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Nippon Seika’s Financial Results for Fiscal Year Ending March 2026

Nippon Seika Co., Ltd., headquartered in Osaka, has recently released its financial results for the fiscal year ending March 2026. The company reported a decrease in revenues, yet considerable growth in operating income and net profit attributable to shareholders.

Key Financial Figures

• - Total Revenue: ¥33.796 billion (a decline of 5.2% compared to the previous year)
• - Operating Income: ¥5.341 billion (an increase of 9.1% year-on-year)
• - Ordinary Profit: ¥5.570 billion (up 6.9% from last fiscal year)
• - Net Profit for Parent Company Shareholders: ¥4.428 billion (an increase of 14.4% year-on-year)

Analysis of Performance

The decline in total revenue was largely attributed to the functional products segment, specifically due to the exit of one trading subsidiary as per the mid-term business plan. On a positive note, operating and ordinary profits saw an increase due to a rise in contract manufacturing of pharmaceutical intermediates in the healthcare sector, along with enhancements in profitability within the fine chemicals area. Additionally, gains from the sale of investment securities contributed significantly to the net profit increase.

Breakdown by Business Segment

• - Functional Products: This segment recorded a revenue of ¥26.351 billion (down 7.4% from the previous year), but segment profit (operating income) rose to ¥4.688 billion (up 8.7% year-on-year), yielding a profit margin of 17.8%, up from 15.2% the previous year.

- Beauty Care: While sales of wool grease derivatives for cosmetics increased, overall revenue and profit declined largely due to delayed inventory adjustments for overseas functional oils and decreased sales in bioactive substances for domestic markets.
- Healthcare: This area saw an uptick in sales of phospholipids for pharmaceuticals and an increase in contract manufacturing of intermediates, as well as improved profitability from the sales of wool grease derivatives for pharmaceuticals abroad, contributing to overall revenue and profit growth.
- Fine Chemicals: Growth in sales of industrial-grade wool grease derivatives abroad combined with cost-cutting measures led to increased revenue and profit in this segment as well.

• - Environment and Hygiene Products: Despite facing pressure from rising raw material costs, the company managed to increase sales through price adjustments and the launch of new products in the food and medical caregiving sectors. Revenue reached ¥7.212 billion (up by 3.1% year-on-year), while segment profit climbed to ¥570 million (up 10.2% year-on-year).

• - Others: The remaining segments yielded revenue of ¥233 million (3.0% increase), with segment profits advancing to ¥80 million (30.1% rise).

Future Outlook

Going forward, Nippon Seika aims to enhance its business foundation while focusing on selective investment to expand profitability. For the coming fiscal year ending March 2027, the group projects consolidated revenue to reach ¥37.4 billion (an increase of 10.7% year-on-year), operating profit expected at ¥5.7 billion (up 6.7%), ordinary profit at ¥6.0 billion (up 7.7%), and a net profit of ¥5.2 billion (an increase of 17.4%).

Company Overview

• - Headquarters: 10th Floor, Nippon Seika Building, 2-4-9 Binkgo-cho, Chuo-ku, Osaka, Japan
• - President: Hiroshi Yano
• - Stock Listing: Tokyo Stock Exchange Prime Market
• - Capital: ¥5.933 billion
• - Established: February 1918
• - Business Activities: Manufacture and sale of functional products and environmental hygiene products; real estate leasing
• - Website: Nippon Seika
• - Official Instagram: Nippon Seika Instagram