Nitto Kohki H1 profit plunges 33.7% amid plant relocation, higher costs

Nitto Kohki Co. reported first-half fiscal year 2025 (April 2025 - September 2025) sales of JPY 13.17 billion, a 2.4% year-over-year decrease. Operating profit fell 33.7% year-over-year to JPY 920 million. This was attributed to increased fixed costs from reduced capacity utilization due to plant relocation and higher operating expenses for the new facility. Extraordinary losses totaled JPY 448 million, contributing to an 88.8% decline in profit attributable to owners of parent, reaching JPY 105 million.

The company's full-year FY2025 plan forecasts sales of JPY 27.3 billion (+0.2% YoY) and operating profit of JPY 1.5 billion (-36.0% YoY). Despite the revised earnings forecast, Nitto Kohki plans an annual dividend of JPY 40 per share, reflecting a dividend payout ratio of 115.2%. This decision aligns with its Medium-Term Management Plan's cash allocation strategy.

The decline in profitability was also influenced by currency exchange impacts, particularly from the appreciation of the Thai baht, which increased the cost of sales. Overseas sales decreased by 3.0% year-over-year, largely due to weakness in Australia and Europe, while sales in Japan also slowed.