Japan-based Kumiai Chemical Industry Company has reported its first-quarter FY2026 results, with sales of its herbicide AXEEV rising during the period. The development is being closely watched by investors in PI Industries, which supplies the key active ingredient Pyroxasulfone used in the product.
AXEEV is one of Kumiai’s major herbicide products in global markets, and its performance is considered an important indicator for PI Industries’ business prospects. The Indian agrochemical firm manufactures and supplies Pyroxasulfone, making Kumiai’s sales trends relevant for assessing demand.
During the first quarter of FY2026 (November 2025 to January 2026), Kumiai reported that net sales of AXEEV increased by ¥2.2 billion year-on-year. However, regional performance remained mixed.
In Australia, shipments of the herbicide declined as generic competitors entered the market, affecting demand for the branded product. In contrast, sales in the United States increased, supported by stronger promotional efforts and initiatives aimed at sustaining demand ahead of rising competition.
Despite the quarterly improvement, Kumiai has maintained its full-year FY2026 guidance, which projects a year-on-year decline of around 11% in AXEEV sales, equivalent to a drop of about ¥8.1 billion. The company also expects broader financial performance to weaken during the year.
According to its outlook, revenue is projected to decline by around 5% year-on-year, while operating profit could fall by 32% and ordinary profit by 18%.
For PI Industries, the guidance could potentially have implications for Pyroxasulfone sales in FY2027, given the company’s role as a supplier of the active ingredient used in AXEEV. However, analysts currently view the development as neutral for PI’s near-term outlook, as demand trends remain uncertain.
Kumiai said its operating environment could remain volatile in the coming months, citing geopolitical tensions, currency fluctuations and trade policies as key risks. The company highlighted the ongoing conflicts in Ukraine and the Middle East, as well as foreign exchange movements, Japan–China relations and potential US tariff changes, as factors that could influence business conditions during the year.
