Hokko Chemical Industry (4992) Q4 2024 earnings summary

Executive summary

• Revenue increased 2.1% year-over-year to ¥46,195 million, driven by strong sales in the agrochemical segment and favorable exchange rates.

• Operating income rose 2.8% to ¥4,540 million, and net income attributable to shareholders grew 7.6% to ¥4,006 million, aided by gains on securities sales and lower tax expenses.

• The company launched its second three-year management plan, focusing on strengthening its earnings and production base through continued reforms and growth investments.

Financial highlights

• Revenue: ¥46,195 million (+2.1% YoY); Operating income: ¥4,540 million (+2.8% YoY); Ordinary income: ¥5,691 million (+4.0% YoY); Net income: ¥4,006 million (+7.6% YoY).

• Comprehensive income dropped sharply to ¥787 million (–91.4% YoY) due to a significant decline in other comprehensive income.

• Cash and equivalents at year-end increased to ¥9,707 million, up ¥3,079 million from the previous year.

Outlook and guidance

• FY2025 revenue forecast: ¥47,500 million (+2.8% YoY); Operating income: ¥4,750 million (+4.6% YoY); Net income: ¥3,850 million (–3.9% YoY).

• Annual dividend forecast for FY2025 is ¥40 per share, up from ¥32 in FY2024, reflecting a progressive dividend policy.