AgroPages-OAT Agrio’s sales up 11% in Q1 2016-Agricultural news

OAT Agrio’s sales up 11% in Q1 2016

In the first three months of the fiscal year ending December 31, 2016, employment conditions in Japan continued a trend of improvement owing to such factors as economic measures taken by the Japanese government. On the other hand, concerns regarding the state of the global economy increased due to factors such as the sharp decline in crude oil prices owing to economic slowdowns in China and other developing countries. As a result, since the beginning of the year, the yen has appreciated, share prices have declined considerably, and the economic outlook has become increasingly uncertain.

OAT Agrio’s net sales and operating income tend to be higher in the first quarter of the consolidated fiscal year compared with the other three quarters because it is the period for deliveries in preparation for peak demand seasons, particularly with respect to the domestic agrochemicals business.

As a result, in the first three months (ended March 31, 2016) under review, net sales was ¥5,478 million, up ¥519 million or 10.5% year on year, operating income was ¥1,648 million, up ¥392 million or 31.3% year on year, ordinary income was ¥1,568 million, up ¥317 million or 25.3% year on year and profit attributable to owners of parent was ¥1,087 million, up ¥265 million or 32.4% year on year.

The Group has a single business segment, the AgriTechno Business. The operating results by business fields in this segment are as follows.

In the agrochemicals field, early shipment volumes ahead of peak demand season in the domestic market were low and net sales in Japan declined year on year, but sales to overseas markets rose sharply on strong shipment volume of the acaricide Cyflumetofen to North America and South America. As a result, overall net sales in the agrochemicals field increased ¥464 million or 10.7% year on year to ¥4,796 million.

In the fertilizer and biostimulant field, shipments in Japan were strong. In the biostimulant field, net sales increased on growth in shipments of Atonik to Europe. As a result, overall net sales in the fertilizer and biostimulant field increased ¥54 million or 8.7% year on year to ¥682 million.