Japan Pulp and Paper Company (8032) Q2 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 2.6% YoY to ¥278,419 million; operating income fell 7.7% to ¥8,185 million and ordinary profit fell 7.4% to ¥8,250 million.

• Interim profit attributable to owners rose 7.3% to ¥5,714 million, supported by extraordinary gains including fixed-asset disposals; comprehensive income declined 15.7% to ¥10,201 million.

Financial highlights

• Gross profit increased 5.3% to ¥45,939 million from ¥43,633 million.

• Basic EPS was ¥46.38, versus ¥38.81 year-over-year, adjusted for the stock split.

• Total assets were ¥375,057 million and net assets were ¥147,757 million at September 30, 2024; the equity ratio was 36.3%, up from 34.2% at March 31, 2024.

Outlook and guidance

• FY2025 guidance remains unchanged: operating income ¥18,000 million, ordinary profit ¥18,000 million, and profit attributable to owners ¥10,000 million.

• Environmental materials is expected to offset weaker overseas wholesale and paper processing results.

• Full-year dividend forecast is ¥12.50 per share post-split; the annual dividend marks a fourth consecutive increase.

• FY2026 targets include ordinary profit of ¥22.0 billion, ROE of at least 8%, ROA of at least 5%, ROIC of at least 7%, and net D/E of no more than 1.0x.