Message from the President

  • Image: Naoki Kurose, Representative Director President and CEO

We would like to express our sincere appreciation for your continued support of the Moriroku Group.
On April 1st, 2025, Moriroku Holdings took a new step forward by integrating two operating companies, Moriroku Technology and Moriroku Chemicals, into a single entity, and changed its trade name to "MORIROKU COMPANY, LTD.” With integrated management that combines the functions of a manufacturer with those of a trading company, we will maximize the resulting synergy to accelerate our growth as we move forward.

Review of FYE March 2025 Results

In the automotive industry, amid the weaker yen, while sales in Japan and North America remained firm, those in China and Asia declined, resulting in a harsh business environment. In the chemicals industry as well, market conditions deteriorated due to declining demand in China .
In this environment, net sales increased 0.4% from the previous fiscal year to 146.1 billion yen, supported by solid demand in Japan and North America. Operating income fell by 27.5% to 4.1 billion yen as production cuts in China and Asia outweighed efforts to improve costs and adjust sales prices.
Additionally, as part of structural reforms aimed at improving profitability, we decided to transfer an underperforming subsidiary in Mexico.. In China, we recorded impairment losses on noncurrent assets. Consequently, we recorded extraordinary losses totaling 11.7 billion yen, and loss attributable to owners of parent came to 7.8 billion yen, compared with profit 3 billion yen in the previous fiscal year.
While our business results in FYE March 2025 were challenging, with prospects for the elimination of unprofitable divisions on the horizon, we believe we have the foundation in place for future growth.

Outlook for FYE March 2026

We forecast earnings for FYE March 2026 as follows: net sales of 137.0 billion yen, a decrease of 6.3% from the previous fiscal year; operating income of 5.0 billion yen, an increase of 20.9%; and profit attributable to owners of parent of 3.2 billion yen, compared to a loss of 7.8 billion yen in the previous fiscal year. We assume an exchange rate of 140.0 yen per U.S. dollar, 12.6 yen stronger than the previous fiscal year.
While net sales are expected to decline due to the impact of the stronger yen, profitability will improve due to the absence of the one-time extraordinary loss recorded in the previous fiscal year, combined with our efforts to adjust sales prices and enhance our high-efficiency production structure. Although the future impact of U.S. tariffs is uncertain, we are not assuming a material impact on our earnings forecast.

Shareholder Return

To ensure continuous and stable dividend payments that are not affected by our business results, we use the dividend on equity ratio (DOE) as an indicator and aim to raise it to 3.0% by FYE March 2028. Based on this policy, for FYE March 2026, we plan to pay a full-year dividend of 115.0 yen, comprising interim and year-end dividends of 57.5 yen each, with a DOE of 2.7%.

Aiming for Growth in the Medium to Long Term

As the Moriroku Group marks its 362nd anniversary, we have redefined our ideal shape as a corporation from a long-term perspective and created our 2035 Vision in order to continue meeting the shifting challenges of the times. With its mission of "Delivering valuable solutions to society through the power of chemistry and the craftsmanship of monozukuri (manufacturing)" the Moriroku Group aims to achieve sustainable growth and enhance its corporate value. To realize this Vision, we launched our 14th Mid-Term Management Plan, covering FYE March 2026 to FYE March 2028. Under this plan, we have adopted "Pioneering the Future through Agile Management" as our basic policy, and will respond agilely and flexibly to change, strengthening our adaptability and competitiveness. Moreover, alongside promoting priority investments in sectors where we anticipate growth and the enhancement of our business structure, we will deploy our business strategy and corporate function strategy in a unified manner as we aim to achieve our 2035 Vision. As part of our financial strategy, we have set targets of 5.0 billion yen in operating income and a ROE of 5% or higher for FYE March 2026. For FYE March 2028, the final year of the Plan, we aim to achieve an operating income growth rate of 110% or higher over FYE March 2026 and an ROE of 6% or higher. Further, we have set numerical targets for three non-financial goals: improving employee engagement, increasing the number of women promoted to managerial positions, and reducing CO2 emissions. We will continue to make every effort to achieve sustainable growth and enhance our corporate value, striving to become a company trusted by all our stakeholders. We sincerely appreciate your continued support.

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