Worth reading
81Important
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
135
¥100 million (amount of the upward revision to the full-year operating profit forecast)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationSecond quarter of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,725 100 million+19.0%
Operating profit¥363 100 million+72.0%
Ordinary income¥363 100 million+76.0%
Net income¥327 100 million+117.0%
Selling, general and administrative expenses¥771 100 million
Gross Profit Margin
Rate19.8%
Year-on-year change (points)Improved by 0.9 percentage points
Operating profit margin
Rate6.3%
Year-on-year change (points)Improvement of 2.0 percentage points
Results for the three months of the current quarter
Net Sales¥292.8 billion, up 20.8% year on year
Gross profit¥58.2 billion, up 25.2% year on year
Operating profit¥19.3 billion, up 78.6% year on year
Full-year earnings forecast
Net Sales¥1,085.0 billion
Gross profit¥215.0 billion
Operating profit¥58.5 billion
Ordinary income¥58 billion
Profit attributable to owners of the parent¥48.0 billion
ROE10.8%
EPS¥118.2
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
ConsolidatedNet sales 57%, gross profit 57%, operating profit 81%, ordinary profit 81%, net profit attributable to owners of the parent 95%
MaterialsNet sales 55%, gross profit 56%, operating profit 65%
ElectronicsNet sales 50%, gross profit 50%, operating profit 53%
Life SciencesNet sales 50%, gross profit 51%, operating profit 73%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The first half tracked above expectationsBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Consolidated operating profitUp ¥15.2 billion year on year
Reduction in retirement benefit expense from amortization of actuarial differences¥2.2 billion increase in profit
Foreign exchange impactGross profit ¥5.4 billion, operating profit ¥1.9 billion
Materials operating profitUp ¥5.8 billion
Electronics operating profitUp ¥4.1 billion
Life Sciences operating profitup ¥2.9 billion year on year
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
US dollar exchange rateAverage during the period: ¥157.2
RMB exchange rateAverage during the period: ¥23.4
Foreign-exchange sensitivityIf the yen depreciates by ¥1, the impact on operating profit is approximately ¥100 million for the US dollar and approximately ¥500 million for the RMB
Second-half assumptionsFewer operating days due to the Lunar New Year and other factors, risk of a market downturn, Christmas holidays and scheduled maintenance, and additional costs including personnel and R&D expenses
New initiatives
- Opened the IBIC biotechnology research institute in San Diego, United States
- Integrated the food sales business and launched Nagase Food Solutions in July 2026
- Established CVC Fund II, with total fund formation of ¥2.8 billion
- Established regional headquarters companies for Greater China and ASEAN
- Plans to fully commercialize the sheet-form encapsulant a-SMC for advanced semiconductors in fiscal 2027
Key KPIsA metric the company considers important as a management benchmark.
- ROE10.8%
- EPS118.2 YenYear on year against the same period last yearExpected to grow 50% from fiscal 2025
- ROIC (consolidated)6.7%Year on year against the same period last year5.6% in fiscal 2025
- EBITDA (consolidated)¥805 100 millionYear on year against the same period last year¥64.3 billion in fiscal 2025
- Equity ratio47.7%Year on year against the same period last yearDown 1.1 percentage points year on year
- NET D/E ratio0.40 xYear on year against the same period last yearUp 0.05 from the end of March 2026
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Sales volume of resins for electrical and electronic equipment was at the same level as in the previous fiscal year. A systematic breakdown of other customer traffic, average spend per customer, sales volumes and other metrics: Not disclosedSegment results
MaterialsNet sales ¥290.5 billion (up 19.6% year on year), gross profit ¥45.7 billion (up 23.4%), operating profit ¥16.0 billion (up 57.6%)
ElectronicsNet sales ¥100.9 billion (up 19.2%), gross profit ¥27.0 billion (up 24.2%), operating profit ¥11.1 billion (up 58.8%)
Life SciencesNet sales ¥181.0 billion (up 19.1%), gross profit ¥40.4 billion (up 27.3%), operating profit ¥6.9 billion (up 76.7%)
Medium-term management plan targets
Expected to achieve the KGI targets for ROE and operating profit. Expected to achieve the target of 30% EPS growth over 3 years; update scheduled for May 2027Financial targets
ROE forecast: 10.8%; ROIC forecast: 6.7% consolidated, 7.7% Materials, 19.1% Electronics, 3.1% Life SciencesNumber of employees
Nagase Food Solutions: 156 peopleCapital expenditures
170 billion yen fixed asset investment, cumulative through the second quarter
Annual Dividend
¥30 (¥15 interim, ¥15 year-end)Acquisition of treasury shares
¥3.0 billion, with the period scheduled for 9 November 2026 to 30 November 2026| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending March 2027 |
| Net Sales | ¥5,725 100 million (YoY +19.0%) |
| Operating profit | ¥363 100 million (YoY +72.0%) |
| Ordinary income | ¥363 100 million (YoY +76.0%) |
| Net income | ¥327 100 million (YoY +117.0%) |
| Gross Profit Margin | Rate 19.8% / Year-on-year change (points) Improved by 0.9 percentage points |
