TODA KOGYO CORP.
4100・Standard Market・Chemicals
Functional Pigments
A "Reconstruction/Transition + Profit Base" segment handling pigments and environment-related materials
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (to External Customers) | ¥7,807 million | ¥8,054 million | ↓ |
| Net Sales (Segment Total, Including Intersegment) | ¥7,815 million | ¥8,071 million | ↓ |
| Segment Profit | ¥1,498 million | ¥1,009 million | ↑ |
| Segment Assets | ¥7,428 million | ¥7,872 million | ↓ |
| Depreciation | ¥44 million | ¥39 million | ↑ |
| Increase in Property, Plant and Equipment and Intangible Assets | ¥172 million | ¥438 million | ↓ |
Business Details
This segment manufactures and sells Coloring Pigments & Toner Materials, Catalyst Materials & Recording Materials, and Environment-related Materials. The Company serves as the core entity, with Tokyo Shikizai Kogyo Co., Ltd. (Organic Pigments) and Zhejiang Huayuan Applied New Materials Co., Ltd. (Inorganic Pigments) handling the respective businesses. Under Vision2026, Coloring Pigments & Toner Materials is positioned as a "reconstruction/transition business," catalysts and similar products as a "profit base business," and Environment-related Materials (CO₂ Separation & Capture Materials, etc.) as a "next-generation business," with rationalization efforts and new material development being pursued in parallel.
Recent Overview
Net sales decreased 3.2% year on year, but segment profit increased 48.4% year on year due to improved profit margins
In the Functional Pigments segment for FY2026 (ending March 2026), while demand for recording materials remained strong and coloring materials recovered, toner materials were affected by inventory adjustments at certain customers, resulting in net sales of ¥7,815 million (down 3.2% year on year). On the other hand, the effects of cost reduction, expense reduction, and price correction activities for products became apparent, leading to a significant improvement in segment profit to ¥1,498 million (up 48.4% year on year). In the next fiscal year (FY2027, ending March 2027), continued strong demand for catalyst materials and recording materials, together with ongoing rationalization activities, is expected to support stable profit generation.
Key Products
Growth Drivers
- Sales growth driven by strong demand for catalyst materials and recording materials (expected to continue in the next fiscal year)
- Improvement in segment profit margin through price correction activities, cost reduction, and expense reduction for products (segment profit up 48.4% year on year in the current fiscal year)
- Recovery in demand for coloring materials
- Progress in development toward next-generation commercialization of Environment-related Materials (CO₂ Separation & Capture Materials, etc.) and intensive allocation of management resources
Risks
- Risk of customer inventory adjustments and demand decline in toner materials
- Profit pressure from rising energy costs and raw material prices
- Deterioration of the business environment in China (worsening Japan-China relations, geopolitical risk)
- Risk of delayed commercialization of Environment-related Materials
- Risk of global economic downturn due to trends in U.S. trade policy
Last updated: June 24, 2026