TOKYO, May 08 (Pulse News Wire) – Nichicon Corporation (6996.T) revised its annual dividend expectations and reported a special loss for the fiscal year ending March 31, 2026. The board of directors decided to increase the final dividend per share from ¥18 to ¥25, bringing the total annual dividend to ¥43 compared to ¥36 previously forecasted.
The revision reflects the company's commitment to shareholder returns, aiming for a progressive dividend policy based on sustainable profit growth. Additionally, Nichicon noted a significant decrease in operating profit due to reduced sales volume, higher raw material costs, energy expenses, and increased personnel and research expenditures. As a result, the net income dropped by 46.4%, primarily attributed to the recognition of a special loss related to the impairment of equity investments in its subsidiaries.
In detail, Nichicon recorded a special loss amounting to ¥2.027 billion due to the substantial decline in the fair value of shares held in its subsidiary companies, Nichicon Malaysia Sendirian Berhad and Nichicon Electronics Suzhou Co., Ltd. Although this special loss will be eliminated in the consolidated financial statements, it significantly impacted individual financial results. For the fiscal year ending March 31, 2026, compared to the previous fiscal year, Nichicon’s revenue decreased by --¥5.951 billion, while operating profit declined by --¥1.411 billion, ordinary profit fell by --¥1.331 billion, and net profit dropped by --¥4.767 billion.
The company attributes these declines mainly to lower sales volumes and rising operational costs.
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