Chuetsu Pulp & Paper Reports Lower Operating Profit Amid Weak Export Markets and Rising Costs

Japanese paper and pulp producer Chuetsu Pulp & Paper Co., Ltd. reported lower operating and ordinary profit for the fiscal year ended March 31, 2026, as weaker overseas pulp prices, declining paper demand and higher raw material costs weighed on earnings.

The company posted consolidated net sales of ¥110.4 billion, down 0.6% year on year, while operating profit fell 43.4% to ¥2.74 billion. Ordinary profit declined 34.0% to ¥3.38 billion. Net profit attributable to shareholders rose 38.6% to ¥2.44 billion.

Chuetsu Pulp & Paper said domestic demand for graphic paper continued to decline due to digitalization and population trends, while export markets in Asia and the Middle East weakened amid increasing competition from Chinese suppliers.

In its packaging paper business, the company reported stronger domestic sales supported by demand for environmentally conscious packaging materials, fast-food applications and replacement demand from corrugated packaging used in e-commerce. However, export sales declined because of softer demand in Asia.

The company said sales in its paper and pulp manufacturing segment fell 0.9% to ¥100.5 billion, while segment operating profit dropped 53.8% to ¥1.69 billion.

Chuetsu Pulp & Paper’s power generation business recorded sales of ¥5.66 billion, up 0.7%, although profit declined 6.9% as higher fuel costs offset cost-reduction measures.

Looking ahead, the company forecast fiscal 2027 consolidated sales of ¥114 billion and operating profit of ¥2.3 billion. The company said fiscal 2026 marks the first year of its “Medium-Term Management Plan 2030,” focused on strengthening its paper and pulp operations, developing new businesses and advancing green transformation initiatives.