| Operating profit margin | Rate 6.3% / Year-on-year change (points) Improvement of 2.0 percentage points |
| Selling, general and administrative expenses | ¥771 100 million |
| Results for the three months of the current quarter | Net Sales ¥292.8 billion, up 20.8% year on year / Gross profit ¥58.2 billion, up 25.2% year on year / Operating profit ¥19.3 billion, up 78.6% year on year |
| Full-year earnings forecast | Net Sales ¥1,085.0 billion / Gross profit ¥215.0 billion / Operating profit ¥58.5 billion / Ordinary income ¥58 billion / Profit attributable to owners of the parent ¥48.0 billion / ROE 10.8% / EPS ¥118.2 |
| Progress against full-year forecast | Consolidated Net sales 57%, gross profit 57%, operating profit 81%, ordinary profit 81%, net profit attributable to owners of the parent 95% / Materials Net sales 55%, gross profit 56%, operating profit 65% / Electronics Net sales 50%, gross profit 50%, operating profit 53% / Life Sciences Net sales 50%, gross profit 51%, operating profit 73% |
| Self-assessment against the plan | The first half tracked above expectations |
| Segment results | Materials Net sales ¥290.5 billion (up 19.6% year on year), gross profit ¥45.7 billion (up 23.4%), operating profit ¥16.0 billion (up 57.6%) / Electronics Net sales ¥100.9 billion (up 19.2%), gross profit ¥27.0 billion (up 24.2%), operating profit ¥11.1 billion (up 58.8%) / Life Sciences Net sales ¥181.0 billion (up 19.1%), gross profit ¥40.4 billion (up 27.3%), operating profit ¥6.9 billion (up 76.7%) |
| Breakdown of Factors Affecting the Change | Consolidated operating profit Up ¥15.2 billion year on year / Reduction in retirement benefit expense from amortization of actuarial differences ¥2.2 billion increase in profit / Foreign exchange impact Gross profit ¥5.4 billion, operating profit ¥1.9 billion / Materials operating profit Up ¥5.8 billion / Electronics operating profit Up ¥4.1 billion / Life Sciences operating profit up ¥2.9 billion year on year |
| Key KPIs | Indicator name ROE / Value 10.8% / Year on year against the same period last year Not disclosed, Indicator name EPS / Value 118.2 Yen / Year on year against the same period last year Expected to grow 50% from fiscal 2025, Indicator name ROIC (consolidated) / Value 6.7% / Year on year against the same period last year 5.6% in fiscal 2025, Indicator name EBITDA (consolidated) / Value ¥805 100 million / Year on year against the same period last year ¥64.3 billion in fiscal 2025, Indicator name Equity ratio / Value 47.7% / Year on year against the same period last year Down 1.1 percentage points year on year, Indicator name NET D/E ratio / Value 0.40 x / Year on year against the same period last year Up 0.05 from the end of March 2026 |
| Unit price and quantity metrics | Sales volume of resins for electrical and electronic equipment was at the same level as in the previous fiscal year. A systematic breakdown of other customer traffic, average spend per customer, sales volumes and other metrics: Not disclosed |
| Number of employees | Nagase Food Solutions: 156 people |
| Assumptions Underlying the Business Outlook | US dollar exchange rate Average during the period: ¥157.2 / RMB exchange rate Average during the period: ¥23.4 / Foreign-exchange sensitivity If the yen depreciates by ¥1, the impact on operating profit is approximately ¥100 million for the US dollar and approximately ¥500 million for the RMB / Second-half assumptions Fewer operating days due to the Lunar New Year and other factors, risk of a market downturn, Christmas holidays and scheduled maintenance, and additional costs including personnel and R&D expenses |
| Medium-term management plan targets | Expected to achieve the KGI targets for ROE and operating profit. Expected to achieve the target of 30% EPS growth over 3 years; update scheduled for May 2027 |
| Financial targets | ROE forecast: 10.8%; ROIC forecast: 6.7% consolidated, 7.7% Materials, 19.1% Electronics, 3.1% Life Sciences |
| Annual Dividend | ¥30 (¥15 interim, ¥15 year-end) |
| Acquisition of treasury shares | ¥3.0 billion, with the period scheduled for 9 November 2026 to 30 November 2026 |
| Capital expenditures | 170 billion yen (fixed asset investment, cumulative through the second quarter) |
| New initiatives | Opened the IBIC biotechnology research institute in San Diego, United States, Integrated the food sales business and launched Nagase Food Solutions in July 2026, Established CVC Fund II, with total fund formation of ¥2.8 billion, Established regional headquarters companies for Greater China and ASEAN, Plans to fully commercialize the sheet-form encapsulant a-SMC for advanced semiconductors in fiscal 2027 |
Items this document does not state (6)
Number of stores and locationsRisk amount incorporated into the outlookPayout ratioOrders 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 strong performance in the Semiconductor business, growth in sales of modified epoxy resins for AI semiconductors, the Prinova Group's Nutrition business turning profitable, higher market prices due to the situation in the Middle East, customer support amid supply chain disruptions, and the acquisition of new business through alternative sourcing as factors driving higher profit.
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