Nippon Paper Industries Co (3863) Q1 2026 earnings summary

Executive summary

• Net sales rose 2.0% year-over-year to ¥292.6 billion, driven by growth in the Daily-Life Products segment.

• Operating income increased 32.6% year-over-year to ¥5.5 billion, with profit improvements at Opal and NDP.

• Net income turned positive at ¥1.9 billion, reversing a prior year loss.

• Comprehensive income turned negative at ¥(12,450) million, mainly due to foreign currency translation losses.

Financial highlights

• Net sales: ¥292.6 billion (up ¥5.6 billion year-over-year).

• Operating income: ¥5.5 billion (up ¥1.4 billion, 32.6% year-over-year).

• Ordinary income: ¥5.6 billion (up ¥0.6 billion, 9.9% year-over-year).

• Gross profit rose to ¥49,110 million from ¥46,113 million year-over-year.

• Basic earnings per share improved to ¥16.50 from ¥(9.44) in the prior year period.

Outlook and guidance

• FY2026/3 forecast unchanged: net sales ¥1,205.0 billion, operating income ¥34.0 billion, net income ¥12.0 billion.

• Operating profit expected to rise 72.5% to ¥34,000 million, and profit attributable to owners of parent to ¥12,000 million, up 164.4%.

• Dividend forecast for FY2026 is ¥15.00 per share, up from ¥10.00 in FY2025.

• Daily-Life Products segment expected to drive growth, with significant operating income improvement forecast.

• Cost increases in raw materials, labor, and logistics anticipated, but offset by price adjustments and efficiency gains.