Soda Nikka Co., Ltd. (TSE: 8158), Japan's leading distributor of soda-industry chemicals such as caustic soda and hydrochloric acid, reported consolidated first-quarter results for the three months to June 30, 2026 under Japanese GAAP. Revenue rose 15.2% to ¥18,464 million, operating profit nearly doubled — up 92.8% to ¥822 million — ordinary profit climbed 75.1% to ¥1,069 million, and net profit attributable to owners of the parent more than doubled, up 118.8% to ¥793 million. Basic earnings per share were ¥34.78, against ¥15.93 a year earlier, and comprehensive income surged 476.2% to ¥3,239 million on valuation gains.
Functional Materials sets the pace
The smaller of the group's two main businesses did the heavy lifting. Functional Materials revenue jumped 42.7% to ¥5,013 million and segment profit rose 87.9% to ¥362 million. Packaging-related products were strong: packaging equipment grew on the completion of acceptance testing for a new overseas project, while composite films benefited from robust orders for food packaging. Synthetic resins were also firm, with polypropylene resin lifted by special demand for sundry-goods applications and polyethylene resin gaining share in food-container applications. Equipment, construction and industrial materials added further growth, as machinery installation work and exhaust-gas treatment equipment both won new projects.
Chemicals: caustic soda soft, everything else firm
The core Chemicals segment posted revenue of ¥11,722 million, up 10.3%, with segment profit up 21.0% to ¥1,025 million. Soda-related chemicals were steady overall: hydrochloric acid transactions grew on strong electronics-industry demand and sodium hypochlorite advanced on higher water-supply and sewage demand, but caustic soda — the mainstay product — saw transactions fall on lower sales volumes. Other inorganic chemicals were strong, with aluminium compounds lifted by higher shipments for water treatment and activated carbon by replacement demand for exhaust-gas and wastewater treatment. Organic chemicals were strong too, as surfactants picked up spot orders and polymer flocculants won new projects. A small "Other" segment covering sundry industrial materials and rental income from owned movable and real property rounds out the group.
A mixed backdrop for chemical customers
Japan's economy recovered gradually during the quarter on resilient consumer spending, an export pick-up and favourable corporate sentiment helped by AI-related demand, although Middle East tensions pushed up raw-material prices and created supply constraints. In domestic manufacturing — where the group's chemical-industry customers sit — that disruption was visible in the chemical industry early in the quarter, but machinery-related industries held firm on strong semiconductor demand and manufacturing overall gradually recovered.
Balance sheet strengthens
Total assets rose to ¥79,737 million at June 30, 2026 from ¥77,826 million three months earlier, while net assets — all of it shareholders' equity — climbed to ¥36,473 million from ¥33,774 million. The equity ratio improved by 2.3 points to 45.7% from 43.4%. The group comprises seven consolidated subsidiaries, including Soda Nikka Business Support, a Shanghai trading arm, PT. SODA NIKKA INDONESIA, Nihon Housou, SODA NIKKA VIETNAM, Morris and Nozu Shoten. Shares issued totalled 22,968,000 including 144,340 treasury shares, with an average 22,823,660 shares outstanding during the quarter.
Guidance held despite a fast start
Management left full-year FY3/2027 guidance unchanged: revenue of ¥70,100 million (+5.1%), operating profit of ¥2,610 million (+5.2%), ordinary profit of ¥3,110 million (+6.0%) and net profit of ¥2,450 million (+3.7%), for EPS of ¥107.34. First-half targets are revenue of ¥35,000 million (+6.3%) and operating profit of ¥1,300 million (+9.5%). The contrast is worth flagging: the first quarter's ¥822 million of operating profit already equals 63% of the half-year target and 31% of the full-year target, yet no revision was made. The dividend forecast is likewise unchanged at ¥44.00 per share for the year (¥22.00 interim plus ¥22.00 year-end) — the same annual total as FY3/2026, which split ¥20.00 and ¥24.00. FY3/2027 is the final year of the medium-term plan "Go forward STAGE3", under which the group is working to strengthen the earning power of facilities it has already invested in.
| Metric | Q1 FY3/2027 | Q1 FY3/2026 | YoY |
|---|---|---|---|
| Revenue (¥ billion) | 18.46 | 16.02 | +15.2% |
| Operating profit (¥ billion) | 0.82 | 0.43 | +92.8% |
| Ordinary profit (¥ billion) | 1.07 | 0.61 | +75.1% |
| Net profit attrib. to owners (¥ billion) | 0.79 | 0.36 | +118.8% |
| Basic EPS (¥) | 34.78 | 15.93 | +118.4% |
| Chemicals segment revenue (¥ billion) | 11.72 | 10.63 | +10.3% |
| Functional Materials revenue (¥ billion) | 5.01 | 3.51 | +42.7% |
| Equity ratio (%) | 45.7 | 43.4 | +2.3pt |
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.