Nissan Chemical’s agrochem sales up 14% in H1 FY 2015-16

Nissan Chemical posted a 14.1% consolidated sales increase of its agrochemical business to 21,140 million yen in the first half year of fiscal year 2015-16 ended September 30, 2015. Operating income was improved significantly by 57.3% to 6,221 million yen. According to the company, sales volume of paddy rice herbicide ALTAIR was increased in the domestic. Soybean herbicide TARGA and corn & rice herbicide PERMIT had healthy sales in overseas market.

 

According to the company, agrochemical business is transforming from a stable profit sector into a high growth sector main driven by its new paddy rice herbicide ALTAIR, Roundup (glyphosate) and veterinary medical product Fluralaner. Product portfolio is strengthening through in-house developing, acquisition and licensed-in. Nissan acquired Roundup from Monsanto in 2002, acquired fungicide Pulsor (thifluzamide) from Dow in 2009, got licence for insecticide Prevathon from DuPont.

 

Nissan are also expanding its business in many ways. In 2011, the company acquired 3% share of IHARABRAS (leading agro company in Brazil) to strengthen R&D and marketing capabilities in the rapidly growing market in Latin America and established a subsidiary in China in April 2014 for sales support and technical/marketing services. Reconstruction of Biological Research Laboratories for Agro and Pharma segments during FY2010-2017 will cost the company 6.4 billion yen.

 

Nissan Chemical increases its year-end dividend forecast for the agrochemical business to 49.1 billion yen (up 0.6%) for the year ending March 31, 2016. Operating income for the full year is forecast to rise by 1.7% to 11.3 billion yen.