Sankei Chemical H1 Operating Profit Falls 15% to ¥379m Despite 13% Sales Growth

Sankei Chemical, a Kagoshima-based maker of agricultural and industrial chemicals, said first-half operating profit fell 14.7% to ¥379 million even as sales rose 12.9% to ¥4.21 billion, as costs outpaced revenue; interim net profit attributable to owners edged up 2.8% to ¥297 million.

An agricultural chemicals plant Sankei Chemical · FSE

Sankei Chemical (FSE: 4995), a Kagoshima-based manufacturer of agricultural chemicals, industrial chemicals and related products, reported results for the first half of the fiscal year ending November 2026 — the six months from December 1, 2025 to May 31, 2026. Sales rose 12.9% to ¥4,206m, but operating profit fell 14.7% to ¥379m and ordinary profit fell 11.2% to ¥417m, while interim net profit attributable to owners edged up 2.8% to ¥297m. Half-year EPS was ¥332.01, up from ¥322.99.

Sales climb but profit slips from a strong prior year

First-half sales grew on firm demand for the company's agrochemical products. Operating and ordinary profit, however, declined against an unusually strong prior-year first half, when first-half operating profit had more than doubled and set a high base for comparison. Despite the lower operating profit, interim net profit attributable to owners still edged higher, helped by non-operating and extraordinary items. Comprehensive income rose 34.0% to ¥369m.

Balance sheet and dividend

Total assets stood at ¥8,842m, while net assets were ¥3,753m, giving an equity ratio of 40.8%, down from 41.2% a year earlier. Net assets per share were ¥4,024.01. The company left its dividend plan unchanged, guiding a year-end payout of ¥30.00 for a full-year total of ¥30.00, in line with the prior year (FY11/25).

Full-year guidance unchanged

Sankei Chemical kept its full-year forecast for the year ending November 2026 intact, guiding sales of ¥6,608m (+2.5%), operating profit of ¥182m (+0.7%), ordinary profit of ¥286m (+1.7%) and net profit of ¥226m (+24.6%), for EPS of ¥252.16. As is typical for the agrochemical business, earnings are heavily weighted toward the first half, so full-year operating profit is guided below the first-half result.

Sankei Chemical — H1 FY11/2026 Key Financials (J-GAAP, consolidated)
MetricH1 FY11/26H1 FY11/25YoY
Sales (¥m)4,2063,727+12.9%
Operating profit (¥m)379445−14.7%
Ordinary profit (¥m)417470−11.2%
Net profit attrib. (¥m)297289+2.8%
EPS (¥)332.01322.99+2.8%
Equity ratio40.8%41.2%−0.4pp

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.