Oji Holdings Reports Return to Profit in First Quarter of FY2026 as Sales Rise on Pricing and Overseas Growth

Oji Holdings Corporation reported higher sales and a return to profitability for the first quarter of the fiscal year ending March 31, 2027, supported by price revisions, overseas business growth, and production restructuring initiatives. The company maintained its full-year earnings forecast.

For the quarter ended June 30, 2026, consolidated net sales increased 2.4% year on year to ¥468.5 billion, while operating profit rose 4.8% to ¥3.9 billion. Ordinary profit improved to ¥5.6 billion, compared with a loss of ¥3.6 billion in the same period last year, primarily due to foreign exchange gains from the revaluation of foreign currency-denominated receivables and payables. Profit attributable to owners of the parent totaled ¥3.2 billion, compared with a loss of ¥5.2 billion a year earlier.

According to the company, revenue growth was driven by price revisions for corrugated containers in Japan, the consolidation of AustroCel Hallein, and positive foreign currency translation effects resulting from the weaker yen. Operating profit also benefited from pricing actions and production system restructuring, despite higher raw material costs linked to geopolitical developments in the Middle East.

Within its business segments, Household and Industrial Materials recorded net sales of ¥237.9 billion, up 3.5% year on year, while operating profit increased to ¥5.8 billion from ¥0.2 billion. The company attributed the improvement to price revisions, restructuring initiatives at Oji Nepia, stronger corrugated container sales in Southeast Asia, and continued restructuring at Oji Fibre Solutions following its withdrawal from the containerboard business.

The Functional Materials segment posted net sales of ¥59.4 billion, up 2.7%, with operating profit rising 41.8% to ¥4.0 billion, supported by increased sales of specialty paper products, including heat-sealable paper and non-fluorine oil-resistant paper, together with price revisions.

The Forest Resources and Environment Marketing segment generated net sales of ¥98.2 billion, an increase of 2.7%, although operating profit declined 32.4% to ¥1.6 billion due to a long shutdown at Cenibra. The Printing and Communications Media segment reported net sales of ¥60.6 billion, down 10.6%, and an operating loss of ¥3.3 billion, reflecting continued demand declines in newsprint and printing papers, higher raw material costs, and weaker overseas market conditions.

Oji Holdings said its Medium-Term Business Plan 2027 remains focused on improving capital efficiency, portfolio transformation, and sustainability. During the quarter, the company completed the second phase of its treasury share acquisition program and cancelled 100 million treasury shares acquired under the program. It also reiterated financial targets including maintaining a net debt-to-equity ratio of 1.0 or less.

As of June 30, 2026, total assets stood at ¥2.73 trillion, while net assets were ¥1.12 trillion. The company left unchanged its full-year forecast for FY2027, projecting net sales of ¥1.94 trillion, operating profit of ¥60 billion, ordinary profit of ¥45 billion, and profit attributable to owners of the parent of ¥35 billion.