Hokko Chemical Industry (4992) Q4 2024 earnings summary

Executive summary

• FY2024 revenue rose 2.1% YoY to ¥46,195 million; operating profit increased 2.8% to ¥4,540 million, ordinary profit 4.0% to ¥5,691 million and net income 7.6% to ¥4,006 million.

• Agrochemicals led sales growth; higher dividend income lifted ordinary profit, while a ¥198 million securities-sale gain and lower tax expense supported net income.

• A second three-year management plan was launched, focused on strengthening the earnings and production base through reforms and growth investment.

Financial highlights

• Segment revenue gains: agrochemicals +¥727 million, fine chemicals +¥137 million and textile materials +¥105 million; operating profit rose ¥123 million, led by agrochemicals (+¥340 million).

• Comprehensive income fell 91.4% to ¥787 million as other comprehensive income declined sharply.

• Cash and equivalents at year-end rose ¥3,079 million to ¥9,707 million; operating cash flow was ¥6,073 million.

Outlook and guidance

• FY2025 forecast: revenue ¥47,500 million (+2.8%), operating profit ¥4,750 million (+4.6%), ordinary profit ¥5,700 million (+0.2%) and net income ¥3,850 million (-3.9%).

• Forecast assumes ¥140/US$ versus FY2024 actual ¥150.95/US$; lower FX gains are expected to keep ordinary profit near FY2024.

• Fine chemicals forecast: revenue ¥18,320 million (+4.1%) and operating profit ¥4,290 million (+5.7%), supported by electronics materials and recovery in pharmaceutical/agrochemical demand.

• Agrochemical revenue forecast at ¥27,300 million (+2.4%); operating profit expected near FY2024 at ¥410 million as investment costs offset sales growth.

• Textile-materials revenue forecast to decline 2.3% to ¥1,875 million and operating profit 9.6% to ¥80 million amid weaker industrial and apparel-material demand.