Hokko Chemical Industry sees strong Q3 growth, raises dividend

Hokko Chemical Industry reported a 5.9% year-over-year increase in net sales to JPY 41,578 million for the third quarter of fiscal year 2025, primarily driven by strong pesticide sales. Operating profit rose 8.5% to JPY 4,846 million, and ordinary profit increased by 6.3% to JPY 5,580 million, despite exchange rate losses. Net income attributable to shareholders saw an 11.3% increase to JPY 4,127 million, partly due to gains from the sale of investment securities.

The pesticide business was a key driver, with sales up JPY 2,216 million (8.9%) to JPY 27,046 million, benefiting from increased domestic sales of rice and horticultural products and higher overseas demand, particularly from Mexico. The fine chemical business recorded a modest sales increase of JPY 28 million (0.2%) to JPY 13,095 million, supported by recovery in medical and agricultural chemicals and increased orders for electronic materials.

In conjunction with these positive results, the company announced an upward revision to its annual dividend forecast for the fiscal year ending November 2025. The revised year-end dividend is JPY 26.00 per share, which includes a special commemorative dividend of JPY 6.00 for the company’s 75th anniversary. This brings the total annual dividend to JPY 46.00 per share.