Mitsubishi Paper Mills Reports Sharp Decline in Fiscal 2026 Operating Profit

Mitsubishi Paper Mills Limited reported a sharp decline in operating profit for the fiscal year ended March 31, 2026, citing earthquake-related losses, equipment issues at its Hachinohe mill and weaker sales volumes in its German operations.

The company posted consolidated sales of ¥157.5 billion, down 10.5% from the previous year. Operating profit fell 94.2% to ¥264 million, while ordinary profit declined 62.2% to ¥1.72 billion. Net profit attributable to shareholders decreased 56.2% to ¥1.9 billion.

Mitsubishi Paper Mills said higher maintenance costs, aging equipment-related troubles and losses stemming from the December 2025 earthquake off the eastern coast of Aomori Prefecture affected earnings during the year. The company recorded ¥752 million in disaster-related losses linked to restoration costs and production stoppages at the Hachinohe mill.

In the functional products business, sales declined due to intensified competition in China for water treatment membrane substrates and lower demand in parts of the energy storage separator market. However, imaging-related products benefited from stronger demand in Europe and the United States.

The paper materials business also reported lower sales and earnings as domestic printing paper demand continued to decline and overseas pulp market prices weakened. Packaging paper sales increased, supported by demand for plastic-reduction and sustainable packaging solutions.

Mitsubishi Paper Mills said it is advancing restructuring and investment programs under its medium-term management plan. The company launched the “Beyond” next-generation transformation project at its Takasago mill with planned investments of ¥10 billion aimed at strengthening growth businesses and improving production efficiency.

The company also continues work on the “Reborn60 Hachinohe” renewal plan, which includes ¥25 billion in investment through fiscal 2030 to transform the Hachinohe mill into a next-generation sustainable production site.

For fiscal 2027, Mitsubishi Paper Mills forecast consolidated sales of ¥175 billion and operating profit of ¥6 billion.