Japan Pulp and Paper Company (8032) Q4 2024 earnings summary

Executive summary

• FY24 revenue was ¥534.2bn, down 2.0% YoY; ordinary profit was ¥16.8bn, down 21.1%, and net income attributable to owners was ¥10.4bn, down 59.2%.

• Pricing gains in domestic wholesale and paper processing partly offset a steep decline in overseas wholesale earnings.

Financial highlights

• Revenue fell to ¥534,230m (98.0% of prior year); gross profit rose 1.3% to ¥87,406m.

• Operating income declined 14.1% to ¥17,403m; ordinary profit declined 21.1% to ¥16,753m.

• Net income attributable to owners fell 59.2% to ¥10,357m, partly because the prior year included a gain on fixed-asset sales.

Outlook and guidance

• FY25 forecast: operating income ¥18,000m and ordinary profit ¥18,000m, respectively 103.4% and 107.4% of FY24; net income attributable to owners forecast at ¥10,000m, or 96.6%.

• FY25 ordinary-profit targets by segment: domestic wholesale ¥5,700m, overseas wholesale ¥5,500m, paper processing ¥7,400m, environmental materials ¥1,500m, and real estate rental ¥1,500m.

• FY25 outlook assumes overseas sales-volume recovery as customer inventory adjustments end and maintained or higher domestic prices; USD/GBP/AUD assumptions are ¥141.83/¥180.68/¥96.94.

• FY25 annual dividend planned at ¥250 per share, marking a fourth consecutive annual increase.