Nankai Chemical ＜4040＞ uses infinite seawater to provide value for social infrastructure and industrial infrastructure and value for reducing environmental impact. Specifically, we are developing a chemical business that manufactures and sells basic chemicals, functional chemicals, pesticides, etc., environmental recycling centered on recycling waste sulfuric acid discharged from factories, and various salt businesses that manufacture and sell snow-melting salt, etc. As a century-old enterprise founded in 1906, it plays an important role in supporting industrial and social infrastructure.
For the fiscal year ending 2024/3, sales increased 1.9% from the previous fiscal year to 19,987 million yen, and operating profit increased 96.4% to 1,564 million yen. The basic chemicals and various salt businesses and the decline in raw fuel and raw material prices covered environmental recycling, resulting in a significant increase in profit. For the fiscal year ending 2025/3, sales are expected to increase 5.2% from the previous fiscal year to 21,030 million yen, and operating profit is expected to decrease 31.6% from the same period to 1,070 million yen. Sales are expected to increase against the backdrop of steady demand, but operating profit is expected to decline due to an increase in sales and administration expenses such as freight rates.
Although there are differences in market conditions, the medium-term management plan with the fiscal year ending 2027/3 as the final year targets 24,000 million yen in sales, an ordinary profit margin of 8% (1920 million yen), and an ROE of 10% or more. It is a policy to capture heightened environmental awareness and strengthen the environmental recycling business. Furthermore, shareholder returns are implemented based on dividends, and we aim for stable and continuous dividend increases. The dividend per share for the fiscal year ending 2025/3 is expected to be 55.00 yen, an increase of 5.00 yen from the previous fiscal year.