Kumiai Chemical cuts profit, dividend forecasts on impairment losses

Kumiai Chemical Industry Co., Ltd. announced revisions to its full-year consolidated earnings and year-end dividend forecasts for the fiscal year ending October 31, 2025. Net sales are projected to reach 169,000 million yen, exceeding previous forecasts due to strong performance in agricultural chemicals. However, operating profit is expected to decrease to 10,000 million yen due to price adjustments for herbicide AXEEV. Ordinary profit is forecast at 10,500 million yen, impacted by reduced equity method investment income and foreign exchange losses.

Profit attributable to owners of parent is now expected to be 3,500 million yen, a substantial reduction from the prior 10,900 million yen forecast. This is primarily due to the recognition of impairment losses on fixed assets and other factors. A special loss of 3,810 million yen in impairment losses on fixed assets will be recorded by its consolidated subsidiary, Iharanikkei Chemical (Thailand) Co., Ltd. for its chlorination business.

Consequently, Kumiai Chemical revised its year-end dividend forecast to 12 yen per share, down from the previously projected 24 yen per share, resulting in a total annual dividend of 22 yen per share. The revisions reflect the impact of significant special losses on the company's financial performance.