Top Message

I would like to express my sincere gratitude to our shareholders for your continued support.

I am delighted to report an overview of the consolidated fiscal year (from April 1, 2025 to March 31, 2026).

During the fiscal year under review, the Japanese economy remained generally firm, supported by steady domestic demand such as capital investment and personal consumption. However, economic activity was somewhat subdued, reflecting the impact of geopolitical tensions in the Middle East that began to escalate at the end of February.

Looking ahead, the outlook is expected to remain uncertain, with concerns over further increases in energy-related prices and potential supply constraints depending on how these tensions evolve.

Against this backdrop, the Group worked to further strengthen its management foundation, while promoting a focused allocation of resources to products expected to contribute to earnings expansion.

As a result, consolidated net sales for the fiscal year decreased by 5.2% year on year to ¥33,796 million, primarily due to the withdrawal of one trading subsidiary from the Group in the trading business of the Functional Products segment, in line with the Mid-term Management Plan.

In terms of profit, operating income increased by 9.1% year on year to ¥5,341 million, supported by a temporary increase in contract manufacturing of pharmaceutical intermediates in the healthcare field of the Functional Products segment, as well as improved profitability in the fine chemicals field. Ordinary income rose by 6.9% to ¥5,570 million, and profit attributable to owners of parent increased by 14.4% to ¥4,428 million, partly reflecting gains on the sale of investment securities.

The Group intends to quickly establish a foundation for further growth and to build a strong management structure to overcome the severe environment in which the Group is operating.

Finally I would once again like to thank all our shareholders for their continued support.

May 2026

NIPPON FINE CHEMICAL CO., LTD.
President and CEO
Hiroshi Yano