Nippon Fine Chemical Co., Ltd.
4362・Prime Market・Chemicals
Functional Products
Core segment manufacturing and selling functional chemical products for cosmetics, pharmaceuticals, and industrial applications
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (full year, FY2026 ending March 2026) | ¥26,351 million | ¥28,443 million | ↓ |
| Operating profit (full year, FY2026 ending March 2026) | ¥4,688 million | ¥4,314 million | ↑ |
| Operating margin (full year, FY2026 ending March 2026) | 17.8% | 15.2% | ↑ |
| Segment assets (end of FY2026, March 2026) | ¥34,304 million | ¥32,467 million | ↑ |
| Capital expenditure (increase in tangible and intangible fixed assets, FY2026 ending March 2026) | ¥3,975 million | ¥2,390 million | ↑ |
| Depreciation (FY2026 ending March 2026) | ¥1,358 million | ¥1,165 million | ↑ |
Business Details
Manufactures and sells / procures and sells cosmetic raw materials (functional oils, phospholipids, bioactive substances), pharmaceutical phospholipids, industrial wool grease derivatives, functional coating agents, resin additives, vegetable oils and fats, and synthetic resin products. Customers are domestic and overseas cosmetics, pharmaceutical, and industrial manufacturers, with a focus on high-value-added products such as sustainable materials and high-purity phospholipids for DDS (drug delivery systems). The segment comprises four business areas: Beauty Care Products, Healthcare Products, Fine Chemical Products, and Trading.
Recent Overview
Revenue declined due to the shrinking Trading business, but strong performance in Healthcare and Fine Chemical Products improved operating margin to 17.8%
In the Functional Products segment for FY2026 (ending March 2026), the Trading business saw a substantial decline in revenue to ¥4,476 million (down 42.9% year on year) due to the departure of one trading subsidiary from the Group under the medium-term management plan, keeping overall segment revenue to ¥26,351 million (down 7.4% year on year). Meanwhile, increased spot demand for contract-manufactured pharmaceutical intermediates and expanded overseas sales of pharmaceutical phospholipids in the Healthcare Products business, along with cost reductions and increased overseas sales in Fine Chemical Products, drove a substantial improvement in operating profit to ¥4,688 million (up 8.7% year on year) and operating margin to 17.8% (up from 15.2% in the prior period). Capital expenditure also increased substantially to ¥3,975 million year on year, accelerating investment to strengthen the production base.
Key Products
Growth Drivers
- Expansion of sales of high-purity pharmaceutical phospholipids to overseas customers (continued increase in overseas sales)
- Expansion of Healthcare Products profitability by capturing spot demand for contract-manufactured pharmaceutical intermediates
- Improved profitability in Fine Chemical Products through cost reductions in industrial wool grease derivatives and increased overseas sales
- Growing demand from European and US brands for sustainable cosmetic raw materials (RSPO, Non-GMO, ISO16128-compliant products)
- R&D investment toward establishing mass-production technology and social implementation of materials for perovskite solar cells
- Strengthened cost competitiveness in Healthcare Products through consolidation of production at a new plant
Risks
- Risk of declining sales in the Beauty Care Products business due to delays in adjusting overseas distribution inventory of functional oils (expected to continue in FY2026 ending March 2026)
- Structural shrinkage of sales scale in the Trading business due to the departure of the trading subsidiary from the Group
- Risk of declining domestic sales of bioactive substances (Beauty Care Products business)
- Downside risk to sales to overseas customers from US tariff policy and renewed trade friction
- Risks from fluctuations in raw material prices (such as wool grease) and foreign exchange rates
- Uncertain continuity of spot demand for contract-manufactured pharmaceutical intermediates, posing a risk factor for volatility in Healthcare Products business performance
Last updated: June 17, 2026