Hokko Chemical Industry (4992) Q1 2024 earnings summary

Executive summary

• Q1 FY2024 revenue rose 1.5% YoY to ¥14,409 million, while operating, ordinary and net income declined as lower fine-chemical sales weighed on earnings.

• Pesticide growth, including stronger domestic sales and exports, offset declines in fine chemicals and textile materials.

Financial highlights

• Revenue was ¥14,409 million, up ¥212 million (1.5%) YoY; cost of sales rose 6.3% to ¥10,854 million.

• Gross profit fell ¥430 million to ¥3,555 million; gross margin declined to 24.7% from 28.1% YoY.

• Operating income fell 22.6% to ¥1,801 million; ordinary income fell 16.8% to ¥2,008 million.

• Net income attributable to owners of the parent decreased 22.1% to ¥1,318 million.

Outlook and guidance

• FY2024 forecasts: revenue ¥46,000 million, operating income ¥4,120 million, ordinary income ¥5,100 million and net income attributable to owners of the parent ¥3,450 million.

• Q1 progress toward FY forecasts was 31.3% for revenue, 43.7% for operating income, 39.4% for ordinary income and 38.2% for net income.