Nippon Paper Industries Reports Higher Profit for FY2026 Despite Modest Sales Growth

Nippon Paper Industries Co., Ltd. reported higher consolidated earnings for the fiscal year ended March 31, 2026, supported by improved profitability in its daily-life products and wood products businesses.

The company posted consolidated net sales of ¥1.19 trillion, up 0.9% year on year, while operating profit increased 27.9% to ¥25.2 billion. Ordinary profit rose 49.0% to ¥23.1 billion, and profit attributable to owners of parent climbed 158.7% to ¥11.7 billion.

Nippon Paper said comprehensive income for the year reached ¥32.7 billion, compared with ¥17.3 billion in the previous fiscal year. Cash and cash equivalents at the end of the period increased to ¥207.4 billion from ¥185.9 billion a year earlier.

By segment, the Daily-life Products business recorded net sales of ¥482.0 billion, up 5.3% year on year, and returned to an operating profit of ¥7.2 billion from a loss in the previous year. The Wood Products and Construction Related segment posted operating profit of ¥10.0 billion, up 4.7%. Meanwhile, the Paper and Paperboard segment reported operating profit of ¥564 million, down 93.2%, while Energy segment operating profit declined 6.4% to ¥3.3 billion.

Operating cash flow rose to ¥75.0 billion, while investing cash outflows increased to ¥43.6 billion, primarily reflecting purchases of non-current assets totaling ¥54.3 billion. Financing cash outflows narrowed to ¥7.9 billion from ¥18.3 billion a year earlier.

For the fiscal year ending March 31, 2027, Nippon Paper forecasts consolidated net sales of ¥1.22 trillion and operating profit of ¥25.0 billion. The company expects profit attributable to owners of parent to decline 14.8% year on year to ¥10.0 billion.

The company also increased its annual dividend for FY2026 to ¥15 per share from ¥10 per share in the previous fiscal year and plans to maintain the same level for FY2027.