Nippon Soda (4041) Q1 2027 earnings summary

Executive summary

• Net sales rose 4.9% year-over-year to ¥34.25 billion in 1Q FY2027, with operating profit up 18.3% to ¥3.73 billion and ordinary profit up 23.2% to ¥5.58 billion.

• Profit attributable to owners increased 2.0% to ¥3.28 billion; EPS grew 4.6% to ¥61.2.

• Sales growth was driven by Agri Business and Trading & Logistics, offsetting declines in Chemical Materials.

• Foreign exchange gains were recorded due to a weaker yen; extraordinary losses included costs from the Mizushima Plant closure.

Financial highlights

• Net sales: ¥34.25B (+4.9% YoY); Operating profit: ¥3.73B (+18.3% YoY); Ordinary profit: ¥5.58B (+23.2% YoY).

• Profit attributable to owners: ¥3.28B (+2.0% YoY); EPS: ¥61.2 (+4.6% YoY).

• Exchange rates: JPY/USD 159.4 (+10.5%), JPY/EUR 185.5 (+13.2%).

• Share of profit from equity-method entities slightly decreased by 2.9%.

• Extraordinary losses from Mizushima Plant closure.

Outlook and guidance

• Full-year FY2027 net sales forecast at ¥152.2B (+0.1% YoY); operating profit expected to decline 5.1% to ¥14.2B.

• Profit attributable to owners forecast to decrease 13.5% to ¥15.8B; EPS expected at ¥294.8.

• Inventory valuation gains in Agri Business expected to decrease; competitive pricing pressures anticipated.

• R&D expenses to rise, especially for new insecticide registration.

• No change to 1H forecast since May 2026; full-year forecast to be reviewed after 1H results.