Good morning, everyone. Thank you for taking the time off your busy schedules to participate in today's financial results briefing. I would now like to start today's briefing on financial results for the first half of fiscal year 2023 for the ADEKA CORPORATION. First are the consolidated results for the first half of fiscal year 2023. Net sales decreased by JPY 8.8 billion Y-o-Y, down to JPY 187.6 billion. Operating profit decreased by JPY 300 million, down to JPY 14.7 billion. Current profit decreased by JPY 900 million, down to JPY 15.5 billion, and profit attributable to owners of parent increased by JPY 500 million, up to JPY 10.5 billion. Next is an analysis of operating profit. We registered a Y-o-Y decrease in operating profit of JPY 300 million.
Here, while net pricing, and the foreign exchange rate had a positive impact, sales volume, and manufacturing, and fixed costs weighed down on results, and this ultimately translated into a Y-o-Y decrease of JPY 300 million. Page 6 shows the trends in consolidated performance for net sales and operating profit and their respective progress versus the forecast. Realized net sales results as of the end of the first half stood at 46% of the full year forecast, while operating profit registered a progress of 43%. Next are the consolidated results for the first half of fiscal year 2023 on a per segment basis. Polymer additives and the life science segment registered a significant decrease in net sales. Conversely, sales grew for the electronics and IT materials and the food products segment.
The same dynamic holds true for operating profit, with polymer additives and the life science segment registering a significant Y-o-Y decrease. Conversely, the food products segment delivered significant operating profit growth. These were the main items of note for consolidated results by segment. I would now like to give you a more in-depth review of the results for each segment, starting with polymer additives in the chemicals segment. Here are the main factor highlights for sales. Sales of one-pack granule additives and antioxidants struggled amid weak demand in the Middle East and Europe. This was coupled with sluggish sales of flame retardants for engineering plastics used in home appliance frames, and other products. Additionally, agents used in building materials, and food packaging also registered a weak sales performance. On the other hand, materials for automobiles staged a gradual recovery and delivered steady results.
In terms of operating profit, we faced significant difficulties from the negative impact of a decrease in sales volume, which weighed down on results by JPY 1.6 billion. On the other hand, foreign exchange had a slight positive impact. Next are the results for our electronics, and IT materials in the chemicals segment. Here are the main factor highlights for sales. Despite the negative impact of semiconductor manufacturers reducing production until the end of the second quarter, sales nevertheless increased Y-o-Y due to brisk sales of products for advanced semiconductors, and rallying sales of display-related materials. Regarding semiconductors, as I mentioned just now, we registered strong sales of high-K materials for advanced DRAM and steady sales of photoacid generators used for ARF and EUV semiconductor lithography. On the other hand, a decrease in sales volume led to a weak performance for commodity products.
Regarding displays, photoinitiators for color filters and black matrix resists and etching materials for LCD panels delivered a steady performance. On the other hand, photo-curing resins for optical film delivered a weak performance. Higher fixed costs and net pricing had a negative impact on operating profit, while foreign exchange and sales volume had a positive effect. Next is functional chemicals in the chemicals segment. Here are the main factor highlights for sales. Here, we registered strong sales of lubricant additives for engine oils, mainly in the United States. Additionally, sales of propylene glycol and peroxide products for general industrial use were poor amid lingering market weakness. As I mentioned just now, in terms of chemicals for general industrial use, propylene glycol and peroxide products delivered a poor performance.
Agents for use in cosmetics, too, delivered a weak performance, as did resins for use in home appliances, smartphones, and PCs. On the other hand, in terms of materials for automobiles, lubricant additives for engine oil overall delivered a strong performance and special epoxy resins for structural bonding and epoxy resin adhesives for automotive electronic components posted steady results. Lastly, reactive emulsifiers for use in architectural coatings and others too delivered strong results. A decrease in sales volume had a very significant negative impact on operating profit. Additionally, higher fixed costs weighed down on results as well. Conversely, net pricing and foreign exchange had a positive effect, but this wasn't enough to offset the overall negative impact. Next is the food products segment. Here are the main factor highlights for sales.
