Hokko Chemical Industry (4992) Q2 2024 earnings summary

Executive summary

• Revenue increased 2.2% year-over-year to ¥28,938 million, driven by strong agrochemical sales and favorable exchange rates.

• Operating income declined 8.0% year-over-year to ¥3,402 million due to higher personnel and logistics costs and lower fine chemicals sales.

• Net income attributable to shareholders rose 4.8% year-over-year to ¥2,677 million, aided by reduced tax expenses.

• Comprehensive income surged 139.7% year-over-year to ¥8,469 million, mainly from gains on securities.

Financial highlights

• Gross profit was ¥7,118 million, slightly down from the previous year.

• Operating margin decreased to 11.8% from 13.1% year-over-year.

• EPS for the quarter was ¥98.84, up from ¥94.34 year-over-year.

• Total assets increased to ¥83,214 million, up ¥15,735 million from the previous fiscal year-end.

• Equity ratio declined to 66.0% from 69.3% at the previous year-end.

Outlook and guidance

• Full-year revenue forecast is ¥46,000 million, up 1.7% year-over-year.

• Operating income is projected at ¥4,120 million, down 6.7% year-over-year.

• Net income forecast is ¥3,450 million, down 7.3% year-over-year.

• No changes to previously announced guidance.