Hokko Chemical Industry (4992) Q3 2024 earnings summary

Executive summary

• 9M revenue rose 2.9% YoY to ¥39,261m, led by agricultural chemicals growth; operating income fell 7.7% to ¥4,468m amid higher costs and fine chemicals price competition.

• Ordinary income declined ¥329m to ¥5,250m, while net income attributable to owners rose 2.3% to ¥3,708m on securities-sale gains and lower tax expense.

Financial highlights

• Gross profit was ¥10,024m; EPS rose to ¥136.91 from ¥133.82 a year earlier.

• Comprehensive income fell 25.0% YoY to ¥3,435m, mainly due to negative securities valuation and currency translation adjustments.

Outlook and guidance

• FY2024 forecast remains unchanged: revenue ¥46,000m, operating income ¥4,120m, ordinary income ¥5,100m and net income attributable to owners ¥3,450m.

• 9M progress against FY forecasts: revenue 85.4%, operating income 108.4%, ordinary income 102.9% and net income 107.5%.

• Forecast results remain subject to macroeconomic, market, industry and other internal or external factors.