Japan Pulp and Paper Company (8032) Q2 2026 earnings summary

Executive summary

• Revenue for H1 FY2025 grew 3.1% year-over-year to ¥287,131 million, driven by overseas M&A contributions.

• Ordinary profit fell 54.6% year-over-year to ¥3,748 million, mainly due to losses in Non-Japan Wholesaling and Raw Materials & Environment segments.

• Profit attributable to owners dropped 83.9% year-over-year to ¥920 million, impacted by restructuring expenses and lower ordinary profit.

• Comprehensive income was ¥1,627 million, down from ¥10,201 million in the prior year period.

Financial highlights

• H1 FY2025 revenue: ¥287.1 billion (+3.1% YoY); gross profit: ¥49.3 billion (+7.4% YoY); SG&A expenses rose to ¥45,019 million.

• Operating profit: ¥4.3 billion (-47.1% YoY); ordinary profit: ¥3.7 billion (-54.6% YoY).

• Profit attributable to owners: ¥0.92 billion (-83.9% YoY); basic EPS: ¥7.47, down from ¥46.38 after stock split adjustment.

• Total assets decreased to ¥381,065 million; net assets were ¥145,505 million; equity ratio: 35.1%.

Outlook and guidance

• FY2025 ordinary profit forecast revised down by 32.3% to ¥10.5 billion; profit attributable to owners forecast cut by 76.5% to ¥2.0 billion.

• Full-year operating profit forecast is ¥11,500 million (down 23.7% YoY); basic EPS projected at ¥16.70.

• Dividend forecast raised to ¥34 per share, adopting a progressive policy with DOE ratio of 3%+.

• Non-Japan Wholesaling expected to remain unprofitable due to slow turnaround in Germany; restructuring expenses anticipated.

• Raw Materials & Environment segment faces lower revenue from biomass fuel and impairment losses.