Chuetsu Pulp & Paper Reports Lower FY2025 Operating Profit Amid Higher Costs and Weak Pulp Market

Chuetsu Pulp & Paper Co., Ltd. reported a decline in consolidated operating profit for fiscal 2025, citing weaker pulp export prices, rising fuel and raw material costs, and higher repair and labor expenses, while outlining continued investment in cellulose nanofiber (CNF) applications and decarbonization initiatives.

The company posted consolidated sales of ¥110.4 billion for fiscal 2025, down ¥623 million from the previous year. Operating profit fell to ¥2.74 billion from ¥4.84 billion a year earlier, while net profit attributable to shareholders rose to ¥2.44 billion from ¥1.76 billion. Annual dividends were increased to ¥90 per share from ¥70 per share.

Chuetsu Pulp said lower pulp export prices due to deteriorating market conditions offset gains from price revisions in paper products. Domestic sales of packaging and tissue paper increased, although exports were affected by weaker Asian demand and intensified export pressure from China.

For fiscal 2026, the company forecasts sales of ¥114 billion and operating profit of ¥2.3 billion. It expects benefits from paper price revisions and recovery in pulp export markets, but warned that elevated fuel costs, logistics expenses and geopolitical risks in the Middle East could weigh on earnings.

The company also reviewed progress under its Medium-Term Management Plan 2025. Chuetsu Pulp said its external pulp sales volume in fiscal 2025 increased 93.2% compared with fiscal 2020 levels as it expanded beyond graphic paper into hygiene products and other applications.

In CNF development, the company reported expanding use of its “nanoforest” materials in agriculture, cosmetics, rubber compounds, recycled plastics and electronics applications. Examples included adoption in UV milk products, watch bands and solder paste for electronic substrates.

Chuetsu Pulp also said it reduced coal consumption in manufacturing by 90.2% compared with fiscal 2020 levels and revised its 2030 carbon reduction target from a 50% cut to a 55% cut versus fiscal 2013 emissions levels.

Separately, the company said it is working with Shimizu Corp. on biomass-based hydrogen production and hydrogen utilization studies for pulp mills under a NEDO-supported research project.