Hokko Chemical Industry (4992) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue rose 6.6% YoY to ¥15,353 million; operating income increased 5.3% to ¥1,897 million, ordinary income 1.4% to ¥2,036 million, and net income attributable to owners 7.3% to ¥1,415 million.

• Pesticide sales growth led results; fiber materials also grew, while Fine Chemicals recorded higher sales but lower operating income.

• The three-year management plan focuses on strengthening the earnings and production base and pursuing growth in agrochemicals and fine chemicals.

Financial highlights

• Revenue rose ¥944 million YoY to ¥15,353 million; operating income increased ¥96 million to ¥1,897 million.

• Ordinary income was ¥2,036 million, up ¥28 million; net income attributable to owners was ¥1,415 million, up ¥97 million, helped by lower tax expense.

• Q1 EPS was ¥53.55, versus ¥48.68 a year earlier; comprehensive income was ¥3,974 million, down from ¥7,451 million.

• A ¥29 million foreign-exchange loss was recorded in ordinary income.

Outlook and guidance

• FY2025 forecasts remain unchanged: revenue ¥47,500 million, operating income ¥4,750 million, ordinary income ¥5,700 million, net income ¥3,850 million, and EPS ¥144.66.

• Q1 progress against FY guidance: revenue 32.3%, operating income 39.9%, ordinary income 35.7%, and net income 36.8%; profit progress rates were below the prior-year Q1 rates.

• FY2025 dividend forecast is ¥40 per share, up from ¥32 in FY2024.