew on stronger demand in Europe for internally developed products. In addition, sales at Sipcam Nichino Brasil S.A. increased because the timing of recognition of its results changed following a change in its fiscal year-end. As a result, total overseas sales exceeded the same period of the previous year.」

「In overseas pesticide sales, sales in the Americas and Asia remained strong.」

「In overseas pesticide sales, sales in the Americas and Asia remained strong. In North America, sales of Moncut, a core fungicide, and ET, a cotton defoliant, for Nichino America, Inc. remained strong. In addition, total overseas sales exceeded the same period of the previous year because the results of Sipcam Nichino Brasil S.A. were included.」

「Pesticide demand in overseas markets also remained sluggish, partly due to excess distribution inventories in South American markets.」

「In overseas pesticide sales, sales in the Americas remained strong.」

「Sales remained sluggish in the Americas and in major Asian markets such as India and Vietnam, due in part to low incidences of pests and diseases and inventory adjustments from prior years resulting from unfavorable weather.」

「In overseas pesticide sales, sales in the Americas and Asia remained sluggish due to low incidences of pests and diseases and inventory adjustments from prior years resulting from unfavorable weather.」