NIHON NOHYAKU CO.,LTD.

Business Details

The core business manufacturing and selling insecticides, fungicides, insecticide-fungicide combinations, herbicides, agrochemical technical grade active ingredients, and other products. Domestically, sales are made through distributor networks, JA (Japan Agricultural Cooperatives), Zen-Noh, and agrochemical manufacturers. Overseas, the business operates globally through consolidated and equity-method subsidiaries in the United States (Nichino America), India (Nichino India), Brazil (Sipcam Nichino Brasil), Europe (Nichino Europe), Taiwan, Southeast Asia, Central America, and other regions. Of the ¥105,455 million in sales to external customers in FY2026 (ending March 2026), the overseas ratio continued to remain at a high level.

Recent Overview

Sales and operating income both reached record-high levels, driven by increased sales in Japan, North America, and Europe.

In FY2026 (ending March 2026), Agrochemicals Business sales were ¥105,455 million (up 11.5% year on year), and operating income was ¥10,666 million (up 22.2% year on year). Domestically, products for paddy rice performed favorably due to an increase in paddy rice planted area driven by rising rice prices. In North America, Nichino America, Inc. achieved record-high sales. In Europe, the business integration of Interagro (UK) Ltd. enabled full-scale direct sales operations in the UK and Ireland, and Nichino Europe Co., Ltd. also achieved record-high sales. On the other hand, in Brazil, Sipcam Nichino Brasil S.A.'s sales declined year on year due to sluggish agricultural commodity prices, competition from generic products, and low temperatures and heavy rainfall. At the US subsidiary, compensation income of ¥637 million related to the use of agrochemical registration data boosted ordinary income. Five companies, including Nichino Mexico, Nichino do Brasil Agroquimicos, and Interagro (UK) Ltd., were newly added to the scope of consolidation.

Key Products

Growth Drivers

• Expansion in demand for paddy rice agrochemicals due to an increase in domestic paddy rice planted area driven by rising rice prices (also supported by an increase in pest outbreaks such as stink bugs)
• Nichino America, Inc. achieved record-high sales driven by increased sales of the insecticides Buprofezin and Fenpyroximate in North America and the herbicide Pyraflufen-ethyl for Canada
• Full-scale direct sales operations in the UK and Ireland following the business integration of Interagro (UK) Ltd. in Europe, and Nichino Europe Co., Ltd.'s record-high sales
• Future revenue creation from the completion of registration applications for the novel active ingredient Cybenzoxasulfyl in Japan and South Korea
• Expansion of the domestic portfolio through the start of exclusive domestic distribution of BASF Japan's fruit-tree segment products
• Expansion of the Central and South American business through strengthened direct sales operations in Mexico (Nichino Mexico)
• Increase in equity-method investment income (¥842 million, up ¥334 million year on year) due to strong performance of European equity-method affiliates (Sipcam Europe S.p.A. and others)
• Deepening of business strategy and acceleration of global expansion under the medium-term management plan GGS (Growing Global for Sustainability)

Risks

• Risk of sluggish sales at the Indian subsidiary (Nichino India Pvt. Ltd.) (lost spraying opportunities due to heavy rainfall in West Asia; restructuring measures currently being implemented)
• Risk of decreased sales at the Brazilian subsidiary (Sipcam Nichino Brasil S.A.) due to sluggish agricultural commodity prices, aggressive competition from generic agrochemicals, and low temperatures and heavy rainfall
• Foreign exchange risk (in particular, fluctuations in the Brazilian real, US dollar, and euro against the yen directly affect performance)
• Loss of agrochemical spraying opportunities due to unusual weather and abnormal climate conditions (heavy rainfall in West Asia, unusual weather in parts of Europe, etc.)
• Risk of price competition intensifying with generic agrochemicals and price declines due to increased distribution inventories for certain products (manifesting in Central and South America)
• Tightening requirements under agrochemical registration systems in various countries, and increasing costs and lengthening timelines for new agrochemical development
• Risk to the North American business from uncertainty stemming from US trade policy trends (tariffs, etc.)
• Litigation risk at the Brazilian subsidiary (Sipcam Nichino Brasil S.A.) (a settlement with FMC resulted in a special loss of ¥1,072 million recorded in the current period; the litigation has been concluded)