Fumakilla Limited (TSE: 4998), the Hiroshima-based maker of insecticides, repellents and household and garden-care products, reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 4.8% year-on-year to a record ¥77,366 million, but profitability slipped on cost pressure: operating profit fell 17.2% to ¥2,190 million from ¥2,646 million, ordinary profit declined 10.2% to ¥2,262 million, and net profit attributable to owners of the parent dropped 17.5% to ¥1,206 million from ¥1,462 million. Basic EPS came in at ¥73.24 versus ¥88.77 a year earlier.
Record sales, but margins compress
The result extends Fumakilla's multi-year top-line growth — revenue is up from ¥73,854 million in FY3/2025 — yet the operating margin narrowed to 2.8% from 3.6%, and the ratio of ordinary profit to sales eased to 3.4% from 4.0%. The squeeze reflects higher raw-material, packaging and logistics costs together with continued investment behind overseas growth, which outpaced the gains from record domestic and export volumes. Return on equity slipped to 4.6% from 6.0%.
Domestic parent softer than the group
On a non-consolidated (parent-only) basis, Fumakilla's domestic business was weaker than the wider group. Parent revenue fell 5.8% to ¥24,055 million from ¥25,542 million, and the parent recorded an operating loss of ¥729 million (versus a ¥948 million operating loss the prior year), with parent net profit of ¥888 million, down 12.0%. The contrast underscores how the consolidated top-line record was carried by overseas subsidiaries and group operations rather than the Japanese parent, where the home insecticide market remains mature and price-competitive.
Balance sheet and cash flow
Total assets grew to ¥68,556 million from ¥64,970 million, and net assets rose to ¥29,327 million from ¥27,723 million, lifting the equity ratio modestly to 39.1% from 38.9%. Book value per share rose to ¥1,627.35 from ¥1,532.58. Cash generation, however, weakened sharply: operating cash flow fell to ¥843 million from ¥1,815 million, while investing activities used ¥2,876 million (up from ¥1,552 million) on capacity and overseas investment. Financing activities provided ¥985 million. Period-end cash and equivalents declined to ¥8,326 million from ¥9,361 million.
Dividend raised despite profit dip
Despite the earnings decline, Fumakilla raised its annual dividend to ¥24.00 per share from ¥22.00, pushing the consolidated payout ratio up to 32.8% from 24.8%. For FY3/2027 the company forecasts a flat dividend of ¥24.00, which on higher guided earnings would bring the payout ratio back down toward 24.3% — signalling a commitment to maintain shareholder returns through a softer profit year.
FY27 guidance: a sharp profit rebound
Management expects a strong recovery in FY3/2027, guiding to revenue of ¥84,800 million (+9.6%), operating profit of ¥2,950 million (+34.7%), ordinary profit of ¥2,810 million (+24.1%), and net profit attributable to owners of ¥1,630 million (+35.1%), implying basic EPS of ¥98.91. The double-digit revenue and rebound in margins point to expectations that overseas expansion will begin to convert into profit and that this year's cost pressures will ease.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥ million) | 77,366 | 73,854 | +4.8% |
| Operating profit (¥ million) | 2,190 | 2,646 | -17.2% |
| Ordinary profit (¥ million) | 2,262 | 2,520 | -10.2% |
| Net profit attrib. to owners (¥ million) | 1,206 | 1,462 | -17.5% |
| Basic EPS (¥) | 73.24 | 88.77 | -17.5% |
| Operating margin | 2.8% | 3.6% | -0.8pp |
| ROE | 4.6% | 6.0% | -1.4pp |
| Equity ratio | 39.1% | 38.9% | +0.2pp |
| Annual dividend (¥) | 24.00 | 22.00 | +9.1% |
| FY27 revenue guidance (¥ million) | 84,800 | — | +9.6% |
| FY27 operating profit guidance (¥ million) | 2,950 | — | +34.7% |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.