Hokko Chemical Industry (4992) Q3 2025 earnings summary

Executive summary

• Nine-month revenue rose 5.9% YoY to ¥41,578m; operating profit increased 8.5% to ¥4,846m, led by pesticide growth.

• Net income attributable to owners rose 11.3% to ¥4,127m, including a ¥345m gain on sale of investment securities.

• Comprehensive income increased 141.5% YoY to ¥8,297m.

Financial highlights

• Ordinary profit rose 6.3% to ¥5,580m despite a ¥64m foreign-exchange loss; gross profit was ¥10,536m, up from ¥10,024m.

• EPS was ¥156.81, compared with ¥136.91 in the prior-year period.

• Total assets were ¥77,205m, up ¥11,883m from the previous year-end; net assets were ¥52,712m and the equity ratio was 68.3%, down from 70.7%.

• Revenue increased ¥2,317m YoY: pesticides contributed +¥2,216m, textile materials +¥78m and fine chemicals +¥28m.

• Operating profit increased ¥379m, mainly on pesticide sales growth and improved margins as higher production reduced fixed-cost ratios.

Outlook and guidance

• FY2025 forecasts remain unchanged: revenue ¥47,500m, operating profit ¥4,750m, ordinary profit ¥5,700m and net income attributable to owners ¥3,850m.

• 3Q progress against forecasts was revenue 87.5%, operating profit 102.0%, ordinary profit 97.9% and net income 107.2%; each exceeded the prior-year comparison.

• Year-end dividend forecast revised to ¥26 per share, including a ¥6 commemorative dividend, bringing the annual forecast to ¥46 per share.

• Forecasts reflect currently available information and may differ with macroeconomic, market, industry and other internal or external factors.