Nippon Soda (4041) Q3 2025 earnings summary

Executive summary

• Net sales for 3Q FY2025 rose 1.8% year-over-year to ¥107.3 billion, with operating profit up 14.6% to ¥11.2 billion and profit attributable to owners up 6.4% to ¥12.54 billion.

• Comprehensive income dropped significantly by 62.4% year-over-year to ¥7,014 million.

• Chemical Materials and Engineering segments drove growth, while Agri Business faced shipping adjustments and competitive pricing.

• Share of profit from equity-method entities declined due to a one-time tax refund in the prior year.

Financial highlights

• Operating profit margin improved, with EPS up 7.7% year-over-year to ¥227.7 (post-share split basis).

• Gross profit increased to ¥30,312 million from ¥28,722 million year-over-year.

• Gain on sales of investment securities recorded.

• Exchange rates: JPY/USD at 151.8 (+6.3%), JPY/EUR at 165.9 (+8.1%).

• Total assets as of December 31, 2024, were ¥293,714 million, with net assets at ¥189,807 million.

Outlook and guidance

• FY2025 net sales forecast revised up to ¥153.0 billion, operating profit to ¥13.5 billion, and net income to ¥12.6 billion.

• Chemical Materials and Engineering expected to continue growth; Agri Business to maintain shipping adjustments.

• Forecasted basic earnings per share for the full year is ¥228.77, considering the share split.

• Exchange rate assumptions for 2H: ¥145/USD, ¥155/EUR.

• Full-year net sales forecast for March 31, 2025, is ¥153,000 million, a 0.9% decrease year-over-year.