Nitto Kohki faces profit plunge despite slight revenue increase

Nitto Kohki reported interim revenue of JPY 13.17 billion for the fiscal year ending March 2026, a 2.4% decrease year-over-year. Operating profit declined 33.7% to JPY 0.92 billion, attributed to reduced gross profit from lower sales and increased costs associated with new factory operations and a JPY 0.448 billion extraordinary loss related to factory relocation. Net profit attributable to shareholders plunged 88.8% to JPY 0.105 billion. The company forecasts full-year revenue of JPY 27.30 billion, a 0.2% increase from the previous year, and an operating profit of JPY 1.50 billion, a 36.0% decrease.

The company anticipates an annual dividend of JPY 40 per share for the fiscal year ending March 2026, reflecting a dividend payout ratio of 115.2%. This decision considers depreciation and increased expenses from new factory operations, as well as the shareholder return policy outlined in the medium-term management plan. Nitto Kohki aims to improve profitability by implementing price revisions across its product range and increasing sales of high-margin and value-added products, while enhancing production efficiency at its new factory to mitigate ongoing challenges.