TOHO CHEMICAL INDUSTRY COMPANY, LIMITED
4409・Standard Market・Chemicals
Surfactants
Toho Chemical Industry's largest segment. Manufactures and sells multi-application surfactants for cosmetics, civil engineering, agrochemicals, and other uses
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales | ¥25,460 million (FY2026, ending March 2026) | ¥26,307 million (FY2025, ended March 2025) | ↓ |
| Segment profit | ¥791 million (FY2026, ending March 2026) | ¥737 million (FY2025, ended March 2025) | ↑ |
| Segment profit margin | 3.1% (FY2026, ending March 2026) | 2.8% (FY2025, ended March 2025) | ↑ |
| Change in sales year on year | -¥847 million (-3.2%) | — | ↓ |
| Change in segment profit year on year | +¥54 million | — | ↑ |
Business Details
This segment manufactures and sells Cosmetic Raw Materials, Plastic Additives, Civil Engineering & Construction Chemicals, Paper & Pulp Chemicals, Agrochemical Adjuvants, Textile Auxiliaries, and other products. In addition to domestic manufacturing, the company maintains a production and sales structure in China through Toho Chemical (Shanghai) Co., Ltd. and Toho Kabou Trading (Shanghai) Co., Ltd. This segment accounted for approximately 47.5% (¥25,460 million) of consolidated net sales in FY2026 (ending March 2026). Sales are conducted broadly across Japan, Asia, and other regions, but the segment as a whole recorded a decrease in sales year on year during the period, weighed down by lower sales of Civil Engineering & Construction Chemicals and other products.
Recent Overview
Despite lower sales, segment profit increased due to improved product mix
In the surfactants segment for FY2026 (ending March 2026), decreased sales in Civil Engineering & Construction Chemicals (weak sales of concrete-related chemicals both domestically and overseas), Cosmetic Raw Materials (domestic weakness), Textile Auxiliaries (overseas decline), and Paper & Pulp Chemicals combined to bring net sales to ¥25,460 million, down ¥847 million (3.2%) year on year. On the other hand, increased sales of Agrochemical Adjuvants and Plastic Additives, along with margin improvement resulting from changes in sales mix, enabled segment profit to reach ¥791 million (profit margin of 3.1%), up ¥54 million year on year. Consolidated subsidiary Toho Chemical (Shanghai) Co., Ltd. temporarily suspended operation of some equipment due to building reinforcement work in preparation for the expansion of pressurized reaction equipment, and the company's operating profit declined year on year.
Key Products
Growth Drivers
- Improved profit margin through changes in sales composition (shift toward higher-margin products)
- Expansion of domestic and overseas sales of Agrochemical Adjuvants and Plastic Additives
- Expanded production capacity at Toho Chemical (Shanghai) Co., Ltd. through the addition of pressurized reaction equipment (full-scale operation following completion of building reinforcement work)
- Growth in sales of Cosmetic Raw Materials to overseas markets
- Portfolio shift from general-purpose products to high-value-added products in response to intensifying competition from emerging-market companies
Risks
- Continued and expanding shift by major domestic users of Cosmetic Raw Materials toward procurement of low-priced imports
- Deterioration in petrochemical product market conditions and intensifying competition due to prolonged economic slowdown in China
- Sluggish domestic and overseas demand for Civil Engineering & Construction Chemicals (stagnant construction market)
- Risk of deteriorating profitability due to sharp rises in raw material prices and procurement difficulties from a de facto closure of the Strait of Hormuz
- Rising costs of imported raw materials due to yen depreciation and delays in passing on costs through pricing
- Risk of prolonged operational constraints at Toho Chemical (Shanghai) Co., Ltd. due to building construction work
Last updated: June 24, 2026