Kobe Natural Materials & Chemistry Revises Full-Year Earnings Forecast for Fiscal Year Ending March 2027 | July 21, 2026

Performance Overview

Kobe Natural Materials & Chemistry has revised its full-year earnings forecast for fiscal year ending March 2027, lowering net sales to 2,118 million yen (previous forecast: 2,000 million yen), operating profit to 51 million yen (previously 95 million yen), and net income to 41 million yen (previously 63 million yen). Although increased order volume has exceeded expectations in sales, profits are expected to fall short due to rising costs and delays in manufacturing processes. Cost increases are attributed to longer processing times caused by verification and improvement of manufacturing procedures, as well as increased raw material costs due to lower utilization in the pharmaceutical sector. The company will continue to focus on acquiring medium- to long-term projects and expanding its business.

Forecasts and Impact on Shareholders

Sales are expected to remain steady, but profits are projected to fall short of expectations due to increased costs. The company will pursue ongoing medium- to long-term project acquisition and business expansion to improve profitability. For investors, while sales growth is promising, challenges remain in improving profits, highlighting the importance of cost management and securing new projects. The impact on dividends and share prices remains unclear, but continued focus on strategic improvements is essential.