Tokyo Ohka Kogyo reports strong Q3, on track for record full-year

Tokyo Ohka Kogyo Co. announced a substantial 17.9% year-on-year increase in net sales to JPY 172,779 million for the nine months ended September 30, 2025. This growth was primarily fueled by strong demand for generative AI-related products and increased PC replacement, boosting sales in Electronic Functional Materials by 14.9% to JPY 90,902 million and High-Purity Chemicals by 21.2% to JPY 79,869 million. Operating income surged by 37.2% to JPY 31,893 million, and profit attributable to owners of parent grew by 41.1% to JPY 22,064 million.

The company reaffirmed its full-year consolidated forecast for fiscal year 2025, projecting net sales of JPY 227,000 million and operating income of JPY 40,000 million, both representing record highs. Key assumptions include continued generative AI demand and new customer plant operations, with a second-half exchange rate of JPY 140.0/USD. Capital investments, depreciation, and R&D expenses are progressing as planned, with R&D expenditures increasing by 8.1% to JPY 11,820 million year-on-year.

Tokyo Ohka Kogyo also maintained its forecast for an annual dividend of JPY 70, with an interim dividend of JPY 35, targeting a consolidated dividend on equity ratio (DOE) of 4.0% and marking eight consecutive years of dividend growth. The company’s financial position remains strong, with total assets rising by JPY 17,595 million to JPY 299,525 million, and an equity ratio of 71.1%.