Tokushu Tokai Paper Co., Ltd. Announces Strong 2Q FY2026 Results with Record First-Half Performance

📊 Financial Highlights (1H FY2026)

• Net Sales: Strong growth (record high for 2Q)

• Operating Income: ¥2,359 million (+25.9% YoY)

• Ordinary Income: ¥3,327 million (+8.8% YoY)

• Net Profit: ¥2,307 million (+10.1% YoY)

✅ All key metrics increased YoY
✅ Record-high net sales and ordinary income for first half

📈 Segment Performance

🏭 Industrial Materials Business

• Sales: +2.7% YoY

• Operating Income: +68.3% YoY

• Growth drivers:

  • Higher selling prices (corrugated cardboard, kraft paper)

  • Increased volume

🧪 Specialty Materials Business

• Sales: -5.9% YoY

• Operating Income: -12.5% YoY

• Key issue:

  • Higher personnel costs impacting margins

🧻 Household Products Business

• Sales: +3.9% YoY

• Operating Income: +31.7% YoY

• Drivers:

  • Price revisions (toilet paper, paper towels)

  • Strong volume growth

♻️ Environment-Related Business (Key Growth Engine)

• Sales: +9.5% YoY

• Operating Income: +121.0% YoY

• Highlights:

  • Contribution from recycling subsidiaries

  • Growth in waste collection & civil engineering orders

  • Prior-year one-off costs did not recur

🚀 Key Business Developments

🔹 Growth Drivers

• Pricing power across multiple segments

• Expansion of environment & recycling business

• Contribution from newly consolidated subsidiaries

🔹 Cost Pressures

• Rising personnel expenses impacted Specialty Materials

💰 Dividend Update

• Interim dividend: ¥65 per share (increase vs prior year trend)

🔮 Full-Year FY2026 Outlook

• Revenue Forecast: ¥99 billion

• Operating Income: ¥5 billion

• Net Profit: ¥4.9 billion

➡️ Company maintains positive growth outlook with no revision to guidance

🏗️ Capex / Expansion / Strategic Direction

• Continued focus on:

  • Environment-related business expansion

  • Recycling and waste management

• Historical strategy includes:

  • Investments in biomass and eco-friendly operations

  • Growth via subsidiaries & acquisitions in recycling segment