NOF CORPORATION
4403・Prime Market・Chemicals
Functional Chemicals Business
The largest segment of the NOF Group. Manufactures and sells a diverse range of chemical products domestically and internationally.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year, FY2026 (ending March 2026)) | ¥145,751 million | ¥150,915 million | ↓ |
| Operating profit (full year, FY2026 (ending March 2026)) | ¥26,846 million | ¥29,797 million | ↓ |
| Operating margin (full year, FY2026 (ending March 2026)) | 18.4% | 19.7% | ↓ |
| Segment assets (end of FY2026 (ending March 2026)) | ¥141,835 million | ¥133,322 million | ↑ |
| Depreciation (full year, FY2026 (ending March 2026)) | ¥3,745 million | ¥3,614 million | ↑ |
| Increase in tangible and intangible fixed assets (full year, FY2026 (ending March 2026)) | ¥5,888 million | ¥6,374 million | ↓ |
Business Details
Manufactures and sells Fatty Acids & Fatty Acid Derivatives, Surfactants, EO/PO Derivatives (Ethylene Oxide / Propylene Oxide Derivatives), Organic Peroxides, petrochemical products (polybutene, etc.), functional polymers, electronic materials (liquid crystal display-related materials, etc.), Special Rust Preventive Agents, and other products. Serves a wide range of domestic and overseas industries (toiletries, automotive, synthetic resin/resin processing, environment/energy, etc.) as customers, and is the core segment accounting for approximately 56.5% of the Group's consolidated net sales. Ryohin Keikaku Co., Ltd. is disclosed as a major customer (net sales of ¥29,475 million, 11.4% of consolidated net sales).
Recent Overview
Sluggish demand across major product groups led to declines in both net sales and operating profit year on year.
In FY2026 (ending March 2026), the Functional Chemicals Business recorded net sales of ¥145,751 million (down 3.4% year on year) and operating profit of ¥26,846 million (down 9.9% year on year). Fatty acid derivatives for environment/energy-related applications in Asia, surfactants for toiletry-related applications, EO/PO derivatives for synthetic resin/resin processing, and organic peroxides for domestic and Asian markets all trended weakly, while Special Rust Preventive Agents remained steady both domestically and internationally. For FY2027 (ending March 2027), net sales are forecast at ¥155,500 million (up 6.7% year on year) and operating profit at ¥26,400 million (down 1.7% year on year), representing an increase in sales but a decrease in profit. Steady demand is expected for cosmetics-related raw materials and the ODM business, while the forecast factors in the impact of rising raw material and fuel prices and supply chain effects due to escalating tensions in the Middle East.
Key Products
Growth Drivers
- Steady trend in domestic and overseas automotive-related demand for Special Rust Preventive Agents
- Steady expansion of demand for cosmetics raw materials and the ODM business in cosmetics-related products
- Expansion of business areas centered on the three fields of "Life & Healthcare," "Environment & Energy," and "Electronics & Information"
- Promotion of the shift toward a solutions-based business model
- Development of next-generation materials and technologies in the electronics field (open innovation program based on commissioned research with academia)
- Productivity improvements and smart factory transformation through the use of DX and MI (Materials Informatics)
Risks
- Risk of continued weak environment/energy-related demand in Asia (especially China)
- Rising raw material and fuel prices and impact on the supply chain due to escalating tensions in the Middle East
- Impact of US trade and tariff policy on the chemical products and automotive industries
- Delayed recovery in domestic demand for toiletry and synthetic resin processing applications
- Prolonged weakness in domestic and Asian demand for organic peroxides
- Risk of decreased operating profit despite increased sales in the next-period forecast, due to rising fixed costs
Last updated: July 16, 2026