NIPPON SHOKUBAI CO.,LTD. [4114.T]
TOKYO, May 14 (Pulse News Wire) – Nippon Shokubai CO.,LTD. (4114.T) reported lower revenue and profits for the fiscal year ended March 2025.
Revenue decreased to ¥3.999 billion compared to the previous year, while operating profit was ¥175 billion. Despite challenges, the Solution business showed growth, contributing positively to overall performance. The company attributed the decline primarily to increased production costs and reduced inventory valuation gains. Additionally, a decrease in sales and marketing expenses contributed to the reduction in operating profit. However, the Materials division experienced a significant drop in profitability due to higher fixed manufacturing costs overseas.
Looking ahead, NIPPON SHOKUBAI remains cautious about the ongoing geopolitical tensions in the Middle East, which continue to impact raw material supply conditions. As a result, the company has yet to release its earnings forecast for the fiscal year ending March 2026, citing the difficulty in predicting the effects of regional instability on its operations. In terms of shareholder returns, the company plans to maintain a dividend payout ratio of either 100.8% or a Dividend Outflow Ratio (DOE) of 4.3%. The firm also intends to repurchase shares using funds generated from policy share disposals, aiming to reduce holdings further. Despite the challenging environment, NIPPON SHOKUBAI continues to focus on maintaining stable product supplies and managing cost increases through strategic partnerships and diversified procurement strategies.
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