Our Marvelous series of functional margarines contributes to keeping bread and other products fresher for longer and extending their use-by date. Marvelous delivered strong sales results, including in terms of new products released in this series in fiscal year 2023. Outside Japan, although it is yet to recover to previous levels, we are seeing a recovery and demand in China as well as steady sales in Southeast Asia. In terms of materials for souvenir confections, we saw steady sales of margarines and fillings. Within bread and confectioneries, we registered steady sales, primarily of our Marvelous series of functional margarine for kneading. Conversely, general-purpose fats and oils delivered a weak performance. Lastly, our Deli-PLANTS series of plant-based foods saw increased adoption.
We had posted an operating loss in the first half of fiscal year 2022, but during the same period this year, we were able to stage a return to the black in what constitutes a rather pronounced recovery. In terms of the breakdown, net pricing and sales volume made a positive operating profit contribution of JPY 2.8 billion and JPY 400 million, respectively. Next is the life science segment. Here are the main factor highlights for sales. In North America, insecticide sales were slow due to prolonged colder weather, and fewer pests than usual. Additionally, sales of agricultural chemicals stagnated in Japan due to unfavorable weather conditions and slow-moving inventory from previous fiscal years. We registered weak sales of agrochemicals in North America and Japan while posting a steady sales performance in Brazil and India.
Within pharmaceuticals, our topical antifungal agent, luliconazole, for the treatment of male athlete's foot, posted a weak sales performance. Lower sales volume had a very significant negative impact on operating profit, and this was coupled with a Y-o-Y increase in fixed costs weighing down on results. While foreign exchange and net pricing did have some positive influence on operating profit, this wasn't enough to offset the negative impact from lower sales volume. I would now like to discuss a revision to the fiscal year 2023 consolidated financial forecasts. Page 14 shows the market environment outlook for fiscal year 2023. Here we have market trends for the first half, which comprises the period through to September 30, 2023, and the trend forecasts for the second half for the period running from October 2023 through to March 2024.
The market for automobiles was up during the first half, and we expect this trend to continue in the second half. Building materials were in a downtrend in the first half, but we expect this trend to bottom out and for this market to remain flat in the second half. Next, the market for semiconductors registered a significant decline in the first half, and furthermore, we don't expect a reversal to take place in the second half. With that being said, we expect significant differences in results for general use products and high-end products. The NAND flash memory market hasn't necessarily been all that positive, but we do expect an upswing when it comes to advanced DRAM. Regarding the market for displays, while this market was on an uptrend in the first half, we expect it to plateau and remain flat in the second half.
In terms of cosmetics, this market was on a downtrend in the first half, but we expect it to bottom out and remain flat in the second half. Moving on to the segment of food products, the market of mass merchants, and convenience stores was on a downward trend in the first half, but we expect this trend to bottom out and remain flat in the second half. Additionally, while the tourism and restaurant industry was on an upward trend in the first half, we expect it to plateau and remain flat in the second half. Last is the life science segment. Here, the market for agrochemicals was on a significant declining trend in the first half, and we expect this trend to continue in the second half as we believe this market still lacks the strength to reverse this direction.
This table shows the revised consolidated financial forecasts for fiscal year 2023. We invite you to compare the revised forecasts with the realized results for fiscal year 2022 and the forecasts announced back in August 2023. The sales, operating profit, and current profit forecasts have been revised downward from the previous forecast announced in August, while the profit attributable to owners of parent forecast remains unchanged. On a Y-o-Y basis, this represents an increase for sales, operating profit, current profit, and profit attributable to owners of parent. Next are the revised consolidated financial forecasts on a per segment basis. We expect polymer additives to continue struggling in terms of sales, and operating profit. Regarding the life science segment, while we believe we will manage to deliver sales in line with last fiscal year's performance, we are forecasting a Y-o-Y decrease in terms of operating profit.
