Okamoto's half-year profits slide on raw material costs, yen strength

Okamoto Industries reported consolidated net sales of 52.8 billion yen for the first six months of fiscal year 2026, a 2.9% decrease year-over-year. Operating profit fell 49.1% to 2.5 billion yen, and net income decreased 34.8% to 1.9 billion yen. This was primarily due to rising raw material costs, particularly antimony, and the appreciation of the yen. The company also noted inventory adjustments at certain condom customers and reduced domestic and international sales in automotive materials and condoms.

Despite these challenges, the film business remained solid. Okamoto is addressing soaring antimony prices – up fivefold since 2024 and nearly tenfold compared to the 2010s – by diversifying procurement and negotiating price pass-throughs with customers. The company is also investing in R&D for antimony-free alternatives, with some manufacturers already accepting these new proposals.

Okamoto maintains its full-year fiscal 2026 earnings forecast, projecting 109 billion yen in net sales and 4.3 billion yen in net income. Dividends are expected to remain at 120 yen per share, and the company has a new share repurchase program in place, targeting up to 190,000 shares at a maximum cost of 1.0 billion yen.