Nippon Soda (4041) Q1 2026 earnings summary

Executive summary

• Net sales rose 1.4% year-over-year to ¥32.64B in 1Q FY2026, with operating profit up 2.8% to ¥3.16B.

• Ordinary profit declined 13.4% to ¥4.53B, and profit attributable to owners fell 25.9% to ¥3.21B, mainly due to foreign exchange losses from a stronger yen.

• Comprehensive income decreased 13.9% year-over-year to ¥5.42B.

• Sales growth was driven by Chemical Materials, Trading & Logistics, and Agri Business, while Engineering and Eco Solutions saw declines.

Financial highlights

• Net sales: ¥32.64B (+1.4% YoY); Operating profit: ¥3.16B (+2.8% YoY); Gross profit: ¥9.94B.

• Ordinary profit decreased 13.4% to ¥4.53B; EPS dropped 25.8% to ¥58.5.

• Share of profit from equity-method entities increased 52.6% to ¥1.33B.

• Total assets as of June 30, 2025, were ¥289.67B; equity-to-asset ratio was 64.5%; net assets at ¥188.14B.

• Foreign exchange losses recorded due to yen appreciation.

Outlook and guidance

• Full-year FY2026 net sales forecast at ¥148.0B; operating profit forecast at ¥13.2B; profit attributable to owners expected at ¥13.3B; EPS forecast at ¥241.47.

• No change to 1H FY2026 forecast; full-year forecast to be reviewed at 1H results.

• Assumed exchange rates: 1 USD = ¥140, 1 EUR = ¥155.

• No revisions to previously announced earnings or dividend forecasts.