Nihon Nohyaku posted flat agrochemical sales in 2011

Sales of Nihon Nohyaku’s agrochemical business were ¥33,431 million in fiscal year of 2011 ended September 30th, 2011, almost flat compared with ¥33,464 million in fiscal 2010.

Domestic agrochemical sales decreased by 0.2% to ¥20,211 million. With the decreasing trend in agrochemical demand and the effects of slumping paddy rice herbicides and the Great East Japan Earthquake, sales figures for domestic agrochemical sales as a whole were basically unchanged from those of the same term of the previous year. However, sales of horticultural insecticide Colt (active ingredient: pyrifluquinazon), which was jointly developed with Kumiai Chemical Industry, exceeded expectations as its novel mode of action and biological effectiveness drew interest and praise from the market. The company also worked to promote and expand sales of main products such as horticultural insecticide Phoenix (flubendiamide). In addition to promoting and expanding sales of main products, the company made efforts to rebuild sales strategies including the use of new distributors.

In overseas agrochemical sales, sales were favorable in Asia and the Americas, increased by 0.03% to ¥13,220 million. Asia accounted for 55.2% of the company’s total overseas sales, followed by the Americas (23.9%), Europe (16.8%) and the other areas (4.1%). In terms of individual products, in India, sales figures grew for paddy rice insecticide Applaud. In addition, the company obtained registration and began sales of Phoenix (Phoenix is registered in different trade names in every country) in 6 countries including Taiwan. Furthermore, the company achieved growth in sales of Phoenix technical grade and in overall performance figures for Nichino America, Inc. in the United States. Nevertheless, due to the effects of the strong yen, overseas agrochemical sales figures as a whole were only slightly higher than those of the previous year. The company hired “local promoters” in Brazil and India to promote company’s products and to research market information. In addition, with the goal of further sales expansion in China and other countries in Asia, the company has been making steady progress with preparations for local incorporation of their Shanghai office.

Considering the tough environment surrounding the agrochemical industry, the company forecasts sales will decline by 2.3% to ¥39,500 million in fiscal 2012, and net profit will slip by 26.5% to ¥1,600 million.