ISHIHARA SANGYO KAISHA,LTD.

Business Details

This segment manufactures and sells agrochemicals (herbicides, insecticides, fungicides, etc.), veterinary pharmaceuticals, active pharmaceutical ingredients (API), and organic intermediates. Domestic sales are handled through Ishihara Bio Science Co., Ltd., while overseas sales are overseen by ISK BIOSCIENCES EUROPE N.V. for Europe, the Middle East, and Africa, and ISK BIOSCIENCES CORP. for the Americas. In FY2026 (ending March 2026), special demand for fungicides driven by weather factors in Europe and growth in strategic growth agents in the Americas and Asia contributed to substantial increases in both sales and operating profit. With an operating margin of 22.2%, well above the company-wide average (12.3%), this is a highly profitable segment.

Recent Overview

Sales and profit both increased substantially, driven by special weather-related demand in Europe and growth of strategic agents in the Americas

In FY2026 (ending March 2026), the Organic Chemicals Business achieved sales of ¥82,619 million (up ¥14,848 million year on year) and operating profit of ¥18,330 million (up ¥5,896 million year on year). In Europe, fungicide sales performed well due to weather factors, contributing significantly to profitability. In the Americas, growth strategy herbicides expanded, while in Asia, sales of herbicides and insecticides increased. The healthcare business (veterinary pharmaceuticals and active pharmaceutical ingredients) also saw increased sales year on year, though the impact on the segment overall was limited. For FY2027 (ending March 2027), a decline in sales and profit is expected due to the fading of the prior year's special demand in Europe and increased joint development expenses for new agrochemical agents, among other factors.

Key Products

Growth Drivers

• Strong agrochemical (fungicide, insecticide) sales in Europe: contributed to by weather factors and a stable supply system
• Growth of growth strategy agents (herbicides) in the Americas: driven by progress in market development
• Steady performance of herbicides and insecticides in the Asian market: continued expansion trend in India, Taiwan, and other markets
• Expansion of business foundation through the new consolidation of ISK BIOSCIENCES INDIA PVT. LTD.
• Diversification of earnings through expanded sales of Veterinary Pharmaceutical PANOQUELL® in the United States and global rollout
• Promotion of development and commercialization of new agrochemicals and veterinary pharmaceuticals under the medium-term management plan "Vision 2030 Stage II"
• Creation of new revenue sources through development and commercialization in the biologicals field

Risks

• Risk of decreased revenue in FY2027 (ending March 2027) due to the fading of special weather-related demand in Europe seen in the prior period
• Risk of profit pressure from increased joint development costs for new agrochemical agents with other companies
• Risk of increased research and development expenses due to delays in obtaining full approval for Veterinary Pharmaceutical PANOQUELL® in the United States
• Intensifying price competition with Chinese-made generic agrochemicals (particularly in the Americas and Asian markets)
• Impact on sales and costs from changes in U.S. trade policy (tariffs, import restrictions)
• Foreign exchange rate fluctuations (risk of reduced overseas sales value when the yen appreciates)
• Regulatory risk related to obtaining and maintaining agrochemical registrations (review trends of authorities in each country)
• Risk of rising manufacturing costs due to persistently high raw material prices