On the other hand, we expect significant profitability improvements in the food products segment. I would now like to go over the forecasts for each segment, starting with polymer additives in the chemicals segment. While we expect demand for items for automobiles will recover steadily, we anticipate continued difficulties in sales of one-pack granule additives and antioxidants. In light of this, the forecast is for a YOY decrease in sales and profit. Regarding the market for automobiles, we expect production in fiscal year 2023 to be only around 90% of fiscal year 2019 levels. On the other hand, we expect inventories in process for automotive materials to continue decreasing towards zero. Additionally, we expect an increase in sales of flame retardants for use in electric vehicles. We expect nucleating agents, light stabilizers, plasticizers for rubber, and intumescent flame retardants to drive results.
On the other hand, all plastic products are the main market for one-pack granule additives and antioxidants, and we have had no choice but to take into account the negative impact of the economic slowdown on this market. As such, we expect weak production results for polymers in the Middle East and Europe, as well as intensifying competition in markets also as a result of this. We forecast a rather tight competitive environment for one-pack granule additives and antioxidants, and therefore believe there is a need for us to cultivate new markets. Allow me to briefly discuss a new product we will be releasing within polymer additives. More specifically, ADK STAB NA-B99P is a new nucleating agent promoting beta crystal formation, highly resistant to impact and easily stretchable. This is therefore a new nucleating agent that increases the potential of plastics.
The table at the bottom contains a breakdown of this product's major physical properties, with ADK STAB NA-B99P possessing capabilities not found in previous nucleating agents, such as impact resistance and extensibility. Offering this product therefore allows us to enhance and expand our lineup of nucleating agents. Additionally, the global polypropylene market is on an upward trend, and we can suggest our nucleating agents for a variety of use cases. For example, we expect to see increasing use of plastic-based building materials, and within this, our beta crystal nucleating agent, even in small quantities, allows for the manufacturing of thin and lightweight pipes, as well as high-durability pipes. Furthermore, this constitutes a contribution to helping reduce environmental impact, and we have plans to carry out these efforts globally. Next are electronics and IT materials in the chemicals segment. Demand for products for advanced semiconductors is expected to remain solid.
Regarding the semiconductor market, we expect the negative impact of reduced production to worsen, so we view a sharp recovery in fiscal year 2023 in terms of commodity product lines as being unlikely. Conversely, as I mentioned earlier, as the trend towards semiconductor miniaturization progresses and new technological developments are achieved, we expect a strong performance in terms of high-K materials for advanced DRAM and photoacid generators used for semiconductor lithography. Regarding the market for displays, production adjustments have, for the most part, come to an end, and this has translated into a recovery, mainly in large panels. As such, we expect a strong performance in terms of photoinitiators for color filters, etching materials for LCD panels, black matrix resists, etc. Another important trend is the shift of panel production to China, as this could potentially signify changes to the market position of material manufacturers like ADEKA.
In light of this, we view it as a necessity for us to accelerate sales of photo-curing resins for optical films and other products in the Chinese market. Next are functional chemicals in the chemicals segment. We expect efforts to expand sales in the fields of automobiles and architectural coatings, which are two fields where demand is expected to grow to translate into an increase in sales and profit. The automobile market is expected to stage a recovery, and furthermore, we expect further growth in the aftermarket, such as replacement oils adoption of our ADEKA Sakura-Lube series of lubricant additives for engine oil. Regarding the market for architectural coatings and others, we are seeing changes in the housing environment in Asia, and in light of this, we expect increasing demand for architectural coatings.
Against this backdrop, we expect an increase in sales of our ADEKA REASOAP series of acrylic emulsion coating additives. On the other hand, we expect a continued dull performance in terms of materials for use in the markets of industrial production and cosmetics. As such, we will therefore be carrying out the strict management of profit margins for peroxide, and polypropylene glycol products. Next is the food products segment. Here, we will continue to focus on the improvement of profitability, and the expansion of sales, mainly in the areas of food loss reduction products and plant-based foods. Within existing domestic markets, spending on breads and souvenir sweets remains oriented toward low-priced items as consumers prioritize saving money.
