Oji Holdings Sees Profit Recovery in FY2026 as Packaging and Biomass Investments Expand

Oji Holdings Corp. reported a sharp decline in operating profit for the fiscal year ended March 31, 2026, as weaker pulp markets and lower domestic paper demand weighed on earnings, while the company accelerated restructuring and growth investments in packaging and forest biomass businesses.

Consolidated net sales rose 0.7% year on year to ¥1.86 trillion, supported by the acquisition of Walki Holding Oy and expansion in sustainable packaging operations. Operating profit fell 48.9% to ¥34.6 billion, while ordinary profit declined 40.9% to ¥40.5 billion. Profit attributable to owners of parent increased 20.4% to ¥55.6 billion due mainly to gains from asset sales.

The company said it continued restructuring low-profit businesses during the year, including the closure of Oji Nepia’s Edogawa plant in August 2025 and Tomakomai plant in March 2026, as well as the suspension of a newsprint machine at Oji Paper. Overseas, Oji withdrew from Oji Fibre Solutions’ containerboard business and sold its Australian packaging business.

At the same time, Oji increased investment in growth areas including India and Southeast Asia, sustainable packaging and biomass-related businesses. The company announced plans to build a new liquid packaging carton plant in Vietnam and expand cellulose-based pressboard production capacity at its Oji F-Tex Nakatsu mill.

In January 2026, Oji completed the acquisition of Austria-based AustroCel Hallein, a producer of dissolving pulp and bioethanol, as part of its strategy to strengthen its forest biomass business.

Within the Household and Industrial Materials segment, which includes corrugated containers, folding cartons and sustainable packaging, sales increased 2.8% to ¥943.3 billion and operating profit rose 7.5% to ¥19.7 billion. Growth was supported by the consolidation of Walki Holding and restructuring measures.

For fiscal 2027, Oji forecasts net sales of ¥1.94 trillion and operating profit of ¥60 billion, citing expected benefits from restructuring initiatives, price revisions and improving pulp market conditions.