Hokko Chemical Industry (4992) Q3 2024 earnings summary

Executive summary

• Revenue increased 2.9% year-over-year to ¥39,261 million for the nine months ended August 31, 2024, driven by strong agrochemical sales.

• Operating income declined 7.7% year-over-year to ¥4,468 million due to higher logistics and personnel costs and price competition in fine chemicals.

• Net income attributable to shareholders rose 2.3% year-over-year to ¥3,708 million, aided by gains on investment securities and lower tax expenses.

Financial highlights

• Gross margin remained stable despite cost pressures, with gross profit at ¥10,024 million.

• Comprehensive income fell 25.0% year-over-year to ¥3,435 million, mainly due to negative securities valuation and currency translation adjustments.

• EPS for the period was ¥136.91, up from ¥133.82 in the prior year.

Outlook and guidance

• Full-year revenue forecast is ¥46,000 million (+1.7% year-over-year), with operating income expected at ¥4,120 million (–6.7%) and net income at ¥3,450 million (–7.3%).

• No changes to previously announced guidance.