日本農薬 has strengths in insecticides for fruit trees and vegetables, and updated its record performance on the back of strong overseas agrochemical operations. The company’s outlook for the fiscal year ending March 2027, as well as plans to introduce rice vouchers as a shareholder benefit and increase the dividend, have been reported.
Overseas sales continued to account for approximately 70% of total sales. For the fiscal year ending March 2026, sales were ¥111.8 billion, operating income was ¥10.8 billion, and net income was ¥7.2 billion, with all three reaching levels above the previous fiscal year. ROE improved to 8.9% and the operating margin to 9.7%.
Strong overseas markets, particularly in North America and Europe, drove earnings. The company’s strengths include expanding its insecticide business for fruit trees and vegetables and responding to local needs through its overseas group companies. In Japan, it is strengthening its sales capabilities through partnerships with Corteva and BASF.
The forecast for the fiscal year ending March 2027 is sales of ¥116.0 billion, operating income of ¥11.5 billion, and net income of ¥7.4 billion, all expected to increase year on year. The company plans to maintain an operating margin of approximately 9.9% and ROE of 8.5%.
In terms of shareholder returns, the company plans to maintain stable dividends while setting its payout ratio at approximately 40%. From the current fiscal year, it plans to introduce a shareholder benefit offering 4 rice vouchers, worth ¥1,760 in total.
As new areas of growth, the company is promoting smart agriculture and the use of AI, expanding its digitalization and biotechnology initiatives through Raymie, a pest and weed diagnostic app, API integration with NacField and other services, and the rollout of AiPics, an AI-based hygiene management system.