Mitsubishi Paper Mills (3864) investor relations material

Executive summary

• Net sales for Q1 FY2026 were ¥38.6 billion, down 2.1% year-over-year, with flat domestic sales and decreased overseas sales.

• Operating profit improved to ¥0.4 billion from a loss of ¥1.2 billion in the prior year, driven by growth in functional materials, cost reductions, and changes in repair timing.

• Net profit surged to ¥2.2 billion, up ¥3.5 billion year-over-year, mainly due to gains from the sale of investment securities and cross-shareholdings.

• The company is executing its Medium-term Management Plan, focusing on technological sophistication, environmental initiatives, and governance reforms.

• An earthquake in June 2026 caused temporary production disruption at the Hachinohe Mill, but operations resumed quickly with no injuries or environmental impact.

Financial highlights

• Operating profit increased to ¥0.4 billion from a loss of ¥1.2 billion in FY2025 1Q.

• Extraordinary income of ¥2.6 billion was posted from the sale of investment securities.

• Profit before income taxes reached ¥3.1 billion, up ¥4.2 billion year-over-year.

• Gross profit increased to ¥4,967 million from ¥3,845 million year-over-year.

• Comprehensive income was ¥1,037 million, compared to a loss of ¥2,225 million in the prior year.

Outlook and guidance

• Full-year forecasts remain unchanged: net sales ¥175.0 billion, operating profit ¥6.0 billion, profit ¥6.5 billion.

• Earnings per share forecast for the full year is ¥148.31.

• Annual dividend forecasted at ¥20 per share (¥7 interim, ¥13 year-end).

• Operating profit expected to rise year-over-year, offsetting higher raw material and fuel costs with price revisions and structural reforms.

• No changes to previously announced forecasts.