Muromachi Chemicals Posts Q4 Impairment Loss, Adjusts FY26 Outlook

TOKYO, Jul 14 (Pulse News Wire) – Muromachi Chemicals Inc. (4885.T) reported a special loss of impairment totaling ¥398 million for the fourth quarter ending June 30, 2026, due to revised sales forecasts for some pharmaceutical contract manufacturing products.

The company also adjusted its fiscal year 2026 earnings outlook, which now shows a significant divergence from previous estimates. For the fiscal year ending May 31, 2026, the company's earnings per share decreased compared to the initial forecast released on June 1, 2025. Revenue exceeded expectations, but operating profit and ordinary profit saw increases, while net profit fell sharply by 65.3%.

The impairment charge was the primary factor behind the lower-than-projected net profit. In light of these changes, Muromachi Chemicals plans to focus on improving profitability through more selective project acquisition and operational efficiency enhancements going forward. Despite the impairment losses, the company remains committed to maintaining stable dividend payments.

It intends to proceed with the previously announced final dividend of ¥16 per share scheduled for distribution.