Sakai Chemical Industry Co.,Ltd. [4078.T]
TOKYO, May 22 (Pulse News Wire) – Sakai Chemical Industry CO.,LTD. (4078.T) reported lower sales but higher operating profit for the fiscal year ending March 2026 compared to the previous year.
Revenue fell due to reduced sales volumes from efficiency initiatives, while operating profit increased thanks to stable and efficiency-focused businesses offsetting growth sector underperformance. For the fiscal year, revenue was ¥84.41 billion, down from ¥81.45 billion in the prior year, marking a decrease of --¥2.962 billion%. Operating profit stood at ¥6.093 billion, up from ¥6.452 billion last year, despite missing initial targets. Net profit reached ¥6.279 billion, reflecting a decline from the previous year's ¥8 million. In the final year of its mid-term plan “Beyond 2030,” Sakai Chemical highlighted progress in portfolio transformation and cost-efficiency measures.
However, the company acknowledged challenges in achieving targeted return on equity (ROE) levels, aiming to focus on ROE improvement in the upcoming fiscal year. Looking ahead, Sakai Chemical forecasts continued impact from the termination of pigment-grade titanium dioxide operations, expecting a reduction in overall profitability. The company anticipates covering losses through organic chemicals and other sectors. Projected net income for the next fiscal year includes a significant asset disposal gain of approximately ¥1 billion. Efforts to enhance capital efficiency and shareholder returns remain key priorities, with plans for active investments in growth areas and strategic divestitures.
Sakai Chemical also emphasized maintaining robust cash flow management and reducing working capital to support future investment and dividend distributions.
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