As such, we will be carrying out measures to address this trend. We will additionally be carrying out painstaking initiatives regarding the market for confectionery, sweets, and desserts, which has been seeing shrinking demand, mainly for luxury items. At the same time, we have plans to output products appealing to consumers' wants and needs. Worthy of note here is our Marvelous series of functional margarines for professional use, which is a product series helpful in food loss reduction. We have plans to expand our product lineup for the Marvelous series by adding products that help increase the volume of bread, and products that preserve food's delicious taste even after reducing the oil content. Through these efforts, we believe we will be able to secure strong, stable demand for Marvelous. We also have our Deli-PLANTS series of plant-based foods. Here, we have divided our target markets by region.
In Japan, we have seen increased adoption of this product series, which is used in many applications. Going forward, we will work primarily to increase brand recognition and enhance proposals on recipes. In Asia, we have started the sale of this product series in China and Southeast Asia. Lastly, in Europe and the US, we are currently studying technologies to address issues related to consumer preferences and product functionality. Next is the life science segment with Nihon Nohyaku accounting for the bulk of the results here. Sales are expected to rise, but profit is expected to fall amid ongoing downward pressure on the prices of generic agricultural chemicals in Brazil. We forecast a Y-o-Y increase in sales, partly thanks to our plans for the early release of bactericides in the US and an admixture of benzpyrimoxan as an insecticide for paddy rice in India under the commercial name of Orchestra.
We also expect a lower yen in the foreign exchange markets to translate into a sales increase. On the other hand, we expect continued downward pressure on generic pesticide prices in Brazil to have a significant negative impact on operating profit, which is expected to decrease on a Y-o-Y basis. Next are the reference materials. This slide shows the progress made within the scope of the ADX 2023 mid-term management plan. While we believe that some of the ADX 2023 targets for fiscal year 2023 might not be within our reach, we have been able to make good progress in the execution of capital investment. Furthermore, we expect to significantly exceed the dividend payout ratio target. Lastly, the annual dividend forecast remains unchanged at JPY 80 per share for a Y-o-Y increase of JPY 10 per share.
Next is a discussion of the capital investment plan and its progress. As you can see, over the past year, we have executed capital investment with a heavy focus on electronics and IT materials. Additionally, within the scope of the life science segment, we carried out the reinforcement of facilities in India, as well as our facilities for epoxy resin adhesives within the scope of functional chemicals. I would now like to discuss our efforts toward the reconstruction of the R&D structure. As announced in a recent press release, the ADEKA Corporation will be carrying out the construction of a new research building within the Kuki R&D Center. We expect an investment amount of approximately JPY 10 billion for a total floor area of 11,000 square meters spread out over seven floors above ground.
Within this scope, we will be carrying out R&D, specializing in the areas of semiconductors and mobility and electronics. We are therefore making progress toward construction of this new research building as we endeavor to create innovative new products in a rock-solid R&D structure. Within electronics and IT materials, we seek to develop into a general manufacturer of semiconductor materials, building upon and expanding from our ALD materials. In functional chemicals, we will be taking a proactive approach toward introducing distinctive polymers in the electronic materials field. Up until now, our business had been based on our clients' positive evaluation of our products, but we now want to make proposals to our clients in terms of uses for materials, especially in the integrated circuit packaging process. We will therefore be carrying out these proposals while receiving a positive endorsement of our technological capabilities.
The goal is to construct a more rock-solid R&D structure, and we will be carrying out R&D at this new research building, including fundamental research. Additionally, in terms of evaluation and technology development, we will be leveraging the ADEKA Group spaces in Japan and overseas, together with a very robust approach of working closely with our clients in order to be able to respond to their needs and requirements. The purpose behind the construction of this new research building is therefore to build a robust R&D structure. Last is the overseas sales ratio, which stood at 54.2% at the end of the second quarter. While this percentage exceeds our initial target, we will continue working to further raise this number. This concludes today's briefing. Thank you for your time.