Nippon Soda Co., Ltd. TSE:4041

Nippon Soda : Consolidated Financial Results Summary for the Nine Months of the Fiscal Year Ending March 31, 2023

Published February 2, 2023 at 11:00 p.m. UTC

Source: MarketScreener

Consolidated Financial Results Summary for the Nine Months of the Fiscal Year Ending March 31, 2023

Nippon Soda Co., Ltd.

February 3, 2023

Structural formula of a novel fungicide "Kinoprol" (trademark: MIGIWA) that developed by Nippon Soda.

2-[2-(7,8-difluoro-2-methylquinolin-3-yloxy)-6-fluorophenyl]propan-2-ol1

Contents

1 Consolidated Financial Results for the Nine Months of the Fiscal Year Ending March 31, 2023

・Overview	3
・Performance by Segment	4
・Performance Summary of Chemicals Business	5
・Performance Summary of Agro Products Business	6

Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2023

	・Overview of Performance Forecast	7
	・Performance Forecast by Segment	8

３	Reference Material	9～10

Overview

（Billions of yen）	2022/3 3Q	2023/3 3Q	Change (amount)	Change (%)

Net Sales	100.60	124.25	23.65	23.5％
Operating profit	6.44	14.78	8.34	129.6％
Share of profit (loss) of entities accounted for using equity method	1.19	4.51	3.32	279.2％
Ordinary profit	8.58	20.85	12.27	143.0％
Profit attributable to owners of parent	5.69	13.28	7.58	133.2％

Net Income per Share (Yen)	203.8	476.3	272.4	133.7％

Exchange rate（JPY/USD）	110.9	135.0	24.1	21.7％

Exchange rate（JPY/EUR）	130.5	140.3	9.8	7.5％

・Increased sales in the Agro Products, Chemicals and Trading, and increased plant construction work in the Construction business. ・Revised sales price due to a substantial rise in price of raw materials and fuel.

・Increased share of profit of entities accounted for using equity method. ・Exchange rate changed for the weak yen.

【Quarterly net sales】	【Quarterly operating profit】
（Billions of yen）	（Billions of yen）

											5.5	5.8		5.8
			52

				40	40	44
		36
32	33											3.1
								3.0

								2.3
									1.2
'22/3				'23/3				'22/3				'23/3
1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q

【Operating profit (Year-on-Year)】

（Billions of yen）

		5.9	(8.6)
			Rate
	9.0		difference	2.1	14.8
		(2.6)
	Rate			Inventory
	difference		valuation gain
	5.0			2.4
6.4		Operating profit
		Difference: 8.3
'22/3	Price	Volume	Material	Others	'23/3
3Q	difference	difference	purchase		3Q
			plice		3
			difference

Performance by Segment

		Net sales			Operating profit		OP margin
(Billions of yen)	2022/3 3Q	2023/3 3Q	Change	Change	2022/3 3Q	2023/3 3Q	Change	Change	2023/3 3Q
(amount)	(%)	(amount)	(%)
Chemicals	30.18	34.74	4.56	15.1％	2.24	3.41	1.17	52.4％	9.8％
Agro Products	28.46	41.15	12.69	44.6％	1.17	7.95	6.78	579.6％	19.3％
Trading	26.52	29.75	3.22	12.1％	0.94	1.25	0.31	32.7％	4.2％
Transportation and	3.35	3.24	(0.11)	(3.2％)	0.54	0.55	0.02	3.2％	17.1％
Warehousing

Construction	4.95	8.07	3.12	63.1％	0.85	0.92	0.07	8.7％	11.4％
Others	7.14	7.30	0.17	2.3％	0.78	0.39	(0.39)	(50.2％)	5.3％
Adjustments	-	-	-	-	(0.08)	0.30	0.39	-	-
Total	100.60	124.25	23.65	23.5％	6.44	14.78	8.34	129.6％	11.9％

・Chemicals :

Increased sales of pharmaceuticals additive NISSO HPC, KrF photoresist material VP-POLYMER and secondary battery materials. Decreased sales in the industrial chemicals and eco-business products due to implementation of structural reforms in the caustic potash and related businesses.

Revision of sales price reflecting the substantial rise in the price of raw materials and fuel.

・Agro Products :

Growth in sales for export of insecticide MOSPILAN, fungicide TOPSIN-M, PANCHO, PYCHILOCK and acaricides NISSORUN due to robust demand overseas.

・Trading : Increased sales of various organic and inorganic products.

・Transportation and Warehousing : Increased sales of warehousing and decreased sales of transportation.

・Construction : Increased plant construction work.

Performance Summary of Chemicals Business

(Billions of yen)	2022/3 3Q	2023/3 3Q	Change	Main factors of change
(amount)

Net sales	30.18	34.74	4.56
Industrial chemicals	9.92	8.77	(1.15)	Caustic soda and Phosphorus chloride↑
Caustic potash, Potassium carbonate and Sodium cyanide↓

Fine chemicals	6.33	7.79	1.46	Secondary battery materials↑
Color developers for thermal paper↑

Specialty chemicals	4.95	5.43	0.48	VP-POLYMER↑
Eco-business	4.59	3.63	(0.96)	HIDION↑, NISSO HI-CHLON↓
Pharmaceuticals &	6.05	8.02	1.97	NISSO HPC↑ , Active pharmaceutical ingredients↑
industrial fungicides

Subsidiaries sales,	(1.65)	1.11	2.76
elimination of transactions

Operating profit	2.24	3.41	1.17

・Industrial Chemicals : Increased sales of caustic soda and phosphorus chloride, and decreased sales for export of sodium cyanide. Terminated the production of caustic potash and potassium carbonate, etc., due to implementation of structural reform.

・Specialty chemicals : Growth in sales of KrF photoresist material VP-POLYMER.

・Eco-business : Decreased sales for export of water treatment agent NISSO HI-CHLON.

【Quarterly net sales】	【Quarterly operating profit】	【Operating profit (Year-on-Year)】
（Billions of yen）	（Billions of yen）	（Billions of yen）

5.0

(0.9)

1.8

Rate

(4.4)

difference

Price

1.2

1.3

difference

1.0

(0.6)

1.4

3.4

0.8

Inventory

2.2

Operating profit

0.2

0.6

valuation gain

Difference: 1.2

0.6

'22/3

'23/3

'22/3

'23/3

'22/3

Price

Volume

Material

Others

'23/3

difference

difference purchase

plice

difference