Soda Nikka has one of Japan’s leading sales platforms for caustic soda and is achieving record-high profit for 5 consecutive periods after strengthening its logistics and manufacturing capabilities. The company has disclosed the progress of its medium-term management plan, Go forward STAGE3, and its investment policy as it aims to continue growing this fiscal year.
Soda Nikka estimates its domestic market share for caustic soda, its core product, at approximately 15%, with more than 3,500 domestic business partners and more than 5,000 products handled. The company has maintained a strong business foundation even through the COVID-19 pandemic and has achieved record-high profit for 5 consecutive periods over the past 10 years.
The company operates through 3 segments and has established 4 Chemical Centers nationwide, particularly supporting the stable supply of liquid chemicals. The centers adjust concentrations and provide small-lot deliveries, building a supply system tailored to demand in surrounding areas.
Under its medium-term management plan, Go forward STAGE3, the company is targeting consolidated net income of ¥2.4 billion or more, ROE of 8% or more and a dividend payout ratio of 40% or more for fiscal 2026. The investment budget over the 4-year period is expected to total approximately ¥10 billion, while cash inflow is expected to be approximately ¥14 billion.
To strengthen its logistics capabilities, the company cites an investment of approximately ¥1.2 billion in the Hiroshima Ono Chemical Center and a newly established logistics warehouse in Fuji, Shizuoka Prefecture. It is also proceeding with investments to expand its manufacturing capabilities, including expanding the production capacity of 日本包装, while aiming to expand its OEM and ODM operations in the lifestyle solutions area.
In lifestyle solutions, the company is strengthening its OEM intermediation business, primarily in the household goods market, and is also considering the use of overseas OEM suppliers. Looking ahead, it is considering the possibility of owning its own production facilities and plans to strengthen its ability to provide an integrated service covering raw material procurement, manufacturing, filling and inspection.