ENVALITH
日本農薬株式会社 logo

NIHON NOHYAKU CO.,LTD.

4997・Prime Market・Chemicals

Official website
日本農薬株式会社 logo
NIHON NOHYAKU CO.,LTD.4997

Business

Nippon Soda Co., Ltd. (Nihon Nohyaku Co., Ltd.), founded in 1928, is Japan's oldest comprehensive agrochemical manufacturer, with the Agrochemicals Business—covering insecticides, fungicides, and herbicides—at its core, alongside a Non-Agrochemical Chemicals Business spanning pharmaceuticals and wood preservative chemicals, as well as peripheral services such as Greening & Landscaping Works and Pesticide Residue Analysis. The company operates through a group of 26 companies, including 15 consolidated subsidiaries and 6 affiliates, and has built a global sales network spanning the United States, Europe, India, Brazil, and Southeast Asia. Its main customers are domestic distributors, JA (agricultural cooperatives), Zen-Noh, and other agrochemical manufacturers, while overseas it has established a direct sales system through local subsidiaries. Net sales for FY2026 (ending March 2026) reached a record high of ¥111,822 million. Its parent company is ADEKA Corporation, with which it is pursuing synergy creation through a capital and business alliance in the life sciences field.

Business Model

The company creates novel active ingredients at its own research institute (Research Center, Kawachinagano City, Osaka Prefecture), and sells agrochemical technical grade active ingredients and formulated products manufactured at domestic plants (Kashima, Saga, Fukushima) through a distribution structure comprising specialty distributors, JA (agricultural cooperatives), and the Zen-Noh network in Japan, and through direct-sales operations run by local subsidiaries (North America, Europe, India, Brazil, etc.) overseas. The company invests ¥7,816 million annually in R&D expenses, aiming to maximize earnings through the global registration expansion of its proprietary active ingredients and the increased sales of priority products. Investment gains from equity-method affiliates (Sipcam Europe, etc.) also contribute to earnings.

Company Strengths

The company holds multiple in-house developed active ingredients, including Benzpyrimoxan, Pyrifluquinazon, Flubendiamide (technical grade active ingredient), and Pyraflufen-ethyl, and continues to expand registrations both domestically and internationally. For the new active ingredient Cybenzoxasulfyl, registration applications were completed in Japan and South Korea in November 2025, with development progressing as a next-generation revenue source. Annual R&D expenses of ¥7,816 million continue to be invested.

Nichino America, Inc. achieved record-high sales driven by increased sales of the insecticides Buprofezin/Fenpyroximate and the herbicide Pyraflufen-ethyl for the Canadian market. Nichino Europe Co., Ltd. fully established a direct sales structure in the UK and Ireland through the business integration of Interagro (UK) Ltd., and also achieved record-high sales.

At the end of FY2026 (ending March 2026), the equity ratio stood at 54.9% (up 4.1 percentage points year on year), with total net assets of ¥87,093 million. The company continued to repay long-term and short-term borrowings, compressing total liabilities to ¥67,869 million. Cash and cash equivalents were secured at ¥18,843 million, reflecting a financial strength that allows continuous funding of R&D and capital expenditure from internal resources.

ENVALITH's Perspective

In FY2025 (ended March 2025), extraordinary losses of ¥4,672 million—including an impairment loss of ¥2,328 million and environmental remediation costs of ¥1,984 million—weighed heavily on net profit, leaving profit attributable to owners of the parent at just ¥2,356 million. In FY2026 (ending March 2026), extraordinary losses shrank sharply to ¥1,250 million (including a settlement payment of ¥1,072 million), and combined with an increase in operating profit, net profit staged a strong recovery to ¥7,228 million (up 206.8% year on year). It should be noted that external factors—increased pest and disease outbreaks in North America due to high temperatures and dry weather, and a weather-driven demand recovery in Europe—contributed to this uplift, but the company's technical promotion activities for its proprietary products, which helped expand sales share, should also be credited.

At Sipcam Nichino Brasil S.A., sales declined year on year due to a combination of weak agricultural commodity prices, aggressive competition from generic products, and reduced pest and disease pressure resulting from cool, wet weather. In addition, a settlement payment of ¥1,072 million related to a robbery incident involving the Brazilian subsidiary was recorded as an extraordinary loss. Improving profitability in Latin America by raising the proportion of proprietary product sales remains an ongoing challenge, and the region continues to carry elevated risk given its high dependence on external factors such as agricultural commodity prices and weather, which warrants continued monitoring.

The company's forecast for FY2027 (ending March 2027) calls for modest growth, with net sales of ¥116,000 million (up 3.7% year on year), operating profit of ¥11,500 million (up 5.7%), and net profit of ¥7,400 million (up 2.4%). However, several downside risks remain, including uncertainty stemming from U.S. trade policy, pricing pressure from generic agrochemicals, the ongoing turnaround at the Indian subsidiary, and foreign exchange volatility (a derivative valuation loss of ¥2,334 million was recorded in FY2026, ending March 2026). The dividend payout ratio stands at an appropriate 39.0% (FY2026, ending March 2026), and the company forecasts an annual dividend of ¥38 (up ¥2 year on year) for FY2027 (ending March 2027).

Growth Strategy

Accelerating the global rollout of proprietary in-house developed products and creating new revenue sources based on the medium-term plan GGS

Registration applications for the in-house developed new active ingredient Cybenzoxasulfyl were completed in Japan and South Korea during FY2026 (ending March 2026). Following approval, the launch is expected to expand the proprietary product portfolio and contribute to sales through high-margin products.

Nichino America, Inc. achieved record-high sales as its technical outreach activities in fruit trees and nuts bore fruit. Nichino Europe Co., Ltd. achieved record-high sales as direct sales in the UK and Ireland gained full momentum following the integration of Interagro (UK) Ltd. In FY2027 (ending March 2027), efforts to strengthen the direct sales structure in Mexico will also be accelerated.

Exclusive domestic distribution of BASF Japan's fruit-tree segment products began in FY2026 (ending March 2026). Together with expanded sales of Corteva Agriscience Japan products, this broadens revenue sources beyond proprietary in-house developed products domestically, strengthening the company's ability to respond to the maturing and increasingly competitive agrochemical market.

The Indian subsidiary, which has continued to struggle due to lost spraying opportunities caused by heavy rainfall in West Asia, will implement restructuring measures in FY2027 (ending March 2027) to work toward a sales recovery and improved profitability. Sales to fellow industry players turned upward in FY2026 (ending March 2026), suggesting early signs of a turnaround.

Through a patent application arising from open innovation with the RIKEN Center for Sustainable Resource Science and an investment in Norin Plant Hospital Co., Ltd., a venture spun out from NARO, the company aims to create new revenue sources in emerging areas such as biopesticides and plant disease diagnostics.

Last updated: July 19, 2026